Here in Fort Collins, Colorado we are treated each week to a casual, social media training session organized by Nick Armstrong of WTF Marketing (@imnickarmstrong) in what’s known as the Digital Gunslingers meet-up. This past week we were treated to a session organized by nick featuring local lawyer, Kevin Houchin who discussed the new FTC Site Compliance rules (see http://www.ftc.gov/opa/2009/10/endortest.shtm) which are coming into effect December 1, 2009.
Given that our meet-up group is made up of a number of people, most of whom are active with social media and blogging, this topic is quite important to us as the rules affect anyone who is providing testimonials, endorsements, or is even involved with affiliate marketing programs. These new guidelines are coming at us very fast and are likely highly mis-understood by the public. People that need to be aware of the compliance regs include but are not limited to: speakers, authors, affiliate marketers, bloggers, information product creators, health care professionals, advertising and PR agencies, coaches, celebrities, and others. If you inform, influence, promote or endorse any products then you need to be aware of this topic.
Kevin Houchin (@kevinhouchin), a local attorney specializing in intellectual property (http://www.houchinlaw.com/) ran a short intro session for us, describing the who, what, where, when, why, and how of the new regulations… obviously loads to try and digest in 60 minutes! Kevin noted that the biggest changes that will take place is the transition from being truthful to being transparent. Of particular interest are those common endorsements that we so frequently see (think blogs) where the author has likely received some form of shwag for his/her review or endorsement. Also of interest is that affiliate arrangements need to be made clear and visible to readers and those that are providing “expert” reviews must make it clear that they are indeed a “bonafide” user (so I gather, simply picking up a new phone and re-publishing a few specifications masquerading as an expert review is not going to fly). Reviews will indeed have to be done by actual, qualified/bonafide users of a product, application, or service… interesting!
Kevin pointed out that there will be a huge need in the future for market researchers and analysts to help companies come up with some actual, factual research findings. This will be in response to those annoying claims like “use this product and you’ll lose 50 lbs”… such claims simply won’t fly any longer, unless valid research proves that indeed, users can expect to see such results.
Kevin Houchin discussing the new FTC Compliance Rules for Bloggers (and others)
This topic is much deeper than what can be explained in 60 minutes or in a short review like this, however, what’s important moving forward according to Kevin is that writers, bloggers, publishers should look at the rules, attempt to understand them, and make an effort to try and be in compliance. A good starting point would be for content creators to create a “discloses page” or perhaps a “site compliance page” where relationships, affiliations, partnerships, details of advertisers and sponsors are conveyed and made clear to readers… this is a good starting point and could help to convey that effort has been made to address the compliance regulations.
For more information on this topic check out some material that Kevin has made available a “site compliant toolkit” to help users become compliant and stay compliant. See site compliant.com
The FTC regulations are not only of interest to writers, bloggers, and the like but also to any company that uses endorsements or attempts to market in any way to US consumers (this includes International firms marketing I the US).
For more on this I suggest you connect with Kevin Houchin http://twitter.com/kevinhouchin
For information on NOCO social media meet-ups see http://twitter.com/imnickarmstrong or register for upcoming classes at http://classes.digitalgunslinger.com/
Please note: Myslef (G. Letham, GISuser or Spatial Media LLC are not associated in any way with Nick Armstrong, WTF Marketing, or Kevin Houchman nor have we been paid in any way or form to inform you on this topic! I am not attempting in any way to provide legal advice or expertise here… if you think the new FTC rules could affect you in any way I suggest you search the FTC website for more details and/or consult with your local IP attorney. It seems at a glance that the FTC will have an impossible task policing this (good luck to you!), however, you don’t want to be one of the test cases that they elect to make an example of! Hey FTC, I suggest perhaps you look at some of the sleaze-bag ads that come out of the financial market segment, real estate industry, or health/medicine fields to start.
See also FTC Publishes Final Guides Governing Endorsements, Testimonials FTC Publishes Final Guides Governing Endorsements, Testimonials http://www.ftc.gov/opa/2009/10/endortest.shtm