FTC Moves to Unmask Word-of-Mouth Marketing

[kr338r]

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.As the practice has taken hold over the past several years, however, some advocacy groups have questioned whether marketers are using such tactics to dupe consumers into believing they are getting unbiased information."

Link

 

[Andrew]

Hey, they could have a disclosure like ReviewMe, "Hi, nice to meet you, my name is Bob. Disclaimer: this is a paid conversation for Procter & Gamble, but please note that all opinions I will express in the next 15 minutes are completely my own, and have not been influenced by the advertiser."

 

[hodge]

Screw the FTC What are they thinking !

 

[kr338r]

this is the kind of viral marketing the FTC is talking about:

Sony marketers are horrible liars, pretend to run fansite (from Joystiq)

"PSP fansites are popping up all over the internet. The demand for the portable system is at an all-time high as enthusiasts can't contain themselves. Rather, they opt to start seasonal fansites evangelizing the portable's many benefits not to mention its huge list of AAA and exclusive games. PSP fansite All I Want For Xmas is a PSP is no different. It was started by two "kids" -- one of which raps and looks disturbingly old for a kid -- in an effort to entice their parents to buy them a PSP for Christmas. Furthermore, the site only uses lower case letters, always references "two" as "2," embraces hip phrases like "here's the deal," publishes fake user-generated comments like "this is the best site ever" under the alias of True Gamer, and posts homemade rap videos full of stage props and trite "izzies." The above video is sure to reach the top spot on YouTube by tomorrow. It just screams street cred.

The only problem is the registered domain where this lame video is posted is owned by a marketing company called Zipatoni, presumably one hired by Sony. And we can't think of an individual stupid enough to post such a video only to get laid into worse than the Star Wars kid had it. I won't even quote the atrocious lyrics for fear you might throw up a little in your mouth after hearing. You almost had us, Zipatoni. Almost!!! Dense marketers usually do an excellent job in fooling ignorant consumers with such authenticity."

 

[waz67]

OMG that PSP thing is so bad. The funny thing is, it's almost immediately recognizable as a fake fansite. People who really talk like that are usually too stupid to build a site like that.

 

[Adsense Loser]

Not a big story

 

[kr338r]

Not a big story

that's why i didn't post it in the "big story" section...

actually, anyone who is running a product review/affiliate website could be affected by this...
unless they are disclosing the fact that purchasing a reviewed product through an affiliate link on the reviewer's site leads to a commission for the reviewer.

from the washington post article in the original post:
"The FTC said it would investigate cases where there is a relationship between the endorser of a product and the seller that is not disclosed and could affect the endorsement. The FTC staff said it would go after violators on a case-by-case basis. Consequences could include a cease-and-desist order, fines and civil penalties ranging from thousands of dollars to millions of dollars. Engle said the agency had not brought any cases against word-of-mouth marketers."

all it takes now is one complaint to get big brother on yer ass.

 

[gillian]

Hey, they could have a disclosure like ReviewMe, "Hi, nice to meet you, my name is Bob. Disclaimer: this is a paid conversation for Procter & Gamble, but please note that all opinions I will express in the next 15 minutes are completely my own, and have not been influenced by the advertiser."

I like!

 

[BNWFinance]

Yet another reason I like NOT living in your country...

 

[chrislingle]

BNWFinance - ROFLMMFAO - LIVING HERE EVEN WITH A BUNCH OF STUPID RULES BEATS CANADA AND THE REST OF THE WORLD BY A FACTOR OF 1MILLION! DUMBASS!

 

[DruSam]

WTF? This is bullshit. Just keep adding the red tape FTC assholes. We are going to have totalitarian controlled economy in no time. Chip chip chip away...

For those of you that think this shit isn't a big deal, it's not until they add some more red tape. and little more and little more. and before you know it you can't wipe your ass until you fold the paper exactly 7 times with perfectly cornered edges.

Vote libertarian, get these bureaucratic jackasses out of our government.

 

[int_josh]

whats the big deal? just add the disclaimer in "terms of service" or "disclaimer" section of your website

you should have those sections regardless, by the way

 

[Albert]

WTF? This is bullshit. Just keep adding the red tape FTC assholes. We are going to have totalitarian controlled economy in no time. Chip chip chip away...

For those of you that think this shit isn't a big deal, it's not until they add some more red tape. and little more and little more. and before you know it you can't wipe your ass until you fold the paper exactly 7 times with perfectly cornered edges.

Vote libertarian, get these bureaucratic jackasses out of our government.

Someone has been listening to too much right wing talk radio.

 

[BNWFinance]

BNWFinance - ROFLMMFAO - LIVING HERE EVEN WITH A BUNCH OF STUPID RULES BEATS CANADA AND THE REST OF THE WORLD BY A FACTOR OF 1MILLION! DUMBASS!

What a convincing and eloquent argument. Once again, your elucidation astounds me. I am also suitably humbled by your all-caps bellowing and misspelling of a common Internet slang acronym.

 

[chrislingle]

the extra mf was for mother fuckin, dumbass. I don't take kindly to someone from Canada, half a rung above the pussies in France talking shit about the USA.
I guess you like the world of socialism and 60+% tax rates etc etc - hey while we are at it, take Michael J Fox back please we don't want his shshshacky ass trying to tell us what to do or think!
We will keep Pam however cause we like trailer trash blonds with big fake hooters even if she is from Canada!

 

[BNWFinance]

the extra mf was for mother fuckin, dumbass. I don't take kindly to someone from Canada, half a rung above the pussies in France talking shit about the USA.
I guess you like the world of socialism and 60+% tax rates etc etc - hey while we are at it, take Michael J Fox back please we don't want his shshshacky ass trying to tell us what to do or think!
We will keep Pam however cause we like trailer trash blonds with big fake hooters even if she is from Canada!

BWAAAHAHAHAHAH...Keep going, Chris...Soon you'll be able to taste your own ass.

 

[chrislingle]

OH canada, oh canada or piece o shit land.....yada yada yada, we are all a bunch of pussy tree huggin bitches yada yada yada the USA is mean to us cause we suck yada yada yada, we tax your ass 65% + cause your money is canadas money yada yada the end