he FTC has handed down an likely would mislead reasonable
advisory opinion that may consumers under the
have dire consequences for circumstances; and,
companies that employee
individuals who are involved in 2. A practice that involves a
blogging and promote those representation or omission that
companies products or services is of material importance to
while blogging. According to the consumers
FTC, this may hold true even if
these employees are undertaking The FTC continually and regularly
this blogging on their personal has found that a seller's failure
time and even if company to disclose a relationship that
management has no idea what is would materially effect a
going on. The FTC advises that consumer's opinion is deceptive.
such a blogger must make readers
aware of his or her connection In the case of the advisory
with the company whose products opinion, the specific concern was
or services he or she is the weight that a consumer will
endorsing. naturally give to a sponsored
endorser. The FTC Endorsement
The FTC has concluded in this Guides set forth:
advisory opinion that these
actions may constitute deceptive “(W)hen there exists a connection
business practices in violation between the endorser and the
of the FTC Act. The FTC Act sets seller of the advertised product
forth a deceptive business that might materially affect the
practice as being: weight or credibility of the
endorsement . . . such connection
1. A practice that represents or must be fully disclosed.”
omits material information that
A connection is deemed to exist The bottom line is that it
in most instances when the appears companies and businesses
endorser (here, a blogger) is have a duty to pro-actively warn
paid by the company responsible their employees about the perils
for providing the product or of making endorsements through
service or when an endorser has a blogging when their connection of
close business association (or a that business enterprise is not
relative with such an made public. In a similar vein,
association) with such a company. if the employee is making
Without a doubt, according to the negative statements about a
FTC, employees of a business have competitor, his or her
such a close business association association with his or her
and their connection must be made employers must be made public to
public when they make any avoid violating FTC regulations.
endorsement.
About the Author:
Robert Masud, Esq. is the principal of Masud & Company LLC, a law firm for the world of business, finance and the internet. Find out how our lawyers can help you at http://www.masudco.com
Read more articles by:
Robert Masud, Esq.
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