The Scoop on PromotionsProject Support Team Blog

June 5th, 2009

Whatever happened to freedom of speech?

I recently read an article titled “Advertisers brace for online viral marketing curbs”. The article speaks to the possibility of the Federal Trade Commission (“FTC”) revising guidelines on endorsements and testimonials submitted by bloggers and users of social networking sites who receive samples of companies’ products. The main target of the new guidelines appears to be the widespread practice of viral marketing in which companies recruit non- employees to talk up products in exchange for samples or promotions.

The revised guidelines (now under review and expected to be adopted) would hold companies liable for untruthful statements made by bloggers and users of social networking sites who receive samples of their products. The guidelines would also hold bloggers liable for the statements they make about products. For example, If a blogger received a free sample of skin lotion and then incorrectly claimed the product cured eczema, the FTC could sue the company for making false or unsubstantiated statements. The blogger could also be sued for making false representations.

Check out the FTC website to follow the story as new information is obtained <http://www.ftc.gov/>.

Gelles, David. “Advertisers brace for online viral marketing curbs.” 2009. Online. The Financial Times Limited 2009. 2 Apr. 2009 < http://www.ft.com/cms/s/0/9a58f44c-1fae-11de-a1df-00144feabdc0.html>.