The Federal Trade Commission (FTC) proposed the first changes to their “Guides” since 1980 concerning the use of endorsements and testimonials in advertising. These approved changes went into effect on December 1, 2009 and are drastic enough to alter the way companies market their products and services.
Advertising laws will now have to follow these “Guides”, which provide a set of rules that professionals are to adhere in order to avoid deceptive advertising. The Guides also outlines what the FTC considers deceptive and how exactly they have come to this conclusion.
The biggest change featured in the updated guidelines are for celebrity endorsers. Before the changes, celebrities were exempt from disclosing the fact that a brand was paying them money to endorse their product or service. It was just assumed that people knew the celeb was receiving some sort of monetary reward for their endorsement. The rule for the disclosure of this info remains the same for traditional media but now new media is recognized and required to disclose connections as well.
FTC has always required that celebrities disclose their relations with an advertiser. What is new is that this rule is to be applied to the world of social media where it is not as easy to spot a celebrity endorsement. The Guides needed to be updated as it was last updated long before social media blew up and bloggers had the power to influence.
I think these updates were long over due and will have a positive impact on the reputation of public relation professionals by placing a priority on transparency in the business of celebrity endorsements.
emiddl1
