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Small Business Consulting- New FTC Internet Marketing Guidelines in Effect

December 8th, 2009 by admin 1 Comment1 Comment

Under the revised Guides, advertisements that feature a consumer and convey his or her experience with a product or service as typical when that is not the case will be required to clearly disclose the results that consumers can generally expect. In contrast to the 1980 version of the Guides – which allowed advertisers to describe unusual results in a testimonial as long as they included a disclaimer such as β€œresults not typical” – the revised Guides no longer contain this safe harbor.

The revised Guides also add new examples to illustrate the long standing principle that β€œmaterial connections” (sometimes payments or free products) between advertisers and endorsers – connections that consumers would not expect – must be disclosed. These examples address what constitutes an endorsement when the message is conveyed by bloggers or other β€œword-of-mouth” marketers. The revised Guides specify that while decisions will be reached on a case-by-case basis, the post of a blogger who receives cash or in-kind payment to review a product is considered an endorsement. Thus, bloggers who make an endorsement must disclose the material connections they share with the seller of the product or service. Likewise, if a company refers in an advertisement to the findings of a research organization that conducted research sponsored by the company, the advertisement must disclose the connection between the advertiser and the research organization. And a paid endorsement – like any other advertisement – is deceptive if it makes false or misleading claims.

Read the entire article at http://ftc.gov/opa/2009/10/endortest.shtm

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Filed under: business management techniques, entrepreneur coaching, internet marketing, small business consulting
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One Response to “Small Business Consulting- New FTC Internet Marketing Guidelines in Effect”  

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  1. 1 Nilda Sensor on Mar 14th, 2010 said:

    Thanks for discussing such an insightful article with all of us. I’ve bookmarked your blog will come back for a re-read again. Keep up the good work.

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