FTC to Social Marketers: Keep it Real, or We'll Take Action

MediaBizBloggers, 9/1/10

After a lengthy process of review and comment, the FTC issued new advertising guidelines late last year that cover social media and word of mouth marketing. The goal was to make clear that just as the Commission can take action against deceptive, fraudulent, or unfair business practices in advertising, they will do so against deceptive practices in social media as well.

And last week the FTC issued its first rebuke under the new guidelines, settling a case against PR agency Reverb, which it charged had engaged in deceptive advertising by having employees pose as ordinary citizens while posting game reviews online and not disclosing that the reviews came from paid employees working on behalf of the game developers.

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