Consumers are attracted by advertisements promising weight loss, make money quickly,etc. Unfortunatly, not always getting expected results or that many companies initially promise them, but soon they may get a reality check.
“For a good part of the last decade, we have noticed a problem, particularly with consumer testimonials,”
said Richard Cleland, assistant director of the FTC’s division of advertising practices.
“The use of consumer testimonials had become almost a safe harbor for companies as long as they threw in some sort of disclaimer about results not being typical.”
The Federal Trade Commission(FTC) has set the new guidelines that effects both advertisers and bloggers, but it’s also a sort of regulation created to protect the consumers.
Image Credit: prodigaldog
The new proposed rules, that will effect bloggers includes: “Bloggers who get free products and then endorse them on their blogs would have to make it clear they got the products free.”
Also, bloggers must disclose any financial relationship may have with advertisers, for example if an blogger write a pay-review for an advertisers.
Other FTC rule that will effect advertisers include:
1. Consumer testimonials would have to be substantiated and ads would have to include generally expected results. Endorsers, not just advertisers, could be held liable for deceptive claims. In brief, advertisers, must have sufficient element evidence, to verify that the consumer endorsement is correct.
2. Celebrities who talk up a product in an interview must disclose if they are getting paid for the promotion. Celebrities who endorse products would have to disclose if they have an ownership interest.
3. Expert endorsers, like doctors, must have experience in the product area they are endorsing. If they don’t, the limits of their expertise must be stated. For instance, an ophthalmologist identified only as a doctor could not be portrayed as an expert physician endorsing a hearing aid.
In my view, this is both good and bad, it is going to simplify the ads market in order to make it less saturated, the downside is that some advertisers will be damaged and going to make things harder for them.
