New Ftc Rules In Effect [affiliatemarketingsblog.blogspot.com]

New Ftc Rules In Effect [affiliatemarketingsblog.blogspot.com]

1 Pursuant to this notice, the Electronic Privacy Information Center (“EPIC”), and Consumer Watchdog submit these comments and recommendations to ensure that the proposed rule ensures that carriers adequately protect the privacy of consumers' personal ... EPIC Calls on FCC to Require Mobile Phone Carriers to Protect Privacy

The age of social media and blogging has arrived and with it the US FTC or Federal Trade Commission has found it necessary to re analyse and fine tune rules governing the relationships between advertisers, endorsers and product reviewers.

Recently, we have seen a mushrooming of popular social network sites such as Facebook, Twitter, MySpace, LinkedIn, Orkut and much more. These sites have emerged as an ideal and perfect platform for companies to get celebrities to endorse their products and to encourage individuals to talk about products. This advertising method can be cloaked in an authentic appearing veneer as they seem to be from a genuine, individual consumer when they are really part of an arrangement between reviewer and seller. Certain companies have even gone to the extent of setting up independent appearing product review blogs.

In order to crackdown on misuse of the Internet platform by advertisers, FTC has announced its intentions of completely revising the rules regarding advertising testimonials and endorsements that have been in place since 1980. The new regulations will be aimed specifically at the usage of social media sites such as Twitter and Facebook by bloggers and advertisers for promoting their business.

According to the FTC, starting from December 1, 2009:

Connections with advertisers must be disclosed by bloggers reviewing products. Details such as whether any payment was made to them by the company or whether they received any free products must be disclosed.
Celebrities promoting company products on sites such as Twitter or on talk shows must disclose the nature connection they have with the company.

The FTC also plans to eliminate the trend of advertisers reporting success with products such as for instance, weight loss supplements, when they really have not experienced that success.
This new set of rules, which will govern Internet just like other media forms such as print and television, will have a significant impact on both online retailers as well as bloggers. Retailers will need to o be extra careful in posting their product reviews and using social networking sites for promotions.

Bloggers will lose out on the continuous flow of give aways from companies.
Celebrities will no longer be able to accept huge amount of money for paid endorsements and tweet about product they tried out.
Those who have made a business of writing paid reviews may be significantly affected.

There is a widespread opposition among online marketers to the US FTC blog disclosure rules. Marketing groups say that even if there is no control over the content of the blogs for advertisers, FTC may still consider their connection with the blogger material if a product is offered to them. Many online retailers feel that instead of creating a sudden seismic shift, it would have been preferable if the FTC could have spent more time to know exactly how viral marketing works and had requested more input from industry experts.

The US FTC blog disclosures rules will have a substantial impact on bloggers who have been benefiting from helping companies reach out to consumers. Suggest New Ftc Rules In Effect Issues