Word of Mouth Marketing
Association (WOMMA)
FTC Guide Update
for WOMMA Members

Speakers Include:
Paul Rand
CEO and President Zócalo Group, WOMMA President-Elect
Tony DiResta
Manatt, Phelps & Phillips, LLP

History of WOMMA’s Role
with FTC and the Guide
• During the 2008 Summit, WOMMA launched the Living
Ethics Process where WOMMA solicited comments on
WOMMA’S Ethics Code from members and consumers.
• In January 2009, the FTC announced the proposed
changes to the Guide for Testimonials and Endorsements
in Advertising.
• WOMMA worked directly with its members and the FTC
to submit comments regarding the Guide on behalf of the
WOM industry. We provided educational input on the role
of the industry and how it would be affected by the
revisions to the Guide.

History of WOMMA’s Role with
FTC and the Guide Continued
• As a result of the Living Ethics Project launched in
November, WOMMA finalized changes to the Ethics Code in
March 2009 following input provided by Members and
Consumers.
• WOMMA announced an interim process to the Living
Ethics project in May 2009.
• In anticipation of the FTC Guide changes, WOMMA
announced changes to the Code in August 2009 concerning
compensation and disclosure.
• Lastly, WOMMA announced overall format changes
to the Code in September 2009.

History of WOMMA’s Role with
FTC and the Guide Continued
• A disclosure webinar held in September 2009
launched a full discussion on what is effective and
meaningful disclosure which closes on October 14,
2009.
• The new FTC Guide was announced on October 5,
which publicly noted WOMMA’s work on behalf of the
WOM industry, specifically calling attention to the
WOMMA Ethics Code.

Key Points in the Guide
The FTC understands the role and
impact of social media marketing.

Key Points in the Guide
The FTC recognizes the role of
self-regulation, but notes that it must be
backed up with law enforcement.

Key Points in the Guide
According to the FTC Guide, only
“sponsored” communications are
subject to regulation.

Key Points in the Guide
For sponsored communications, disclosure is
required for “material connections.”

Key Points in the Guide
There is potential liability for advertisers,
advertising agencies, and endorsers for
misleading and unsubstantiated statements
made by the endorser.

Key Points in the Guide
“Results may vary” and similar
disclaimers are history.

Key Points in the Guide
Celebrity endorsements are
covered by the Guides.

Key Points in the Guide
Don’t look at the FTC Guides in isolation - -
they have legal implications in other contexts.
Therefore, be compliant.

Key Points in the Guide
“Big brother” is watching.

Key Points in the Guide
WOMMA’s got your back

Summary
What this means for you if you are an agency partner:
• Take responsibility. It’s yours too -
• Follow the WOMMA Guidelines
1. Participate in driving best practices
2. Participate in WOMMA and give feedback
• Be an educator for your clients and colleagues
• Promote your membership in WOMMA

WOMMA Follow Up
• Nov. 18-20, attend WOMMA Summit 2009 to hear first
hand from Chuck Harwood from the FTC.
• WOMMA will also hold a panel session discussing
Ethics and the FTC Guide on Friday, Nov. 20
• Brands marketers and regulatory staff should not miss
this event!
• Register at http://WOMMA.org/Summit09/register

Word of Mouth Marketing Association
• Comment by Oct. 14:
http://WOMMA.org/ethicsreview
• Subscribe to DiResta-the-Law blog:
http://WOMMA.org/diresta
• Register to attend WOMMA Summit 2009:
http://WOMMA.org/summit09/register
Contact WOMMA
www.WOMMA.org
(312) 853-4400