SBellPR

The Public Relations Society of America just made all its members aware of new governmental policy regarding blogging. Lately, I’ve felt the whole social media scene has become the wild, wild west. In surveying people in my circles, I recently asked “What are your 3 biggest challenges with social media.” One answer came back “knowing who to trust.”  So, it was with great interest that I read the Federal Trade Commission (FTC) has issued final changes to its Guides regarding the Use of Endorsements and Testimonials in Advertising. While advisory in nature, the new guidelines will act as benchmarks of behavior for public relations, marketing and advertising pros, as they will aid in avoidiing the violation of underlying laws concerning unfair competition and false advertising.

As laid out in the letter from the PRSA to its members, here are the key points:
The new ‘guides’, as set out in the FTC’s notice, make three key departures from previous guidance:

• The FTC advises that “endorsers” as well as advertisers can be held liable for false or unsubstantiated claims or for failing to disclose material connections between the parties.
• The Guides no longer offer the “safe harbor” whereby testimonials can be qualified by a “results may vary” disclaimer.
• Regarding endorsements, the Guides specify that celebrities should disclose relationships with advertisers.

While the FTC will approach each potential violation on a case-by-case basis, the new guidelines will impact how professionals should approach some common practice scenarios. Here are some applications of the guidelines:

• Bloggers who receive cash or in-kind payment (including free products or services for review) are deemed endorsers and so must disclose material connections they share with the seller of the product or service.
• Any firm that engages bloggers by paying them outright to create or influence editorial content or by supplying goods or services to them at no cost may be liable if the blogger does not disclose the relationship.
• Advertisements or promotions that feature a consumer who conveys his or her experience with a product or service as “typical” should clearly disclose what results consumers can generally expect or specify how the results were unique to the individual circumstances.
• If research is cited in an advertisement or promotion, any sponsorship of the research by the client or the marketer should be clearly disclosed.
• Celebrities who make endorsements outside the context of traditional ads, such as on talk shows or in social media, should disclose any relationship with the advertiser or marketer.

I’d be very interested to get your opinions on these new rulings!