FTC Revises and Targets Bloggers

MaureenA — Tue, 06 Oct 2009 09:00:00 GMT

The Federal Trade Commission on Monday updated its Guides Concerning the Use of Endorsements and Testimonials in Advertising – last updated 29 years ago. And this new revision now includes bloggers.

It’s an ongoing practice in the Web landscape that bloggers and Web professionals review products and services for payment of some kind. The FTC now views this practice as an endorsement. The revised guidelines now state those professionals must clearly disclose the relationship between themselves and the company providing the product or service.

Other noteworthy changes include:
- Simply stating “results not typical” on an ad is not good enough. Advertisers now need to clearly explain the advertised product or service is not what consumers should typically expect.

- If companies advertise results of research they sponsored, they must disclose this information to consumers.

- Celebrity endorsements also need to clearly state they are providing endorsements. The revision on this part of the Guides is that both the celebrity endorser and the advertiser can be liable for false claims. They also must explain their relationships anywhere the endorsement is taking place.

Stay up to date on the latest Internet trends:
Request a professional subscription to Website Magazine,
the most popular print publication on Web success.

Criminal? Half of Electronic Sites Break EU Laws

MaureenA — Wed, 09 Sep 2009 16:47:00 GMT

The BBC reported on a recent European Union investigation that highlighted more than half of websites selling electronics break European laws. The EU investigated 369 websites in 28 countries in May due to high levels of complaints on those websites by consumers as well as being large e-commerce websites.

The biggest offender among e-commerce merchants was the lack of explanation to consumers on their rights to refunds. Consumer laws in the European Union allow consumers to return product within seven days with full refund, and two years for repair or replacement.

The next biggest offenders among e-commerce merchants were explaining delivery charges and providing merchant contact information. If the merchants don’t correct these errors they face fines and possible prosecution.

In the U.S. the Federal Trade Commission regulates deceptive practices and consumer protection. E-commerce merchants should be aware and understand Section 5 of the Trade Act to guarantee they are meeting guidelines and not infringing on consumers. “We have a lot of information on consumer and business best practices. And any merchant – offline or online – should follow good practices,” says Betsy Lordan, Office of Public Affairs with the FTC.

The FTC has not done a full-scale investigation like the one by the EU however, it does provide investigation into deceptive practices if need be.

Stay up to date on the latest Internet trends:
Request a professional subscription to Website Magazine,
the most popular print publication on Web success.

'Net Features : federal trade commission act

FTC Revises and Targets Bloggers

Criminal? Half of Electronic Sites Break EU Laws