Endorsement-based Advertising and the FTC

The continuing issue of user endorsements--read the entire article (excerpt below) at the link below:

Endorsement-based Advertising Subject to Law Enforcement by FTC | Pillsbury Social Media, Entertainment & Technology Team - JDSupra: "User endorsements are becoming a more and more popular form of "advertising" as the use of social media and user-generated content continues to increase. These endorsements often take the form of reviews via blogs or Yelp, but can also include other less conspicuous communications. These endorsements can be quite powerful. As a result some companies will compensate users for giving them. In some cases, the compensation can bias the endorsement. While this is not illegal, it creates issues that need to be considered. In some cases, user endorsements leverage social media features. For example, a company's website may include a button that, when clicked by a user, causes a positive message about the company to be posted via the user's Facebook, LinkedIn, Twitter, or other social media account. When there is compensation for that endorsement--even soft compensation such as through loyalty program points or virtual goods--federal laws may come into play. . . . "

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