November 2009
The FTCs New Endorsement GuidesPolicies and Procedures for Recommendation Marketing Through Evolving Social Media Channels
By Alan L. Friel
The FTCs new guidance makes it clear that companies that are involved in encouraging a message about their products or services in non-traditional media, such that they are essentially sponsoring the messages, even if by consumers or celebrities, will be responsible as the advertiser for the message. Although the FTC acknowledges the limited ability in social and other evolving media to clear and control these types of messages, it places the burden of the risk on both the sponsor and the speaker.
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