The next time an agent at a real estate trade show gives you their opinion and glowing recommendation for a great new product or service you MUST buy, ask if they’re being paid to give you that “opinion”. Guerilla marketers, aka stealth, ninja, buzz and WOM (word of mouth) pay consumers to endorse products and services to other consumers. As it stands now, these consumer promoters are not required by law to disclose that they are being paid. That may change. The FTC will investigate, on a case by case basis, whether the failure to disclose is deceptive advertising in violation of Section 5 of the Federal Trade Commission Act. [pdf FTC letter staff opinion here]
The word (Copyblogger) in Blogland (Andy Beard) and elsewhere (Washington Post) is that Pay-Per-Post bloggers and other online affiliate marketers may have to disclose they are being paid for their endorsements. WOMMA, the Word of Mouth Marketing Association, read the staff opinion letter as applying to stealth or ninja marketing, which they also condemn, not the friendly, non-deceptive buzz or word of mouth marketing that is fair play. Another hairball for the guardians of the consumer to untangle. Professor Walter Carl, blogging from the WOMMA Summit in Washington D.C. last week, has an excellent summary of the FTC position here.
So, if you’re using paid testimonials to promote your product or service, the FTC may be watching you. Personally, I follow the old adage: Don’t believe everything you read and only half of what you see.
Related Post:
Seed Marketing: The Silent Invasion.
Video of M. Engles of the FTC on staff opinion letter here.
There are 1.2+million REALTORS® and it seems that there are 3.6+million people trying to sell a real estate person the latest widget, seo technique, top position for all in the same market, world’s best contact management, and so on.
By the way, I’ve got this great new TOP SECRET SEARCH ENGINE trick……
TELL US JIM TELL US.
Question: Is that JF Sellsius as the photo on this post?
Jim, would love to hear about the search engine trick.
CB, I prefer puffy shirts and powdered wigs. It’s a retro thing.
NICE! Hey we got the first cut back of The Condo Run - www.TheCondoRun.com today…im looking a tad bit on the heavier side…didnt someone say that film ads 10 lbs? They lied..it ads like 30! We should be broadcasting soon!!!
CB, It’s all for a good cause. Great job with TheCondoRun. Next year, add a pub as the last stop
This is a great thing for word-of-mouth advertising!
Oh and do I now have to disclose that you are paying me for this comment?
Ha … Its all good….checks in the mail
Hey CB, how did you get that deal from Citgo? Do they pay you in greenbacks or premium?