The Social Media Sharks

Where social media reigns supreme

Discretion With Social Media–Part II

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The FTC has many rules regulating online commerce. This blog outlines those which apply to social-media.

Advertisers online must now place their ads in accordance with the FTC Act.

The rules stipulate that, any product review which discusses an unusual result, must also disclose the normal performance of the good or service in question.

Connections between producers of social-media content, such as bloggers, and advertisers, must also be disclosed. You can’t promote something and receive compensation from the advertiser without stating so. Transgressions in this regard can receive up to an $11,000 fine; bending this rule is hardly worth the risk of financial and reputational loss.

Consumers won’t trust people who dissemble about their relationship with advertisers, and the truth on this issue will always come out. To be influential, conduct your social-media outlet with integrity or risk losing credibility and money.

Written by socialmediashark

March 30, 2010 at 1:53 pm

Posted in Uncategorized

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