Ignorance Is No Excuse

I don’t think any of us like being deceived unless we’re watching a magic show. It’s especially angering when you find out that what you believed to be a trusted source has told you something based on someone paying them to do so. You might be aware that several years ago the Federal Trade Commission (FTC) issued rules about the need to clearly label paid social media posts as ads so that consumers aren’t deceived by ads masquerading as content.

English: Fined Stamp text

(Photo credit: Wikipedia)

Several companies have been fined as a result of failing to follow the rules. Lord & Tayor, for example, was fined because they paid 50 online fashion “influencers” to post Instagram pictures of themselves wearing the same paisley dress but failed to disclose they had given each influencer the dress, as well as thousands of dollars, in exchange for their endorsement. The folks at Warner Brothers were fined for failing to adequately disclose that it paid online influencers thousands of dollars to post positive gameplay videos on YouTube and social media. Over the course of the campaign, the sponsored videos were viewed more than 5.5 million times.

I bring this up because I saw a piece this morning headlined

Marketers ‘Unaware’ of FTC Social Media Guidelines Regulating Influencers

Only one in 10 know sponsored posts should be tagged as ads, study finds.

Seriously? These rules have been in place since 2009 and were updated in 2013. 60% of influencers – the people who are paid to put this stuff out there with their endorsement – are fully aware of the rules and do a good job of following them. The people paying them? Not so much.

But wait! There’s more! I found this especially perturbing:

A significant minority of influencers said it’s not uncommon for brands to ask them to hide the fact that their post is sponsored.

I’m not sure which is worse – ignorance of the rules or the willful violation of them. Either way, it’s really a problem. Ignorance of the rules is certainly no excuse. One could argue that consumers are sophisticated enough to understand that even traditional product reviews often came based on the product being made available to the reviewer for free. I think most folks assume that unless we’re into the realm of reviews posted by normal people on Amazon or Yelp or Trip Advisor, most “influencer” reviews or posts involve money changing hands. All celebrity endorsements do and seeing an athlete or actor endorsing a product, one can safely assume it’s an ad.

Maybe these marketers can shrug their shoulders and think of the fines as a cost of doing business. That’s short-sighted since the hit to their reputations is larger than the fine, whatever that fine may be. All of us need to know and follow the rules that are in place when it comes to paying people to promote our products. If we don’t the choice is to be labeled ignorant or sleazy, and neither is a great option. You agree?

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Filed under Consulting, digital media, Huh?

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