The Federal Trade Commission (FTC) has long had regulations in place that limit how advertisers can use endorsements and testimonials. Under the current guidelines, an advertiser can stay clear of false advertising claims simply by adding benign disclaimer phrases such as "experience may vary" or "results not typical."
But that may be about to change. The FTC is in the process of re-writing its endorsement guidelines, in part because of the increasing significance of online marketing. If the new guidelines are approved, bloggers who get free products in exchange for online endorsements would have to make it clear in their posts. Celebrities who endorse products would have to disclose whatever connection they have with the manufacturer. And advertisers would have to be a lot more specific about just what those "typical" results really are.
It seems fair enough. But a number of advertiser groups are fighting the proposed guidelines - claiming that further restrictions on what they are allowed to say in their advertising campaigns would violate their First Amendment rights, and that the new rules would be unduly burdensome, or perhaps flat out impossible for them to follow.
Read more: http://www.bulletproofblog.com/2009/03/20/what%e2%80%99s-wrong-with-transparency/#ixzz0X4PMyv1S
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