Several people replied to Marcy saying they thought promoting the free goods without disclosing it was unethical. More than being unethical, it is illegal. Here is what the FTC (Federal Trade Commission) regulations and U.S federal law have to say about the matter:
*If you are receiving a wedding service for free or at a deep discount, and you post about that vendor anywhere online, you have to disclose that you received the service for free or at a discount. The fine for failing to do so can be up to $11,000 per infraction.
*If you are a vendor who provided the service for free or a deep discount and it is not disclosed in the posts written about you, you can ALSO be fined up to $11,000 per infraction. The onus does not just rest with the recipient. The FTC can fine one or both of you; you are NOT off the hook just because you did not post about it yourself.
*You must also disclose "material connections" or free products you may receive or give, not just services.
*These regulations apply not just to blogs, but to Facebook and Twitter updates, and other social media platforms as well.
*The FTC regulations are retroactive to October 5, 2009 when they took effect and anyone can report a violation. You may think you can get away with it, but if you have a competitor or anyone with something to gain by you being reported, you could be in trouble.
The FTC implemented these regulations to bring more transparency to business interactions and the consumer. You can read the full guidelines here. If you're thinking about giving someone a free or discounted service or product because it could result in great a great press opportunity for you, make sure that both you and the recipient are committed to disclosing that fact before you donate your time and service so that you can avoid any legal issues.
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2 comments:
Thanks Liene. I think it's important that clients know this as well. I've had a few brides who are in PR or writers and have asked me to discount my pricing as 'I can get you some press'. Having been a publicist for years, I know that nothing is for sure until it's on the stands so no, I don't discount thinking I might get some PR. It's a disservice to everyone.
These new FTC rules are meant to keep everyone on the up and up. Guess until someone gets 'busted' with a whopper of a fine, people will still try to get away with freebies/discounts in exchange for some ink or screen time.
out of curiosity what about when we do a wedding tv show and they make you sign an NDA. they obviously don’t want the general public to know that the "fantasy" wedding they are airing was all sponsored by the vendors for air time vs the couple paying for it.
thoughts?
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