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Issue Date: Firm Voice - October 21, 2009


10 Things PR firms Should Be Doing in Response to FTC Changes
Kathy CrippsMichael LaskyBy Kathy Cripps, President, Council of Public Relations Firms, and Michael Lasky, partner at the law firm at Davis & Gilbert, outside legal counsel for the Council of Public Relations Firms and Chair's the firm's Public Relations Law Practice

As you are probably aware, 16 days ago the Federal Trade Commission (FTC) announced that it had approved final revisions to its Guides Concerning the Use of Endorsements and Testimonials (Guides).

Because the revised Guides represent the most sweeping changes in almost 30 years to endorsements and testimonials, they will likely affect public relations firms and their clients' use of endorsements and testimonials, particularly with respect to consumer-generated media, such as blogs and social networking sites.

The good news is that these changes are consistent with the way most PR firms already operate on behalf of their clients and validates many existing industry codes and/or guidelines, such as the Council's Statement of Principles (which the Council requires all members to sign each year).

Whether or not you believe the government should be involved in any or all of these areas of marketing, the fact is starting December 1st the FTC will be policing businesses under a new set of Guides. It's up to you, your staff, and your clients to follow them.

Here are 10 things that public relations firms and their clients should be doing now

The revised Guides will likely require marketers to alter their use of endorsements and, to the extent they have not done so already, adopt policies regarding blogs and other forms of consumer-generated media. We strongly encourage marketers and their public relations firms to be proactive in their response to the revised Guides by establishing policies and procedures that respond to the FTC's changes, including the following:

  • Marketers should advise bloggers with whom they have a material connection (e.g., provide payment or free product (in certain instances), blog service, etc.) to disclose their relationship with the Marketer whenever making a positive review about the Marketer or its products or services.
  • Marketers should monitor their bloggers to ensure that they make the necessary disclosures and that their statements are not misleading or unsubstantiated. If the blogger does not make the necessary disclosures or makes misleading or unsubstantiated statements about the Marketer's products, the Marketer should cease sponsoring the blogger and take steps necessary to halt the publication of misleading or unsubstantiated representations when they are discovered.
  • If hiring a blog service, the Marketer should confirm that the service provides guidance and training to its bloggers to ensure that the necessary disclosures are made and the statements made by bloggers are truthful and substantiated.
  • Employees of the Marketer or its PR firm should clearly disclose their relationship to Marketer if posting messages on on-line discussion boards.
  • Marketers should institute written policies and procedures concerning the rules by which their employees participate in "social media participation."
  • "Street Team" members who receive any form of consideration for promoting Marketer's products (e.g., rewards points) should disclose their connection to the Marketer and the Marketer should take steps to ensure that these disclosures are being provided.
  • When celebrities are paid for promoting products in media, such as talk shows, interviews and social media sites (e.g., Twitter, Facebook, etc.), they should disclose their relationship with the Marketer.
  • Spokespeople should undergo enhanced media training to ensure they understand what disclosures must be made in media, such as talk shows, interviews and social media sites (e.g., Twitter, Facebook, etc.), and what representations they can make about the Marketer's product.
  • In determining the appropriate level of disclosure, consider the likely audience for the blog, social media site or other venue on which the communication is being made. Ask yourself whether the intended audience of the message is likely to be deceived without the disclosure of some fact or circumstance.
  • Seek advice from experienced legal counsel to help you determine in particular situations when the marketer and its public relations firms are complying with the revised Guides.

For more information on the Guides, go to the FTC Web site.

Kathy and Michael acknowledge the assistance of Allison Fitzpatrick, an associate at Davis & Gilbert, who has been intimately involved in the work on the new FTC Guides.


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