The new FTC regulations that go into effect December 1st also extend to preferred vendor lists and directories, not just reviews of products on blogs.
This means that if you pay to advertise in a magazine's, website's or blog's vendor directory, and display one of the blog badges that shows you are a member, you have to disclose that you paid to be included. The blogs and sites that you advertise with will also have to disclose that their membership is paid advertising, regardless of how extensive their research and selection process may be. If a blog features your work in an editorial post, and you are one of their advertisers, they will have to disclose that as well, even if it is not a "sponsored post". If you include the badge or site's logo in your press and awards page, you will have to either disclose that it is actually a paid membership or you will have to remove it.
The FTC does not care if you pay to advertise with another company, but they do care that you are honest about money changing hands for the privilege of being listed on the other site. It is also important to note that these regulations apply not just to blogs, but to websites, Twitter, Facebook and other areas of social media as well.
The fine for each infraction is $11,000, so be sure to review your websites and blogs and make the necessary edits so that you are in compliance by the December 1st date.
Welcome to Think Splendid, the blog of Splendid Communications! We are an online media consultancy serving the wedding and hospitality industries. We help companies discover and maximize their online voice in order to effectively increase their brand presence and add to their bottom line.
We believe that social media is a return to old-fashioned roots of real conversations rather than a high-tech race to keep up with the next big thing. While the tools will always evolve, the need for businesses to communicate effectively and deepen relationships with their customers will remain.
Splendid Communications subscribes to the view that the world is a bakery that produces fresh opportunities each day and not a fixed pie where each person has to fight for the last crumb. The purpose of our blog is to encourage you to Think Splendid; both in business and in life.
We believe that social media is a return to old-fashioned roots of real conversations rather than a high-tech race to keep up with the next big thing. While the tools will always evolve, the need for businesses to communicate effectively and deepen relationships with their customers will remain.
Splendid Communications subscribes to the view that the world is a bakery that produces fresh opportunities each day and not a fixed pie where each person has to fight for the last crumb. The purpose of our blog is to encourage you to Think Splendid; both in business and in life.
photo by Melissa Jill
16 comments:
I totally understand the the disclosure issue with regards to a website or blog but does this mean if you say you like a particular vendor and/or product on Twitter or Facebook and they advertise with you it needs to be disclosed. Don't think I can do that in 140 characters. Your thoughts?
i'm thrilled about the new transparency rules!
What if you are a "registered" vendor? Meaning, you are part of their database but did not pay for a premier vendor spot?
Interesting! How did this come to be?
What is the most appropriate way to disclose that information? Does it need to be visible at all time near the badge?
Weehoo!! SO excited about this! Finally!
Wow, go transparency! I'm glad the FTC is realizing there is a problem and is doing their best to keep up with the times. Hopefully brides will be a little more discerning when they are comparing "preferred" lists from now on. Thanks for sharing this, Liene!
Hi Liene, yes, I would love to know your thoughts on the best ways to disclose this information tastefully...any suggestions?
Fabulous post, Liene... I am SO excited to see what happens when the new rules go into effect. We've been approached by dozens of blogs and magazines offering "Awardvertisements" and we've always declined. To me, there are few things more despicable than pretending a paid advertisement is some sort of accolade. Here's to a little bit of honesty, just in time for the holidays!
I went through a parallel version of this in my previous job when I worked in the student lending industry. Some of you may remember when the Attorney General of New York State, Andrew Cuomo, led a campaign to uncover "kick backs" in the student loan industry as they related to Preferred Lender Lists and other printed materials. Ultimately, it was business as usual for those of us who had always adhered to an ethical code of conduct and I think it will be the same in this instance as well.
Awesome! It's about time. Now, if we can just extend these rules to the federal government...
Hi Liene,
I would love to hear how best to disclose this info?
and also, what about if we participate in any affiliate programs, such as minted.com.
Thanks!
I was just referred to your informative and well-written blog by a friend - I'm excited about this news about the FTC regulations and how it might level the playing field (assuming that consumers will read the finer print, which may be a big assumption). Thanks so much this resource!
Thanks so much for sharing this with us, Liene, very important info!
Thanks for the info! I think a few others have asked, but do you have any ideas/recommendations on how to post this disclosure?
Yes, in regards to Jessica's question, can you provide us examples of how to post these disclosures in regards to affiliates, to people advertising on your website, etc.
Thanks.
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