The FTC to Update its Online Advertising Guidelines

The FTC to Update Guidance for Online Advertising: What Does the Future Hold? Rich Cleland, Assistant Director, FTC Division of Advertising Practices Anthony E. DiResta , Partner, Winston & Strawn [email_address] ; (202)282-5782 Keith Trivitt , Associate Director of Public Relations, PRSA; Tw: @KeithTrivitt Tw: @PRSA Joe Chernov , VP of Content Marketing, Eloqua Tw: @jchernov

AGENDA
Overview of FTC’s Initiative to Update “Dot Com Disclosures”
A Brand Marketer’s Perspective: Emerging Technologies
Perspective from the Public Relations Society of America
Comments to the FTC’s Initiative
Questions

The FTC Initiative: Rich Cleland
Background into “Dot Com Disclosures”
2000 Issuance
Subsequent Developments
“ Clear and conspicuous” standard
Expectations and Outcomes Desired by FTC in light of “new media” or emerging technologies

A Brand Marketer’s Perspective Joe Chernov , VP of Content Marketing, Eloqua Tw: @jchernov

About Me
VP of Content Marketing, Eloqua
Co-chair Ethics Advisory Panel, WOMMA
Contributor to WOMMA’s ethics code
Member of WOMMA task force on emerging technology
Contributor to previous public comments re: Endorsements & Testimonials Guides

Marketers Get Endorsement Guides (for the most part)
Still some crises caused by ethical transgressions
Most marketers understand transparency is essential
Public, media, associations reasonable at “policing”

Timeline of Disruptive Technologies

Four “Facebook Era” Concerns
“ Generic endorsements” that prevent disclosure
It’s possible to adhere to some sites’ TOS, yet still (potentially) violate FTC guidelines
The battleground may shift to search
Are there “sacred cows”?

Sometimes Tech Impedes Disclosure
Value of “transitive trust” rises as social graph spreads, but disclosure impeded by:
One-click endorsements (Likes, +1’s / hearts on Instagram, Frenzapp, Tumblr / votes on Quora)
Status emblems in some geosocial networks
Twitter’s auto-RT function
My solution: Avoid material incentives unless disclosure can be made; don’t use auto-RT when connection exists

Can a TOS be a Trap?
Official statement: “Quora’s policy is that a user should disclose any relevant affiliations explicitly in an answer or in the topic bio …”
My solution: Replace should with must ; don’t use “variable disclosure”

A New Value Emerges: SEO
If +1’s affect/will affect the SERPs, a company or SEO firm could pay groups to +1 site, product, etc. to improve search rank
My Solution: Don’t mess with this; don’t mess with Google

Overlooked Audience
Do disclosure requirements apply to:
Celebrities
Shareholders
Angels / VCs
Advisors
Board members
My solution: Hope some clarity emerges from the Arrington/Huffington drama

PRSA Comments to FTC PRSA Comments to FTC Keith Trivitt Associate Director of Public Relations Public Relations Society of America Tw: @KeithTrivitt

Public Relations Society of America
World’s largest organization of PR and communications professionals
Established in 1947; headquartered in New York
Mission:
PRSA provides professional development, sets standards of excellence and upholds principles of ethics for its members and, more broadly, the multi-billion dollar global public relations profession. We also advocate for greater understanding and adoption of public relations services, and act as one of the industry’s leading voices on the important business and professional issues of our time.

PRSA Code of Ethics
Industry standard for 60+ years
All PRSA members (32,000) required to abide by Code of Ethics
Advocates for transparency and honesty in communications
Code Provisions:
Free Flow of Information
Competition
Disclosure of Information
Safeguarding Confidences
Conflicts of Interest
Enhancing the Profession

Objectives of PRSA Commentary
Provide perspective of 200,000+ U.S. PR professionals
Interest in enhancing transparency in online marcomms
Specificity in recommendations
Modernization of guidelines given current online marketing challenges

PRSA’s Recommendations to FTC
Further restrictions risk stifling innovation
Self-regulation in this space can work
More timely & clear guidance needed
Character and text limitations
Issue over inclusion of brand disclosures at every point of social media communications and marketing
Clarity needed regarding how brands can reasonably provide disclosures within character-limited social networks
Seeking clear guidance from FTC
How businesses can appropriately communicate with and market consumers online

PRSA’s Recommendations to FTC
Merge “Blogger Rules” with Dot Com Disclosures
Significant overlap
Disclosure is key issue in both
Disclosure is paramount
Disclosure of relationships, motivation, compensation and other pertinent factors
“ Clear and Conspicuous” Standard
Companies should be transparent in ALL communications and marketing
Reality of Twitter-led marketing
Is “clear and conspicuous” still viable?

Commitment to Responsible Marketing
PRSA committed to responsible marketing and communications practices — both offline and online
Committed to disclosure in ALL online communications and marketing
Code of Ethics advocates for transparency
Aiding the public’s informed decision-making
Providing necessary information to inform consumers’ purchasing decisions
Disclosing information that may negate certain value points of a product or service

Commitment in Action
PRSA letter to editor of USA TODAY , Aug. 18, 2011:
“ Even tech-savvy parents can be unaware that their children are being influenced online by marketers. It's for this reason that the Public Relations Society of America strongly supports the Federal Trade Commission's effort to update its online advertising disclosure guidelines …. Whether marketing to children or adults, we have a responsibility to ensure consumers have the necessary information to make informed decisions regarding their online activities and privacy.”

Final Comments
PRSA strongly committed to principle of transparent online marketing and comms
PRSA members abide by industry-leading Code of Ethics
PRSA Code of Ethics as industry’s self-regulation
Has succeeded for more than 60 years

Final Recommendations
FTC should hold public workshop to obtain full input from all stakeholders
PRSA can be viable partner for FTC in discussions of online marcomms disclosure

Other Comments to FTC
Nature of commentators
Common themes presented
Issues presented to FTC

?? Questions ?? The FTC to Update Guidance for Online Advertising: What Does the Future Hold? Rich Cleland, Assistant Director, FTC Division of Advertising Practices Anthony E. DiResta , Partner, Winston & Strawn [email_address] ; (202)282-5782 Keith Trivitt , Associate Director of Public Relations, PRSA; Tw: @KeithTrivitt Joe Chernov , VP of Content Marketing, Eloqua Tw: @jchernov

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The FTC to Update its Online Advertising Guidelines

by Word of Mouth Marketing Association on Sep 23, 2011

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The FTC to Update its Online Advertising Guidelines — Presentation Transcript