Social Media Disclosure 101
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Social Media Disclosure 101
Disclosure. It’s a topic often forgotten among most social media consulting agencies and small business owners alike but to ignore the new rules is to play a game of Russian Roulette with your marketing campaign. Here is what you need to know about FTC disclosure guidelines.
FTC Disclosure Overview
A full review of FTC disclosure requirements is beyond the scope of this site but suffice to say, it’s an absolute essential to understand compliance issues. Originally, the FTC created disclosure guidelines as a way to protect the public from unscrupulous advertisers, paid media representatives and bought “testimonials”. Of course, this was more than two decades ago…long before the advent of the Internet much less social media.
When Disclosure is Required
According to the FTC guidelines, disclosure is required when “there is a connection between the endorser and the seller of a product or service”. Hmmm…that seems a bit vague doesn’t it?
Most media pundits and advertisers agree. The working definition is that disclosure is absolutely essential if there is any type of contractual obligation between the product or service and a written or verbal review, testimonial or promotion. Essentially, if there is any relationship, it’s a good idea to disclose.
Understanding Endorsement
An endorsement can be provided by anyone including an individual, group or organization. It can be formal or informal. A testimonial may also be a form of endorsement if it encourages the general public to use or purchase a product or service.
What is a Disclosure?
Disclosure doesn’t need to be complicated; it can be as simple as a quick note explaining the nature of the relationship between the product or service and the reviewer. On the other hand, disclosure must fulfill certain criteria including:
1. Be clear and conspicuous.
2. Explain the nature of the relationship (paid, partnership, investor, etc…).
Who is Required to Disclose?
FTC disclosure guidelines apply to nearly everyone including big business brands and bloggers, small business owners and social media consultants.
What are the Consequences of Non-Compliance?
The FTC is beginning to crack down on those that do not disclose but as you might expect, the problem is significant. Consequences often depend upon the nature of the non-compliance. For example, a written warning may suffice for the small time blogger whereas a $11,000 civil fine per incident is possible for blatant non-compliance.
Mike McLaughlin
Maximize Social Media, LLC
Copyright Maximize Social Media LLC 2011.
All Rights Reserved.
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About the author:
Mike McLaughlin is the COO & President of America’s top social media agency for medium-sized businesses, Maximize Social Media.
* As a television producer, he was a key player on several nationally televised shows and worked side by side with celebrities such as Ed Koch, Mills Lane, and Harvey Levin.
* He also used his creative talents to support Fortune 100 companies Lockheed Martin and Publix Super Markets, as a project manager of large-scale training and communications projects.
* At Maximize Social Media, Mike supervises a team of over 200 social media professionals that provide consulting and management services to businesses in more than a dozen verticals.
* Follow Maximize Social Media on Twitter: http://twitter.com/maximizesocial
* Join the Maximize Social Media Facebook Fan Page: http://www.facebook.com/MaximizeSocialMedia
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