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FTC Reveals New and More Strict Guidelines for Marketers

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The Federal Trade Commission has made its guidelines tougher for traditional media and internet marketing.

From now on, advertisers who use atypical examples, like someone losing over 100 pounds from a diet pill, also need to provide typical examples. The newly revealed guidelines, which were announced October 5th, 2009, also have some requirements for celebrity endorsements. Celebrities now need to disclose their association with advertisers, if any, outside of the context of their traditional media ads. This includes appearances on talk shows and online social media connections. Celebrity endorsers and advertisers are now liable for any false or unsubstantiated claims.

The FTC has also place restrictions on social media advertisers, such as bloggers, online marketing companies, and word-of-mouth marketers. All three must now reveal if and when they received any material considerations, such as monetary compensation or free products, for their endorsements. Advertisers must also reveal if they paid for the research that backs up their claims.

Of course the FTC has the consumers in mind when making these new rules and regulations. The new guidelines will increase transparency for consumers. However, the increased scrutiny upon online marketing companies will increase costs, which will most likely be passed onto the consumer.

–Source:  Broadcasting & Cable, 10/05/09

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