With its updated guidance on endorsements, the Federal Communications Commission (FCC) has signaled that the agency may be preparing to crack down on social media marketers for posting misleading content and failing to include proper disclosures.
The FCC’s recent updates to its “What People Are Asking” page in its Endorsement Guidelines provide specific guidance on social media issues. That means wayward marketers are more likely to receive a penalty rather than a warning.
The FCC has only occasionally taken action against social media marketers – so far. Now observers warn that the agency is paying closer attention to brands on social media networks.
“Now they are saying, ‘We have given guidance. You are all on notice,’” Allison Fitzpatrick, an attorney at Davis & Gilbert, told Marketing Land. “So you are not going to get a warning letter. You are going to get an action.”
In a nutshell, the guidelines emphasize the truth-in-advertising principle that endorsements must be honest and not misleading. The same truth-in-advertising principle that applies to print media applies to social media, it stresses. A practice is deceptive if it misleads “a significant minority” of consumers.
Clear and Conspicuous
Marketers must clearly and conspicuously disclose material relationships with celebrities and other influencers endorsing their brand, such as family relationships or compensation. In addition, when endorsers claim above-average results for a product, the brand has to clearly state the product’s generally expected results.
Clear and conspicuous means unambiguous language placed near the brand’s marketing statement, in a font that’s easy to read and in a shade that stands out against the background. In videos, the screen must be shown long enough for viewers to notice and understand.
Brands must disclose when bloggers are paid for recommending a product. Industry insiders are aware of the practice of paying bloggers, but many bloggers are not paid for recommending products, and many consumers are aware the practice, the agency states. Bloggers don’t have to disclose they received a free product in return for mentioning or reviewing it.
While the FCC does not generally monitor bloggers, it will evaluate practices on a case-by-case basis and focus on the advertiser and its ad agency or public relations agency
The guidance for videos is the same as for websites or blogs.
Social Media Contests
Disclosure is required when people receive incentives for entering a contest. If consumers are offered a chance to win a prize for tweeting or making other social media posts, disclosure is required. Including the word “contest” or “sweepstakes” in the hashtag should be enough. However, the word “sweeps” probably isn’t, because many people probably don’t understand what it means.
Twitter’s 140-character rule is no excuse. Including words like “Sponsored,” “Promotion” or “Paid ad” should be sufficient to comply with the FCC guidelines. Starting a tweet with “Ad:” or “#ad” – which takes only 3 characters – would likely be effective.
A hyperlink that says “disclosure” or a similar word links to disclosure is inadequate. It doesn’t convey the importance and relevancy of the information, and most viewers won’t click on it.
Bottom Line: The FCC’s updated and more specific social media guidelines show that the federal regulators are paying more attention to social media marketers. Brands can scrutinize the guidance and review their marketing and PR efforts to make sure they avoid the FCC’s crosshairs.
William J. Comcowich founded and served as CEO of CyberAlert LLC, the predecessor of Glean.info. He is currently serving as Interim CEO and member of the Board of Directors. Glean.info provides customized media monitoring, media measurement and analytics solutions across all types of traditional and social media.
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