Entries Tagged 'WOMMA' ↓

Today the Federal Trade Commission (FTC) published updated Advertising guidelines calling for increased transparency with respect to online marketing and advertising. Specifically, the FTC made changes to the“Use of Endorsements and Testimonials in Advertising”. In its commentary, the FTC referenced and adopted the Word-of-Mouth-Marketing Association (WOMMA) guidance in several instances, looking favorably upon the Association’s own Ethics Code, and adopting WOMMA’s suggestion that only “sponsored” communications should fall within the scope of the Guides. Therefore, adherence to the WOMMA Ethics Code is a critical first step for businesses and marketers in complying with the updated FTC Guides.

As a active member of the WOMMA ethics group this is fantastic validation of the hard work we have doing with member input over the past year.  Several fundamental principles of WOMMA’s Ethics Code, such as the importance of transparency, disclosure and honesty across all media, are now required by the FTC. The WOMMA organization is a firm believer that the updated Guides will usher in a new generation word-of-mouth of viral and social media marketers who place the highest priority on ethical practices.

Some additional highlights from the WOMMA press release include:

-  WOMMA, President Elect Paul Rand explaining, “The greatest value we can provide to our 400-plus members is helping them navigate the uncharted waters of social marketing. WOMMA takes great pride in not only equipping members with a venerable compliance ‘how-to,’ but also in the collaborative way we went about influencing policy, itself.”

- WOMMA General Counsel Anthony DiResta of Manatt, Phelps & Philips adding, “These new FTC Guides constitute a sea change for certain marketing practices that are widespread and effective in all industry sectors. It’s clear that confusion will result in their application by bloggers and brands alike, and there are even rumblings that legal challenges may be brought. Thus, in this period of uncertainty, meaningful self-regulation and practical clarity are essential.” Diresta makes one point clear for marketers, “Transparency and honesty are essential in communications by consumers or experts in all media formats.

- WOMMA is confident these Guides will also help the Association enforce its own Ethics Code. According to Joe Chernov, chair of WOMMA’s Member Ethics Advisory Panel, the Association’s primary focus is on educating members on best practices; however, it must also ensure its members are adhering to those practices. Chernov concluded, “Marketing ethics is no longer an ideal. It is now a mandate.”

Over the next several months, WOMMA will lead industry discussions on the topic of what constitutes adequate and meaningful disclosure. This dialogue will culminate in November at the association’s annual Summit in Las Vegas, when WOMMA will dedicate educational sessions to help marketers understand and adhere to these new Guides. In fact, Mr. Chuck Harwood, the FTC’s Deputy Director of the Bureau of Consumer Protection, is a featured speaker.

For those in the advertising industry that use word of mouth, viral marketing, or social media platforms, WOMMA’s Ethics Code is an excellent and practical way to evaluate compliance with these new Guides.

Blake Cahill

Visible Technologies

Proposed changes on the horizon to Federal Trade Commission (FTC) guidelines could further impact social media marketing while radically altering some marketers practices of using third-party spokespeople for online brand marketing. Michael Lasky, a senior partner at Davis & Gilbert LLP, a New York law firm that specializes in advertising and communications law says “Agencies and clients, especially those working in the social media space, must understand that the FTC’s efforts to address deceptive practices can create liability and exposure.”

Additions and modifications now under consideration by the FTC are, “Guides Concerning the Use of Endorsements and Testimonials.” It is expected that a final ruling on the Guides will occur sometime later this summer or early fall. Behind the proposed changes is what Lasky terms, “The 10 Commandments of commercial marketing as found in Section 5 of the FTC Act — summed up as — thou shall not commit a false or deceptive practice.” The FTC is working to address this: A blogger or spokesperson’s failure to disclose a fact or event that could alter the consumer’s decision regarding a product or service.

Now, I know some agencies and marketers may have tried this approach of non-disclosure but most cases have been very unsuccessful and actually created more bad that good for the brand in question. The practice of full disclosure for social marketing is really the only way to really operate otherwise it just rooted out as not genuine and in many cases deceptive. I think part of the great value of the social graph is that it self-polices on much of this. Also, organizations like WOMMA publish guidelines and best practices for agencies and marketers in addition to have formal process for grievance filing when tactics are in question.

Brands and agencies should examine the FTC’s efforts understand their meanings and interpretations and to avoid problems down the road. A clear liability can and will arise when and if marketers pay bloggers or provide other “consideration” such as free products and services in return for a favorable post. Disclosure is necessary.

Agencies and clients, if they haven’t already, should adopt written guidelines that come into play when any “consideration” is involved. The guidelines must work explicitly to “make it clear the company wants the blogger to disclose whether any compensation or any other item of tangible value, such as free product, has been received in return for a favorable post or review,” said Allison Fitzpatrick, associate counsel at Davis & Gilbert LLP.

I would encourage agencies and marketer to go the WOMMA site to familiarize themselves with the organization and much of the guidelines and best practices they have organized around this topic.

Blake Cahill

Visible Technologies

As a member of WOMMA and its Ethics Advisory group, I am pleased to announce that the Board of Directors of WOMMA have recently approved some changes to the Ethics Code, some which our working group and WOMMA members had proposed.

The main changes to the code focus on the Honesty of Relationship, Opinion and Identity, which included:

• Practicing openness about the relationship between consumers and marketers. Consumers engaged in a word of mouth program should disclose their relationship with marketers in their communications with other consumers. We don’t tell consumers specifically what to say, but we do instruct them to be open and honest about any relationship with a marketer and about any products or incentives that they may have received.
• Requiring marketers to disclose their relationships with consumers in relation to word of mouth initiatives.
• Requiring marketers to effectively monitor disclosure of consumers involved in their word of mouth initiatives
• Standing against marketing practices whereby the consumer is paid cash by the manufacturer, supplier or one of their representatives to make recommendations., reviews or endorsements
• Requiring that consumers 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 received.
• Requiring that consumers involved in a word of mouth initiative to disclose the source of product samples or incentives received from a marketer.
• And finally complying with FTC regulations that state: “When there exists a connection between the endorser and the seller of the advertised product which might materially affect the weight or credibility of the endorsement (i.e., the connection is not reasonably expected by the audience) such connection must be fully disclosed.”
• The entire code is viewable here: WOMMA Ethics Code

Blake Cahill
Visible Technologies

As a member of the WOMMA (Word-of-Mouth Marketing Association) one of the greatest values they bring to space is not just in evangelizing the best practices, brands, and practitioners of Word of Mouth but also educating on the changing landscape. Last week, WOMMA held a members-exclusive call to discuss their perspective on the FTC Guide Concerning the Use of Endorsements and Testimonials in Advertising.

The key take-aways from this call included the following:

• The FTC is proposing some of the most significant changes and evolutions to the Guide since it was first introduced in 1972. The changes impact everyone in the advertising, marketing, public relations, and WOMM industries. It is critical for our businesses and our clients’ businesses, to truly understand the implications of these changes.
• WOMMA continues to work closely with the FTC to provide feedback and guidance on these areas, particularly in relation to transparency in WOMM and social media and honesty in communication to the consumer. Compliance in these areas is paramount.
• The WOMMA Ethics Code provides a clear and straight forward way to understand and assure adherence to the Guide.

You can download the audio at http://www.womma.org. WOMMA will be holding an Open Call in mid-March for members, member clients and their legal compliance staff to be briefed about what the changes to the Guide mean and how companies can proactively educate their staff. If your not a member of WOMMA, I would strong encourage your brand or agency to join to be kept up to date about the changing landscape.

Blake Cahill
Visible Technologies

Did you know that next month you can find me speaking at WOMM-U? May 8 and 9 I will be in Miami Florida enjoying the weather and the 2-day comprehensive and interactive educational experience that is WOMMA’s Word of Mouth Marketing University.

Let me know if you are planning on attending. I’m looking forward to a great event.

Blake Cahill

Visible Technologies