Proposed FTC Influencer Guidelines Change the Game, Amazon Prime CMO Fired...

Published: Wed, 06/29/22

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WEDNESDAY JUNE 29th 2022

Proposed FTC Influencer

Guidelines Change the Game

The Federal Trade Commission (“FTC”) recently announced its long awaited proposed changes to its Guides Concerning the Use of Endorsements and Testimonials in Advertising (the “Endorsement Guides”). The Endorsement Guides were first enacted in 1980 and are intended to help businesses ensure that their endorsement and testimonial advertising conforms with Section 5 of the FTC Act, which prohibits “unfair or deceptive acts or practices in or affecting commerce.” The proposed changes to the Endorsement Guides reflect the FTC’s continued focus on ensuring that endorsements and testimonials are not misleading to consumers.

Under the proposed changes, endorsements and testimonials would be subject to the same truth-in-advertising principles that apply to other forms of marketing. Endorsements would have to be honest and not misleading, and testimonials would have to reflect the typical consumer’s experience. In addition, the FTC is proposing new disclosure requirements for endorsements and testimonials that are made through social media platforms such as Twitter, Facebook, and Instagram. These disclosures would need to be made clearly and conspicuously, in close proximity to the endorsement or testimonial.

Some of the huge changes that will likely change how we think about social media marketing:

1. Under the new guidelines, any time a user posts content on a social media platform that features a branded product, that will be considered an endorsement. The FTC is concerned that many users are not aware of this practice and could be unknowingly endorsing products. For example, if a user posts a photo on Instagram of themselves using a certain brand of makeup, that would be considered an endorsement. If you tag a brand, that is an endorsement. The guidelines state that endorsements must be honest and transparent, and that users should disclose any relationship they have with the brand in question.

2. They really pushing that that bloggers and others who receive free products or other forms of compensation in return for positive reviews must now disclose such arrangements "clearly and conspicuously." Disclosure of sponsorships must be “difficult to miss and easily understood by ordinary people.” FTC's new guidelines are in response to concerns that such disclosures are often buried in lengthy terms and conditions documents or placed in a location on a website where they are easily missed.

3. In recent years, there has been an increase in the use of middle-man vendors, such as advertising agencies and public relations firms, to create and place ads. While these vendors can be a valuable resource for businesses, they also pose a risk. In particular, middle-man vendors may be liable for not disclosing that their ads are paid. This is because the Federal Trade Commission (FTC) requires that all paid ads be clearly and conspicuously disclosed.

4. Businesses should not distort or misrepresent reviews from customers or clients about their products or services. Although some businesses may be tempted to do this in order to make themselves look better, it ultimately damages their credibility and can lead to legal consequences.

5. Many platforms have introduced tools to help improve transparency, such as the paid partnership label on Instagram. However, it seems that according to the FTC, this is likely "not enough" as it doesn't disclose the exact nature of the relationship, what was recieved, and so on.

The FTC’s proposed changes to the Endorsement Guides are significant, and will require companies to take a closer look at how they use endorsements and testimonials in their advertising. If you are currently using endorsements or testimonials in your advertising, or if you plan to do so in the future, you should carefully review the proposed changes and make sure that your marketing materials comply with them.

Pesach Lattin
Pesach@lattin.us

The Rundown

At least 10 News Stories you Must Know

1. Last week, Instagram began testing several new ways to verify users’ ages on the app. In the ongoing trial, users attempting to update their age from “under 18” to “18 and over” either have to upload a photo of their ID, have three mutual friends verify their age, or, most notably, record a video selfie for face-scanning. While some users have raised concerns about the privacy implications of this new system, others see it as a necessary step to keep younger users safe. After all, many of the app’s features are not appropriate for children, and this age verification process will help to ensure that only those who are old enough to use the app are able to do so. Overall, it remains to be seen how effective this new system will be, but it is certainly an interesting development worth monitoring.

2.Ukonwa Ojo, chief marketing officer of Amazon Prime Video and Amazon Studios since 2020, is stepping down, the company announced. In a note to staff, Mike Hopkins, senior vice president of Prime Video and the studios, thanked Ojo for her “focus, passion and commitment” and said the transition period would be used to “evaluate our organizational needs.” However, an insider was told she is being blamed for several extremely expensive marketing campaigns that lost subscribers because they were seen as too political and "cringey." Because of this, they are not even announcing a replacement at the time.

3. It seems that Facebook is saying goodbye to Premieres. The feature, which allowed users to schedule pre-recorded videos as Live moments, will be discontinued on August 22. While this may be a disappointing development for some, it's important to remember that you can still schedule pre-recorded videos as posts. So if you're looking to share a pre-recorded video on Facebook, you'll just need to use a little bit of creativity. For example, you could title your video "A Glimpse Into My Life" or "My Latest Adventure." Whatever you do, make sure your title is eye-catching and intriguing. With a little bit of effort, you can still make your pre-recorded videos stand out on Facebook.

4. DuckDuckGo, the search engine that promises to keep your searches private, appears to be on the decline. In January 2021, it broke the 100 million searches per day mark, but since April of this year, it has dipped below that mark each month. The privacy-focused search engine has seen a decline in users since its peak in December 2020. This dip in popularity may be due to the fact that DuckDuckGo is not as widely known as other search engines such as Google and Bing. Additionally, DuckDuckGo does not offer some of the features that users have come to expect from a search engine, such as customisable settings and the ability to save searches. While DuckDuckGo may not be the most popular search engine, it is still used by many people who value privacy and want to avoid being tracked online.

5. In a recent study, researchers found that Twitter is the most popular social media platform among journalists. The study, which was conducted by the Pew Research Center, surveyed a group of U.S.-based journalists and found that Twitter is used by more than half of them. This is unsurprising, as Twitter has long been known as a valuable resource for news gathering and dissemination. In fact, many journalists credit Twitter with helping them to break major stories. For example, when the news of the Boston Marathon bombings first broke, it was largely due to tweets from eyewitnesses who were on the scene. In an age where traditional news sources are increasingly being bypassed in favor of social media, it is clear that Twitter is playing an essential role in how news is being reported.

6. Development teams at Google are always looking for ways to improve the user experience, and their latest innovation is sure to please anyone who relies on search engine results to make decisions. Now, when you search for reviews of a product or service, you'll not only see a list of links to review sites, but you'll also see a dynamic display of pros and cons. That's right, Google is now automatically extracting key information from reviews and presenting it in an easy-to-read format. So whether you're trying to decide which car to buy or which restaurant to visit, you can be sure that Google has your back.

8. At long last, Yoast SEO has adopted IndexNow, the Microsoft backed protocol to submit content to search engines. This is a big win for those of us who have been using Yoast SEO to optimize our WordPress sites for better search engine visibility. IndexNow allows us to submit our sitemaps directly to Bing and other supported search engines, which means our content will get indexed more quickly and accurately. Plus, it's just one less thing we have to worry about when it comes to SEO. So if you're using Yoast SEO on your WordPress site, be sure to update to the latest version and start taking advantage of IndexNow.

9. Pinterest is a social media company known for its eponymous website, where users can share images and videos of recipes, home improvement ideas, and more. The company was founded in 2010 by Ben Silbermann, Evan Sharp, and Paul Sciarra. In 2015, it raised $186 million in venture capital, valuating the company at $3.8 billion. In 2017, it filed for an IPO and began trading on the New York Stock Exchange. On May 16, 2019, the company announced that its longtime CEO, Ben Silbermann, was stepping down and that Bill Ready, a commerce executive at Google, would be taking over the top job. The move comes as Pinterest looks to accelerate its growth and expand its international presence. Ready will be tasked with growingPinterest’s user base and deepening engagement with existing users. He will also be responsible for generating revenue from the site’s more than 200 million monthly active users. Pinterest has high hopes for Ready; time will tell if he can deliver on those expectations.

10. If you thought your parents were bad when they threatened to sue Facebook, just wait until the government gets involved. That's right, the California state Senate has just passed a bill that would allow government attorneys to sue social-media companies like Facebook for features that allegedly harm children through addiction. The bill still needs to be approved by the state Assembly and Governor Newsome before it becomes law, but if it does, it could set a precedent for other states to follow suit. So what does this mean for you? Well, if you're a parent, you might want to start monitoring your child's social-media usage a little more closely. And if you're a social-media company, you might want to start thinking about how to make your products more child-friendly. Either way, it's clear that this is an issue that is not going away anytime soon.

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Proposed FTC Influencer Guidelines Change the Game, Amazon Prime CMO Fired...

WEDNESDAY JUNE 29th 2022

Pesach Lattin Pesach@lattin.us

Pesach Lattin
Pesach@lattin.us