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