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Consumer group asks FTC to investigate marketing blogs : What do you think?

From the Raw Feed:

The consumer advocacy group Commercial Alert has asked the FTC to investigate 'stealth' marketing campaigns, where companies create and maintain blogs that appear to be from ordinary people but are in fact created by CORPORATE MARKETING DEPARTMENTS for the purpose of selling products, among other tactics.

Here's a copy of the complaint (pdf) filed with the FTC.

There was discussion a ways back about lawyer blogs and professional service companies' blogs being written by ghost writers. I do not think we're talking the same thing here. In this case of the complaint, we're talking of companies running blogs that appear to be published by real people complementing the company's products in some way.

I also think there's plenty of room for a law firm or professional services company to sponsor a blog and be in compliance with the law. Can a realtor in Bozeman, Montana sponsor a blog about moving to Montana, which blog is written and edited by a third party? Why not? The realtor is disclosed as the sponsor, not the publisher or writer.

Isn't it the same thing as the local realtor sponsoring “All Things Considered” on the local Montana National Public Radio affiliate? Just because it's a more targeted audience should not make it misleading advertising.

What do you guys think? Leave a comment.

Source of post: Micro Persuasion

  • http://blogsurvey.backbonemedia.com John Cass

    If the endorser discloses his or her connection, I believe legally its okay for someone to endorse a product. The problem lies in either something not revealing their compensation, or perhaps the gray area of receiving product samples. Commercial alert mentioned P & G in their letter, though the issue was not over blogging but their Tremor service. Tremor signs up teens to give their feedback on products; they receive free product samples, but are not asked to advocate the product or directed how to describe the product to other consumers in the future. Tremor participants don't receive any cash payments.
    A number of people are uncomfortable with the P&G Tremor relationship with teens. I’ve written more about the issue on my blog.
    http://blogsurvey.backbonemedia.com/archives/2005/10/perception_is_everything_in_ad.html
    Perception is everything in advertising and apparently word of mouth.
    However, maybe this perspective will change your opinion:
    I was thinking the P & G example is a little bit like going to a supermarket where someone asks you to test a product, say a dip or a new type of microwave sandwich. If I ate the product, liked it, bought it and went home and told all my friends. Commercial alert is suggesting the company would ask me to inform everyone I spoke with about the new product that I received a free product at the supermarket. Somehow I don't think that type of product testing and promotion is against the FTC rules. What do you think?