Which Parties Are Liable for Deceptive “New Media” Endorsements?
The FTC has noted that it recognizes that advertisers do not have complete control over the content of endorsements made through word-of-mouth and user-generated content media, such as blogs, “street teams,” and social networking sites. Nonetheless, the agency takes the position that an advertiser may be liable for deceptive statements (including endorsements that are not accompanied by material connection disclosures where necessary) made through such media channels if the advertiser initiated the process that led to the endorsements – by, for example, providing free products to bloggers or individuals enrolled in the advertiser’s word-of-mouth marketing programs. However, the FTC has stated that a marketer’s establishment of appropriate policies and procedures relating to “new media” endorsers would be considered in the agency’s decision as to whether law enforcement action is warranted. The procedures can include regular monitoring of endorsers and measures to be taken in the event
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