FTC Wants Marketers to Know Legislation.
The bottom line, the FTC is pushing to make companies disclose any compensation received when promoting a product or company. While this is not a new law, the FTC wants marketers to know how it intends to interpret existing legislation.
…companies engaging in word-of-mouth marketing, in which people are compensated to promote products to their peers, must disclose those relationshipsWord-of-mouth marketing can take any form of peer-to-peer communication, such as a post on a Web blog, a MySpace.com page for a movie character, or the comments of a stranger on a bus.
This certainly impacts word-of-mouth marketing companies more than anyone else, but it could also effect affiliate marketers. And what about all of those pay-per-review sites that are popping-up. PayPerPost.com is going to have to change its model to force reviewers to disclose their relationship.
Andy Beal is an internet marketing consultant and considered one of the world’s most respected and interactive search engine marketing experts. Andy has worked with many Fortune 1000 companies such as Motorola, CitiFinancial, Lowes, Alaska Air, DeWALT, NBC and Experian.