FTC endorsement regulations already apply online
The Associated Press recently announced that the Federal Trade Commission’s “Guide Concerning the Use of Endorsements and Testimonials” will be revised soon. All week, articles have been popping up across the Internet reporting that these changes will introduce regulation of blogs and bloggers by the FTC.
What they fail to report, is that FTC regulations already apply to bloggers and their blogs. In fact, these regulations apply to use of email, Twitter, Facebook, MySpace, just to name a few.
Blogs and discussion boards are both discussed in the FTC’s “Guidelines Concerning the Use of Endorsements and Testimonials in Advertising, Notice of proposed changes,” but not as newly regulated media. The pending changes to the guide introduce new example scenarios intended to illustrate how FTC regulation may apply in some situations. The guide is not the definition of the law, nor does it encompass every possible scenario in which the FTC can take action. The sole purpose for the guide is to act as, well, a guide.
It appears that some journalists covering the pending changes to the FTC guide failed to do any actual research into the law behind the guide, and how it applies to the Internet.
“This would, for the first time, bring bloggers under FTC guidelines that ban deceptive or unfair business practices.”
- Caroline McCarthy, CNET — “Report: FTC to go after blogger freebies”
While the pending changes will clarify policy as it relates to “new media” such as blogs, the laws behind the guide haven’t actually changed. Spending just a few minutes on the Federal Trade Commission website turned up plenty of information related to how FTC regulation applies to the Internet.
“The Internet is connecting advertisers and marketers to customers from Boston to Bali with text, interactive graphics, video and audio. If you’re thinking about advertising on the Internet, remember that many of the same rules that apply to other forms of advertising apply to electronic marketing. These rules and guidelines protect businesses and consumers — and help maintain the credibility of the Internet as an advertising medium.”
“The FTC Act prohibits unfair or deceptive advertising in any medium.”
- Excerpts from “Advertising and Marketing on the Internet: Rules of the Road”
This means that any advertisement, endorsement, or testimonial on the Internet should already be in compliance with FTC regulations. With more and more attention being paid to online marketing by the agency, Internet marketers who have long enjoyed the lack of enforcement would do well to attempt compliance with the law.
“The same consumer protection laws that apply to commercial activities in other media apply online. The FTC Act’s prohibition on ‘unfair or deceptive acts or practices’ encompasses Internet advertising, marketing and sales. In addition, many Commission rules and guides are not limited to any particular medium used to disseminate claims or advertising, and therefore, apply to online activities.”
“In addition, the Guides Concerning the Use of Endorsements and Testimonials in Advertising apply to endorsements, which are defined as any advertising message… [that] consumers are likely to believe reflects the opinions, beliefs, findings, or experience of a party other than the sponsoring advertiser. The Guides refer to advertising without limiting the media in which it is disseminated, and therefore, encompass online ads.”
- Excerpts from the FTC guide, “Dot Com Disclosures” [PDF]
While I certainly think the FTC will be taking a more active role in monitoring online advertising practices, the idea that such practices are only just now being regulated by the FTC is simply not true.
I am forced to wonder if Facebook’s decision to crack down on paid status updates relates to the FTC’s new-found interest in web marketing oversight. Perhaps we will see Twitter follow suit, and ban sponsored Tweets. I certainly hope so.