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FTC Moves to Unmask Word-of-Mouth Marketing: Endorser Must Disclose Link to Seller

Screenshot - 12_12_2006 , 6_25_01 PM_thumb.png
"FTC Moves to Unmask Word-of-Mouth Marketing: Endorser Must Disclose Link to Seller"

The Federal Trade Commission yesterday said that companies engaging in word-of-mouth marketing, in which people are compensated to promote products to their peers, must disclose those relationships.
...
Word-of-mouth marketing can take any form of peer-to-peer communication, such as a post on a Web blog, a MySpace.com page for a movie character, or the comments of a stranger on a bus.
...
The group cited a 2002 Wall Street Journal article on a marketing campaign by Sony Ericsson Mobile for its T68i mobile phone and digital camera. The initiative, called "Fake Tourist," involved placing 60 actors posing as tourists at attractions in New York and Seattle to demonstrate the camera phone. The actors asked passersby to take their photo, which demonstrated the camera phone's capabilities, but the actors did not identify themselves as representatives for Sony Ericsson.

Commercial Alert also singled out Tremor, a marketing division of Procter & Gamble, which has assembled a volunteer force of 250,000 teenagers to promote the company's products to friends and relatives.


Read the original Washington Post Article..


Not a minute too soon - there should be laws requiring full and clear disclosure on all such relationships.
posted by mouser donate to mouser
discovered on http://www.joystiq.com
(permalink) (read 2 comments)


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