Did you know that what you can and cannot say through social media like blogging, Twitter, and Facebook is regulated by law? The U.S. Federal Trade Commission has issued revised rules for endorsements, product reviews, and testimonials which
go into effect on December 1, 2009.
One of the new rules is that if you receive something in return for your promotion or endorsement of a product or in return for your "word of mouth" in social media, such as blogs, you must disclose that relationship. You have to openly state that you are receiving products for free in return for your review, or that you are Tweeting in return for a contest entry, or that you are receiving free supplies as a member of a Design Team in return for creating and sharing projects made with those supplies.
Failure to comply may result in warnings, cease-and-desist orders, and a fine of up to $11,000. Richard Cleland, Assistant Director of the Division of Advertising Practices at the FTC said,
in a recent article in Fast Company magazine, that the FTC is more interested in pursuing the advertisers who are encouraging word-of-mouth advertising through social media (that might be misleading because of a lack of disclosure) than going after individuals. But, the possibility is still there.
He suggests that social media users have to figure out ways to let other consumers know when their messages are sponsored. He also suggests that advertisers who encourage their customers to talk about them in social media put education programs in place to help individuals comply with the new rules.
So, if you have a relationship with a company or supplier that you talk about in your blog or on other social media, it is a good idea to disclose that relationship. Even if you think it is understood that say, being on a design team means you get free products, it is still a good idea to spell it out clearly. Just thought you'd like to know.
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