Friday, November 20, 2009

FTC Changes Advertiser Rules for Endorsements and Testimonials

This December, advertising and marketing will become more uncertain for many businesses. That is because the FTC is changing 30 year old rules on advertising with regard to endorsements and testimonials. The changes relate to transparency in disclosing real material connections between the advertiser and endorsers. This extends to internet marketing and the recent explosion in blogger rating and blogger testimonials for consumer products. Celebrity endorsers also face personal liability for the first time. Furthermore, important safe harbors such as "results not typical" no longer exist.

How the FTC chooses to enforce these new rules remains uncertain. However, internet marketers, advertisers, bloggers and celebrity endorsers need to retain a top FTC compliance lawyer to review all marketing materials before any new campaigns go live.

Thursday, November 19, 2009

Facebook Sued in Class Action

More details to follow but suffice to say, it looks like Facebook needs to take a harder look at its business partners. A federal class action lawsuit was filed against Facebook and Zynga over online game ads that Zynga propogates over Facebook. Apparently, the ads are not only deceptive but incur real financial injury to consumers in the way of unauthorized and disguised charges. This problem will only continue to grow as websites like Facebook struggle to figure out how the hell to make money before their venture capital dries up. For more information on internet law issues, contact an experienced internet law attorney.

Wednesday, November 11, 2009

Email Marketing Gone Wrong

Website Tagged.com got tagged hard by New York's Attorney General, fined half a million for deceptive email practices. Tagged.com appears to have stolen contact lists and then sent deceptive SPAM emails to unsuspecting web users inviting them to view photographs of friends. How lame can you get? Tagged.com is lucky to get off so light, spammers have been doing jail time lately.

Internet marketers, E-commerce sites and email marketers need to consult an experienced internet law attorney before launching any promotional campaign. Otherwise, an exciting promotion can go wrong and cost the website owner or email marketer thousands of dollars in fines and/or civil damages.