In 2009, the Federal Trade Commission (FTC) revised its guidelines governing endorsements and testimonials for merchants. The timing of the review is noteworthy: the above guidelines date back to 1980, before anyone heard of the Internet, let alone Facebook. Your online marketing might have the best of intentions, but the feds might flag any overselling efforts.
Why did the FTC update and change?
1) Not everything online is yours to use
Celebrity images or endorsements. Do you think a photo of Beyoncé or Tim Tebow will draw attention and enhance your brand image? Or maybe you want to use a classic rock song as the background for your YouTube video? At best, you could be requesting a cease and desist letter, and at worst, a copyright infringement lawsuit. As for sponsorships, it goes without saying that using someone’s likeness in your marketing involves sponsorship that may not exist. If you’re looking for real endorsement, the FTC’s detailed guidelines cover honesty of opinion, reliability of claim, and disclosure that the celebrity is a paid spokesperson.
The misdeeds of social networks. To take a look at how social media has changed the face of marketing, you just need to see what the FTC is looking at these days. According to Mashable, some questionable practices brought to the agency’s attention include “flogging,” which is blogs that exist solely to promote a product or service; and “astroturfing,” in which fake customers post misleading or biased reviews on sites like Yelp.
2) Claims need justification
Marketing Claims. “Natural”… “organic”… “green”. Words like that can bring images of ecological, sustainable and chemical-free products. But spreading unsubstantiated claims can get you in trouble, as Neutrogena recently discovered. The cosmetics company was fined $1.8 million for describing some of its skin care products as “natural” when they contained what the lawsuit called “chemically derived, synthetic fragrances.”
As for “green” marketing claims, the FTC wants you to provide “competent and reliable evidence” for your claim, in the form of reliable scientific evidence, defined as tests, analyses, research, studies, or other evidence when you claim that your product it’s green.”
Good, better and better. Subtle wording of parity claims is an established form of marketing. Take Brand X’s claim that “no battery lasts longer.” Does that mean that brand X’s battery lasts longer than brand Y’s? Nope; batteries are generally identical regardless of brand. As a parity statement, “no battery lasts longer” simply means that Brand Y (and any other brand) is likely to last as long as Brand X, but no longer.
Parity claims abound in marketing: “No pain reliever works faster.” “Get the best chocolate flavor.” The FTC generally doesn’t care about claims of “better” parity. But superiority claims of being “better” than a competitor must be supported by accurate and unbiased evidence.
Some companies push the good/better/better envelope too much. When Ford once claimed his car was “700% quieter,” the FTC sought clarification. Ford had to admit that they meant the interior of the Ford to be 700% quieter than the exterior, which is not a very convincing claim!
Carefully craft your content
The vast majority of sellers are never cited by the authorities, so running a clean campaign is not that difficult to achieve. When you carefully describe your features and benefits, providing an accurate description without exaggeration or using unethical tactics, you will increase your company’s credibility and encourage new business.
