Can you even imagine what their reviews do for a product? Thankfully, the Petersiks post disclaimers at the beginning of every blog post even remotely connected to an endorsement. However, many bloggers don't.
The corporate advertising world is no different. Many companies use false testimonials and other similar tactics, including:
- unfairness
- omitting information
- making insignificant information seem significant
- substantiation
Substantiation, perhaps the most frequently targeted use of deceptive advertising, can be detailed by the FTC's case against POM Wonderful. The latest fad beverage in anti-aging/anti-wrinkle/anti-every-disease-ever hit the shelves a few years ago with advertisements proclaiming that "just 8oz. a day can cure prostate cancer, erectile dysfunction, and heart disease!" The FTC ruled their advertising was misleading and they had no scientific studies to prove the claims. POM Wonderful tried to argue the ruling, saying that it violated their First Amendment rights, but was swiftly rejected.
The Food and Drug Administration (FDA) works similarly to the FTC, but is "concerned with the promotion of prescription drugs through the mass media, whether via advertising or PR activities" (Gower, 2008). Through the Federal Food, Drug, and Cosmetic Act, the FDA can "seek injunctive relief, seize offending products, and issue criminal penalties" (Gower, 2008).
For example, in 2011, the FDA issued a warning to food manufacturers that any food labeled "natural" or "all-natural" would be considered false or mis-branded if it contained anything other than natural ingredients. In today's Whole Foods-obsessed society, this warning is a major blow to food manufacturers who claim to be all-natural. Many have filed class action suits against the FDA, but thus far, the courts have upheld many of their rulings. In the continuing battle against the obesity epidemic in this country, the FDA has introduced a new weapon.
So how does all of this apply to bloggers? FTC guidelines say that any connection between an endorser or seller requires full disclosure, but there is no specific definition of "connection," nor is there any specific example of "full disclosure." And while there hasn't been a major lawsuit between the FTC and bloggers, there is a belief that there is "no significant distinction between a major brand and a blogger." It is only a matter of time before the worlds of the FTC, FDA, and the blogosphere collide and the means of online advertising in changed forever.
As PR professionals, the only absolute way that we can protect ourselves, our clients, and our companies is to tell the truth. Don't try to unnecessarily exaggerate, leave out important information, or lie about secondary connections. Our job is to maintain positive relationships rooted in trust. If our publics - which includes consumers - feel as if they have been lied to or cheated in any way, the relationship is broken.
Remember when your mother used to say, "I'm not mad, I'm disappointed?" When it comes to deceptive advertising, consumers, the FTC, and the FDA are your mother, and you will most certainly go to bed without dinner.
References
Federal Trade Commission. (2013). FTC Commissioners Uphold Trial Judge Decision that POM Wonderful, LLC; Stewart and Lynda Resnick; Others Deceptively Advertised Pomegranate Products by Making Unsupported Health Claims. [Press release] Retrieved from http://www.ftc.gov/opa/2013/01/pom.shtmhttp://www.ftc.gov/opa/2013/01/pom.shtm
Gower, Karla. (2008). Legal and ethical considerations for public relations. Long Grove, IL. Waveland Press, Inc.
PRLOG: Press Release Distribution. (2011). FDA Rules against False "All Natural" Food Claims as Class Action Law Suits Multiply. [Press release]. Retrieved from http://www.prlog.org/11743506-fda-rules-against-false-all-natural-food-claims-as-class-action-law-suits-multiply.html
Social Media Examiner. (2011, October 4). Are You Disclosing? What You Need to Know About FTC Rules and Social Media. Retrieved from http://www.socialmediaexaminer.com/are-you-disclosing-what-you-need-to-know-about-ftc-rules-and-social-media/
Young House Love. Retrieved from http://www.younghouselove.com/
Great post! This post is such a good example of why ethics are important in PR. Obviously everyone wants to present their client, product, company, etc, in the best light, but it takes ethics and integrity to not cross the line from framing your communications to lying. I don't really see the federal restrictions as terribly restricting, because I think even if they weren't in place, it would be things I wouldn't be comfortable doing in my PR writing. I really liked your DIY blog example.
ReplyDeleteKatie – I don’t think federal restrictions are terribly restricting…yet. I think the FTC and FDA are mostly concerned with advertisements that reach people on a national level – clothing ads, medications, beauty products, food, etc. However, as the advertising world continues to move towards new media, I think there is going to be a serious shift in the concentration of restrictions.
DeleteOn a blog I was reading the other day, the author wrote that she was struggling with her idea of privacy. She values her readers and the slight notoriety that she has gained from her blog. She has even had large companies approach her to try to take her blog “to the next level” where she could make some serious money. However, she has consistently declined because she feels that doing that would totally devoid her and her family of all privacy.
She is one of the very few who feel that way. Most people who have blogs would do anything to turn it into a full-time, lucrative, fame-making job including writing bogus reviews. I think we're going to see more of those types of reviews, but additionally, stricter regulations.
Nice job, Teddy, of providing a summary of the FTC rules on deceptive advertising and FDA rules on drug advertising. The FTC regulation of bloggers and other online endorsers is a fairly new rule for them. They kept their hands off for years, treating most online posts as protected speech under the First Amendment. But whole industries were springing up to pay people for fake reviews and false endorsements that the FTC finally stepped up a couple of years ago and issued guidelines and penalties.
ReplyDeleteProfessor - you're absolutely right. In my research for this posting, I found this article:
Deletehttp://www.businessinsider.com/new-york-cracks-down-on-fake-yelp-reviews-2013-9
It uses the term "astroturfing" to refer to false reviews. This article cites Yelp as one of the places where fake reviews show up, which is frustrating because I make approximately 110% of all of my restaurant choices based on Yelp reviews.
Great job Teddy! I liked your examples and your passion behind your post. I could really see that you took the time to research this topic and write a good blog piece. I couldn't agree more when you said that "As PR professionals, the only absolute way that we can protect ourselves, our clients, and our companies is to tell the truth." You couldn't be more right! It's so important to be transparent with our clients and publics so that they may trust us completely and trust that we can get the job done for them. Once that transparency disappears, all bets are off and it can ruin a brand. I know the FCC and the FTC are pretty open with their regulations and give a good amount of leeway but some organizations feel as though they can stretch it to the limits and take advantage of it and that's certainly where they pay the price.
ReplyDeleteJared - as someone who has posted about sports on this blog before, I'm interested to know your thoughts about deceptive advertising in sports brands. Nike, Adidas, Under Armour and other brands make people feel like if they wear their clothing, they can be faster, stronger, and better (sorry, Kanye). In general I think they do a good job of toeing the line of those FTC regulations, but they do it in a way that still makes the consumer think that they will be Lebron James or Derek Rose or Tiger Woods if they wear their brand.
DeleteHowever, this is still one of my favorite ads:
http://www.youtube.com/watch?v=LsXRj89cWa0
It's called "Find Your Greatness," by which they mean, you will find your greatness if you wear Nike. I personally think it's genius.
Teddy, thanks for sharing! You make some great points and really help to reemphasize why it is so important that public relations professionals know and understand these regulations since most likely PR clients will be involved with the FTC or the FDA. Even if they aren’t, many clients might have blogs, and it is critical that those blogs conform to the regulations as well or else serious damage to the trust and honesty of the company could occur. Ensuring that the distinction is made that there is no connection between a seller and a possible endorser is extremely important. Having the disclosures be upfront will eliminate any questions later. The POM example was great! And last but not least, thanks for introducing me to a new home blog – I love that stuff!!
ReplyDeleteSarah - I'm glad you share the love for DIY blogs! They're so addicting. I consistently have to reign myself in and realize that I can't redo a bathroom with just a broom and a stick of glue.
DeleteHave you ever used a product because a blogger recommended it or gave it a good review? I tend to find myself taking their reviews with a grain of salt, even if they have the disclaimer at the beginning of their post.
Teddy that was a great post, very insightful!! I agree 100% with Sara.The points that you make in your post truly capture the importance of FTC, FDA, and Social Media regulations and how they relate to public relations. I feel as though all of the blog topics leading up to this one have had very blurred lines as far as where certain laws and issues stop and where the job of a PR professional begins. However, in this case, things seem to be much more definitive thanks to the organizations such as the FTC and the FDA. The POM example that you used was spot on. I actually talked about a similar case in my module 10 posting regarding Activia and how the ended up in a 45 million dollar lawsuit because they advertised their product as a "clinically" and "scientifically" proven to help regulate the digestive system and boost the immune system. However, the Dannon yogurt was found to do nothing more than what every other yogurt on the shelf did...provide a good source of calcium and nothing more. Much like the POM case this thorugh Dannon's PR reps into a tizzy and they had to come up with all sorts of sources to "fix" the backlash.
ReplyDeleteI could not agree more when you say "Our job is to maintain positive relationships rooted in trust." There isn't anything more important than the relationship that the company or business has with the public and it would be extremely difficult to grow a company based on lies. Eventually everything gets found out.
Great Job!
Kacey - you are right on point with the Activia case you read. I read that, too, and one of the parts of their settlement is that they have to remove the "clinically" and "scientifically proven" from their advertisements of Activia.
DeleteHowever, I'm not sure that is enough to educate people on the fact that Activia doesn't do what Dannon claims it does. I mean, there are SNL skits about Activia and how it...works. That in an of itself is advertising, and it's something that sticks in the public's mind. I imagine that most of us in this class had no idea about the lawsuit until we researched this subject for this class. If that's the case, then that means that the majority of the public has no idea about this, and will still continue to buy Activia for it's bathroom magic.
Great post Teddy! Your information and our readings really have shown the importance on knowing and understanding a wide range of laws in our field so we do not have any violations. Even though we do not have the formal regulations of a public relations committee of sorts, we are still held accountable for our actions in communications under the realm of various laws. We have to have solid communication with our clients and all other departments that work in promoting their products in order to avoid any crisis. I find it interesting how much ethics really does play a role in how we handle ourselves and no matter what we discuss during our readings and post it always circles back to that. Again great post!
ReplyDeleteKatherine - you're right. Ethics are behind actions in our professional and personal lives. Most of the time, they are one and the same. If we have strong ethics in our personal lives - honesty, loyalty, etc. - then those will carry over into our personal lives.
DeleteYou know how when someone tells you that you can't do something, it makes you want to do it even more? I think there is a sort of feeling about that when it comes to FTC and FDA regulations. Companies, and even individual bloggers, are going to try to get away with as much as they can regardless of the legal ramifications. It's our job, as PR professionals, to not only educate people on the legal aspect of the regulations, but to also encourage smart and ethical choices.
Upon reading this blog posting, my first thought was to the readings this week and the Direct-to-Consumer (DTC)marketing. The U.S. is only one of two countries in the world that even allows DTC marketing/ads, but what is to stop bloggers, like the Petersiks, if they happened to write about healthcare or medical issues? People who are as successful at blogging as they appear to be, with 5 million hits a month, could be very persuasive to people with who their credibility is already established. Even if they clearly identify an article or an ad as an endorsement, I think either the appearance alone or the discussion of a product that would clearly fall under the guidelines of the DTC marketing could be equally, or possibly more powerful than if the product was marketed and mailed directly from the manufacturer. So First Amendment protection, commercial speech, or regulated under the FDA, FTC, or other code? I think we will start to see these clearly delineated in the future and, I’m afraid, possibly regulated by the government to some degree. Great job, Teddy!
ReplyDeleteBeth - I'm a little confused on your response, but I think what you are trying to say is that bloggers may stray from their topic to write about other opinions, even healthcare and/or medical issues.
DeleteIf that's what you are saying, then that is a very interesting point. Companies may try to approach influential online personalities to influence alternative agendas, even if it has nothing to do with what they normally write about. However, I'm not sure how long that would last because that would be a major red flag to the FTC. I think at first it would go unnoticed, but as blogs start to get more regulated, I think that tactic would be quickly nixed.
Also, thank you for bringing up DTC marketing. I think the generation of 20-50 year olds have a decent grasp on the "junk-mail" that fills our mailboxes. However, I think senior citizens, or people who may not know how to weed out the cr*p are easily fooled. It's a vicious way of preying on the vulnerable and I'm glad that the FTC has cracked down on that.
Teddy, I was simply driving your point home by adding that regular people can be influenced by even the blogs they read. I was thinking of how many thousands, hundreds of thousands, or millions of people could potentially read blogs that they believe to be credible and see articles written in support of (say) pharmaceuticals. They bloggers are regular people, not regulated by the government, yet they have clear influence on their readers because of the credibility they have based on the number of readers/their success as a blogger - even if they have no medical credentials. (and apply this to any industry)
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