FTC Ruling on Endorsements - How Does it Impact You?

As of December 1, 2009, the FTC put into effective Guides Concerning the Use of Endorsements and Testimonilas in Advertising.

The guidelines detail many examples of what is an endorsement vs a testimonial and the importance of truth in comments and the clear disclosure when someone is writing on behalf of a company or that they have received products or services free of charge.

Are you protected should one of your employees comment about your company's products or services either positively or negatively? Do you have written guidelines within your company's policies that outline the expectations and consequences?

Employees that create positive buzz about your company and actively seek to build relationships with consumers is a GREAT THING for your business so long as they follow the guidelines and disclose that they are an employee of your company.

You have two options:

1. Forbid all social media activity
2. Provide guidance and encourage your employees to engage in conversation with consumers about your products via social media

If you choose the 2nd option - then you need a Policy for Social Media.