(Mini News) FTC updates regulations and clarifies disclosure rules for content creators and for social media sites

[BluntestTech]

      FTC (Federal Trade Commission) updated and clarified its rules and regulations for regarding Youtube,Twitch, Twitter and other social media sites.

  

    I am first going to say that i do not fully know what changes were made but it seems like FTC updated and clarified its regulations and diclosure rules on 2nd of June 2015.

 

  On personal note, i would say these changes are probably a good thing and likely long overdue.

 

   These updates and clarifications included statement regarding Twitter that starting a tweets that include promotional or sponsored content with "Ad" or "#Ad" would “likely be effective” to inform that a tweet is an advertising message (previous version stated it “might be effective”). FTC also repeats its previous guidance that there is no specific wording necessary for Twitter disclosures, explaining that it will assess sufficiency of disclosure based on the principle that the consumer must receive the necessary information to understand that message is advertisement message and evaluate sponsored message.

 

 

 

What about a platform like Twitter? How can I make a disclosure when my message is limited to 140 characters?

The FTC isn’t mandating the specific wording of disclosures. However, the same general principle – that people get the information they need to evaluate sponsored statements – applies across the board, regardless of the advertising medium. The words “Sponsored” and “Promotion” use only 9 characters. “Paid ad” only uses 7 characters. Starting a tweet with “Ad:” or “#ad” – which takes only 3 characters – would likely be effective.

 

 

  Updated and clarified FAQ adds section to social networking sites, stating consumers are allowed to write about product that they like without making disclosures, as long as they are not being rewarded for it. 

 

     FAQ also states that “However, if you’re doing it as part of a sponsored campaign or you’re being compensated – for example, getting a discount on a future purchase or being entered into a sweepstakes for a significant prize – then a disclosure is appropriate.”  This means that FTC acknowledges that “we don’t know at this time how much stock social network users put into “likes” when deciding to patronize a business, so the failure to disclose that the people giving “likes” received an incentive might not be a problem."  

 

  FAQs has section regarding fake likes “An advertiser buying fake “likes” is very different from an advertiser offering incentives for “likes” from actual consumers. If “likes” are from non-existent people or people who have no experience using the product or service, they are clearly deceptive, and both the purchaser and the seller of the fake “likes” could face enforcement action.” 

 

 

 

 

ENDORSEMENTS BY INDIVIDUALS ON SOCIAL NETWORKING SITES Many social networking sites allow you to share your interests with friends and followers by clicking a button or sharing a link to show that you’re a fan of a particular business, product, website or service. Is that an "endorsement" that needs a disclosure?

Many people enjoy sharing their fondness for a particular product or service with their social networks.

If you write about how much you like something you bought on your own and you’re not being rewarded, you don’t have to worry. However, if you’re doing it as part of a sponsored campaign or you’re being compensated – for example, getting a discount on a future purchase or being entered into a sweepstakes for a significant prize – then a disclosure is appropriate.

I am an avid social media user who often gets rewards for participating in online campaigns on behalf of brands. Is it OK for me to click a “like” button, pin a picture, or share a link to show that I’m a fan of a particular business, product, website or service as part of a paid campaign?

Using these features to endorse a company’s products or services as part of a sponsored brand campaign probably requires a disclosure.

We realize that some platforms – like Facebook’s “like” buttons – don’t allow you to make a disclosure. Advertisers shouldn’t encourage endorsements using features that don’t allow for clear and conspicuous disclosures. However, we don’t know at this time how much stock social network users put into “likes” when deciding to patronize a business, so the failure to disclose that the people giving “likes” received an incentive might not be a problem.

An advertiser buying fake “likes” is very different from an advertiser offering incentives for “likes” from actual consumers. If “likes” are from non-existent people or people who have no experience using the product or service, they are clearly deceptive, and both the purchaser and the seller of the fake “likes” could face enforcement action.

I posted a review of a service on a website. Now the marketer has taken my review and changed it in a way that I think is misleading. Am I liable for that? What can I do?

No, you aren’t liable for the changes the marketer made to your review. You could, and probably should, complain to the marketer and ask them to stop using your altered review. You also could file complaints with the FTC, your local consumer protection organization, and the Better Business Bureau.

 

 

Updated FAQ also reminds businesses that use social media to arrange contests that they must disclose clearly that post is being made as part of a sweepstakes or contest.

 

 

 

SOCIAL MEDIA CONTESTS My company runs contests and sweepstakes in social media. To enter, participants have to send a Tweet or make a pin with the hashtag, #XYZ_Rocks. (“XYZ” is the name of my product.) Isn’t that enough to notify readers that the posts were incentivized?

No. It’s likely that many readers would not understand such a hashtag to mean that those posts were made as part of a contest or that the people doing the posting had received something of value (in this case, a chance to win the contest prize). Making the word “contest” or “sweepstakes” part of the hashtag should be enough. However, the word “sweeps” probably isn’t, because it is likely that many people would not understand what that means.

 

 

 

Source: https://www.ftc.gov/tips-advice/business-center/guidance/ftcs-endorsement-guides-what-people-are-asking