FTC Article: Planning a Social Media Marketing Campaign? Read this first.
November 13, 2018
In their article on November 13, 2018, the FTC outlines essential guidelines for planning a social media marketing campaign, emphasizing the importance of truthfulness and transparency in advertising. A case involving Creaxion Corporation and Inside Publications highlights significant violations of these principles when they promoted a mosquito repellent during the Zika virus outbreak.
Key points from the FTC's guidance include:
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Truthful Advertising. All marketing messages, including endorsements and social media posts, must accurately represent the relationship between endorsers and the product. Misleading consumers about the nature of endorsements or reviews can lead to legal consequences.
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Disclosure of Relationships. Endorsers must clearly disclose any material connections with advertisers. This applies even to well-known figures; if their endorsement isn't evidently paid, it must be explicitly stated.
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Distinction Between Ads and Editorial Content. Paid promotions should not resemble independent editorial content. The FTC has a longstanding policy against advertisements that mislead consumers into believing they are impartial.
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Avoiding Misleading Reviews. Companies should refrain from incentivizing employees or affiliates to post reviews without disclosing their connections to the brand, as this creates a false impression of unbiased consumer feedback.
The FTC's complaint against Creaxion and Inside Publications revealed that their marketing efforts included undisclosed endorsements from athletes and disguised paid content as independent journalism. The proposed settlements require the companies to refrain from such misrepresentations in the future, ensure clear disclosures, and monitor endorsers' activities.
In summary, marketers must take responsibility for compliance with advertising laws, clearly disclose connections, differentiate ads from editorial content, and avoid deceptive review practices to build trust and maintain legal standards in their campaigns.
For more information, see here: https://www.ftc.gov/news-events/blogs/business-blog/2018/11/planning-social-media-marketing-campaign-read-first
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