Download Ethics and Transparency in Social Media: The FTC

Disclosure of material connections:
what you need to know
David Kamerer, PhD, APR
Loyola University Chicago
Executive summary:
If you have a material connection with a product or service and
write about it, you must disclose that connection to your
readers.
Example:
You write a restaurant/food blog. You receive a free meal at
Joe’s Restaurant. If you write about your meal, you must tell
your readers that you did not pay for your meal.
This also extends to influencers.
Logos
Pathos
Ethos
Sources of information, old model:
Journalism
Advertising
Sources of information , new model:
Journalism
Advertising
Media relations
Owned media
Online
Social
Edelman model: media cloverleaf
Everyone is a publisher
Payola
Blogola
Advertorial
Info-tainment
Churnalism
Pay-per-play
The tragedy of the commons
Background
Edelman and Wal-Mart
2006
walmartingacrossamerica.com
“Working Families for Wal-Mart”
The FTC rules
16 CFR Part 255
“Guides Concerning the Use of Endorsements and
Testimonials in Advertising”
Dec. 1, 2009
•Restrictions on describing “typical” results in advertising
•Guidelines for celebrity product endorsers
•Guidelines for disclosing material connections between
advertisers and endorsers
Ann Taylor
Key takeway: it is the
advertiser’s responsibility
to assure disclosure, not
the blogger’s
Reverb Communications memo:
Reverb employs a small team of interns who are focused on managing
online message boards, writing influential game reviews, and keeping
a gauge on the online communities. Reverb uses the interns as a
sounding board to understand the new mediums where consumers are
learning about products, hearing about hot new games and listen to
the thoughts of our targeted audience. Reverb will use these interns
on Developer Y products to post game reviews (written by Reverb
staff members) ensuring the majority of the reviews will have the key
messaging and talking points developed by the Reverb PR/marketing
team.
Reverb Communications memo:
Internal User Reviews Process:
o Internal “User Reviews” o Pre-written by in house writers o
Positive reviews – not over the top – but endorsing the game as a
good product o Age ranges + 12 – 18 + 19 – 25 + 26 – 34 + 35 –
45 + 46+* Written from the angle of each age group including key
words that resonate with each audience * Reviews begin to go live on
day of launch on the iPhone storefront
Reverb Communications
Legacy Learning Systems
$5 million
sales
$250,000
fine
50 Cent
+ 290% in one day
$8.7 million
Codes of Ethics
PRSA’s Code of Ethics has a provision entitled “Disclosure of
Information,” based upon the principle is that “open
communication fosters informed decision making in a
democratic society.” The intent is “to build trust with the
public by revealing all information needed for responsible
decision making.”
The code states that a member shall:
Be honest and accurate in all communications.
Act promptly to correct erroneous communications for which
the member is responsible.
Investigate the truthfulness and accuracy of information
released on behalf of those represented.
Reveal the sponsors for causes and interests represented.
Disclose financial interest (such as stock ownership) in a
client’s organization.
Avoid deceptive practices.
IABC
Professional communicators do not accept undisclosed gifts or
payments for professional services from anyone other than a
client or employer.
WOMMA
Standard 1 – Disclosure of identity: A WOMMA member shall require
their representatives1 to make meaningful disclosures of their relationships or
identities with consumers in relation to the marketing initiatives that could
influence a consumer’s purchasing decisions.
Standard 2 – Disclosure of consideration or compensation received: A
WOMMA member shall require their representatives to disclose meaningfully
and prominently all forms of consideration or compensation they received
from the member, marketer or sponsor of the product or service. In other
words, WOMMA members shall not engage in marketing practices where the
marketer/sponsor or its representative provides goods, services, or
compensation to the consumer (or communicator) as consideration for
recommendations, reviews, or endorsements, unless full, meaningful, and
prominent disclosure is provided.
WOMMA, cont’d:
Standard 3 – Disclosure of relationship: A WOMMA member shall require
their representatives involved in a word of mouth initiative to disclose the
material aspects of their commercial relationship with a marketer, including
the specific type of any remuneration or consideration received.
Standard 4 – Compliance with FTC Guides: A WOMMA member shall
comply with the Guides Concerning Use of Endorsements and Testimonials in
Advertising promulgated by the Federal Trade Commission. See 16 C.F.R.
§§ 255.0–255.5.
How to: blogs
Disclose in-post
Site disclosure
How to: blogs
Would a single disclosure on my home page that “many of the products I
discuss on this site are provided to me free by their manufacturer” be enough?
A single disclosure doesn’t really do it because people visiting your site might
read individual reviews or watch individual videos without seeing the
disclosure on your home page.
Would a button that says DISCLOSURE, LEGAL, or something like that be
sufficient disclosure?
No. A button isn’t likely to be sufficient. How often do you click on those
buttons when you visit someone else’s site? If you provide the information as
part of your message, your audience is less likely to miss it.
Examples of in-post disclosures
Not quite a disclosure: c/o (“courtesy of”)
Inpost
Site
Statement
Site disclosures: two parts
A statement of acceptance:
A statement of independence:
(alllacqueredup.com)
Short disclosure policies
(putthison.com)
BlogWithIntegrity.com
By displaying the Blog with Integrity badge or signing the pledge, I assert that the
trust of my readers and the blogging community is important to me.
I treat others respectfully, attacking ideas and not people. I also welcome
respectful disagreement with my own ideas.
I believe in intellectual property rights, providing links, citing sources, and
crediting inspiration where appropriate.
I disclose my material relationships, policies and business practices. My readers
will know the difference between editorial, advertorial, and advertising, should I
choose to have it. If I do sponsored or paid posts, they are clearly marked.
When collaborating with marketers and PR professionals, I handle myself
professionally and abide by basic journalistic standards.
I always present my honest opinions to the best of my ability.
I own my words. Even if I occasionally have to eat them.
Microchannels: Twitter, Facebook, SMS
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 have the information they need to evaluate sponsored
statements – applies across the board, regardless of the advertising medium. A
hashtag like “#paid ad” uses only 8 characters. Shorter hashtags – like “#paid”
and “#ad” – also might be effective.
#paid
#ad
#client
#sponsored
Core values/social channels:
honesty
willingness to listen
transparency
openness
human voice
the people own your brand
Resurgence of journalism and other trusted
channels?
Content curation
Filters
For more information:
http://davidkamerer.com
(search for “disclosure”)
http://www.delicious.com/davidkamerer/disclosure
Thank you