On Oct 5 the Federal Trade Commission announced revisions to the guidance it gives advertisers on how to keep their endorsement and testimonial ads in line with the FTC Act. The changes affect testimonial advertisements, celebrity endorsements and bloggers.
The revised Guides include examples to illustrate the principle that “material connections” (payments or free products) between advertisers and endorsers – connections that consumers would not expect – must be disclosed. The examples address what constitutes an endorsement when the message is conveyed by bloggers or other “word-of-mouth” marketers. The revised Guides specify that while decisions will be reached on a case-by-case basis, the post of a blogger who receives cash or in-kind payment to review a product is considered an endorsement. Thus, bloggers who make an endorsement must disclose the material connections they share with the seller of the product or service.
The Guides are administrative interpretations of the law intended to help advertisers comply with the FTC Act; they are not binding law themselves. In any law enforcement action challenging the allegedly deceptive use of testimonials or endorsements, the Commission would have the burden of proving that the challenged conduct violates the FTC Act.
Here are examples citing bloggers related to endorsements and disclosure of material connections
Expert endorsements.
Example 8: A consumer who regularly purchases a particular brand of dog food decides one day to purchase a new, more expensive brand made by the same manufacturer. She writes in her personal blog that the change in diet has made her dog’s fur noticeably softer and shinier, and that in her opinion, the new food definitely is worth the extra money. This posting would not be deemed an endorsement under the Guides.
Assume that rather than purchase the dog food with her own money, the consumer gets it for free because the store routinely tracks her purchases and its computer has generated a coupon for a free trial bag of this new brand. Again, her posting would not be deemed an endorsement under the Guides.
Assume now that the consumer joins a network marketing program under which she periodically receives various products about which she can write reviews if she wants to do so. If she receives a free bag of the new dog food through this program, her positive review would be considered an endorsement under the Guides.
Disclosure of material connections.
Example 7: A college student who has earned a reputation as a video game expert maintains a personal weblog or “blog” where he posts entries about his gaming experiences. Readers of his blog frequently seek his opinions about video game hardware and software. As it has done in the past, the manufacturer of a newly released video game system sends the student a free copy of the system and asks him to write about it on his blog. He tests the new gaming system and writes a favorable review. Because his review is disseminated via a form of consumer-generated media in which his relationship to the advertiser is not inherently obvious, readers are unlikely to know that he has received the video game system free of charge in exchange for his review of the product, and given the value of the video game system, this fact likely would materially affect the credibility they attach to his endorsement. Accordingly, the blogger should clearly and conspicuously disclose that he received the gaming system free of charge. The manufacturer should advise him at the time it provides the gaming system that this connection should be
disclosed, and it should have procedures in place to try to monitor his postings for compliance.
Example 8: An online message board designated for discussions of new music download technology is frequented by MP3 player enthusiasts. They exchange information about new products, utilities, and the functionality of numerous playback devices. Unbeknownst to the message board community, an employee of a leading playback device manufacturer has been posting messages on the discussion board promoting the manufacturer’s product. Knowledge of this poster’s employment likely would affect the weight or credibility of her endorsement. Therefore, the poster should clearly and conspicuously disclose her relationship to the manufacturer to members and readers of the message board.
Example 9: A young man signs up to be part of a “street team” program in which points are awarded each time a team member talks to his or her friends about a particular advertiser’s products. Team members can then exchange their points for prizes, such as concert tickets or electronics. These incentives would materially affect the weight or credibility of the team member’s endorsements. They should be clearly and conspicuously disclosed, and the advertiser should take steps to ensure that these disclosures are being provided.
You can download the new FTC guidelines here. (pdf)
In the interest of full disclosure, last April, I blogged about Pam Slim's book Escape Cubicle Nation, that I received at no cost.
Wednesday, October 21, 2009
Saturday, October 17, 2009
An irresistable upsell - leaves money on the table
I had to refurbish the utility trailer that I use to clean up the autumn leaves from my yard. I stopped in Home Depot to pick up a 1" spade drill bit. I already have a set of spade bits, but my 1" bit was just worn out. I expected to buy a single bit which was priced at $4.69/EA.
I noticed a 3 piece set adjacent to the individual bits at such a bargain price, I simply couldn't pass it up. The package of 3 bits, which included the 1", a 3/4" and a 1/2 inch, was priced at $5.97.
Those are all sizes that I use and my drills are usually dull, but I wasn't looking to replace them today. I couldn't pass up the opportunity to pick up two new bits for an additional $1.28 . The 1/2" and 3/4" bits were priced at $4.19 and $3.70 each. The cost of the 2 extra bits in the bundle was 16% of the individual pieces.
From a differentiation perspective, the shanks on the set are a little shorter than the individual bits. The shank length makes very little difference to me, this will only affect very rare instances when trying to drill through stock that's more than about 4" thick. In fact when I'm using my drill press, the shorter shanks are often easier to work with.
I have to wonder what Irwin and Home Depot were thinking when they priced this set. Here are some ideas:
Best,
Chuck
I noticed a 3 piece set adjacent to the individual bits at such a bargain price, I simply couldn't pass it up. The package of 3 bits, which included the 1", a 3/4" and a 1/2 inch, was priced at $5.97.
Those are all sizes that I use and my drills are usually dull, but I wasn't looking to replace them today. I couldn't pass up the opportunity to pick up two new bits for an additional $1.28 . The 1/2" and 3/4" bits were priced at $4.19 and $3.70 each. The cost of the 2 extra bits in the bundle was 16% of the individual pieces.From a differentiation perspective, the shanks on the set are a little shorter than the individual bits. The shank length makes very little difference to me, this will only affect very rare instances when trying to drill through stock that's more than about 4" thick. In fact when I'm using my drill press, the shorter shanks are often easier to work with.
I have to wonder what Irwin and Home Depot were thinking when they priced this set. Here are some ideas:
- It's definitely cheaper to package and deliver 3 bits on one card than one product per card.
- Manufacturing cost is a very small fraction of the retail price.
- Home Depot also offers Rigid auger bits which are a little more expensive than the spade bits. Home Depot sells the 1" diameter Rigid auger bit for $5.97. The Auger bits are promoted as 6x faster than a spade bit, and re-sharpenable. I'm not sure if Irwin was trying to grab more market share by differentiating from the higher Rigid price point.
Best,
Chuck
Tuesday, August 25, 2009
The doable to do list
Concise article on keeping an effective "to do list" by Gina Trapani, editor of Lifehacker.
I'll try the group function in XL to hide or show some of the details.
I'll try the group function in XL to hide or show some of the details.
Monday, July 20, 2009
Five best practices for communication with acronyms
How often have you been presented with unfamiliar acronyms without being told what they stand for? Acronyms, can streamline communications when used effectively, but acronyms create confusion, loss of productivity, and frustration when misused. Communications effectiveness and productivity can be improved by applying and promoting best practices when using acronyms. Before getting to the 5 best practices, it's helpful to understand some of the problems created when acronyms are misunderstood:
a) Different people may have different meanings for the same acronym which leads to confusion and mistakes. The medical profession has identified misunderstood acronyms as a serious source of medical errors.
b) People may assume they know the acronym and sometimes guess what it means, but if their guess is wrong, they proceed, thinking they understand the acronym, when their understanding is incorrect or incomplete.
c) By saving a few seconds, not defining an acronym, you risk losing the meaning of your message and the attention of your audience as they wonder what the acronym means.
d) The meaning of acronyms can be diluted over time. As some acronyms become ingrained within organizations, many people who use them, don’t know their correct meaning, and misuse them compounding the loss of communication effectiveness.
e) Acronyms create barriers to effective cross-cultural communication.
f) It is difficult, if not impossible, to build an effective culture based on cooperation and trust in the absence of clear understanding.
Five best practices for communication using Acronyms:
1. The best practice when employing acronyms in speech or writing is to define the acronym when it is introduced, then to use the acronym for subsequent instances. If you are not going to repeat the acronym, then consider if you really want to use it in the first place.
2. The key to applying acronyms effectively is to identify when their use is appropriate. Acronyms expedite communication within teams who work closely together, and are familiar with their meaning. When you are certain that you are speaking to someone who knows the acronym, by all means, use it to save time. However when writing, it’s better to define your acronyms. You may be writing to a team member, but your message may be forwarded to others who are unfamiliar with your terminology.
3. If you are uncertain if some members of your audience are familiar with your terminology, it’s better to err on the conservative side and explain acronyms. Even when the audience is from the same organization, they may not understand the acronyms and terminology.
4. Develop a culture that encourages people to ask what acronyms mean when they are not familiar.
5. Maintain a central reference for company and industry specific acronyms.
Let me know if you have recommendations for improving clarity and understanding when using acronyms.
Best,
Chuck
a) Different people may have different meanings for the same acronym which leads to confusion and mistakes. The medical profession has identified misunderstood acronyms as a serious source of medical errors.
b) People may assume they know the acronym and sometimes guess what it means, but if their guess is wrong, they proceed, thinking they understand the acronym, when their understanding is incorrect or incomplete.
c) By saving a few seconds, not defining an acronym, you risk losing the meaning of your message and the attention of your audience as they wonder what the acronym means.
d) The meaning of acronyms can be diluted over time. As some acronyms become ingrained within organizations, many people who use them, don’t know their correct meaning, and misuse them compounding the loss of communication effectiveness.
e) Acronyms create barriers to effective cross-cultural communication.
f) It is difficult, if not impossible, to build an effective culture based on cooperation and trust in the absence of clear understanding.
Five best practices for communication using Acronyms:
1. The best practice when employing acronyms in speech or writing is to define the acronym when it is introduced, then to use the acronym for subsequent instances. If you are not going to repeat the acronym, then consider if you really want to use it in the first place.
2. The key to applying acronyms effectively is to identify when their use is appropriate. Acronyms expedite communication within teams who work closely together, and are familiar with their meaning. When you are certain that you are speaking to someone who knows the acronym, by all means, use it to save time. However when writing, it’s better to define your acronyms. You may be writing to a team member, but your message may be forwarded to others who are unfamiliar with your terminology.
3. If you are uncertain if some members of your audience are familiar with your terminology, it’s better to err on the conservative side and explain acronyms. Even when the audience is from the same organization, they may not understand the acronyms and terminology.
4. Develop a culture that encourages people to ask what acronyms mean when they are not familiar.
5. Maintain a central reference for company and industry specific acronyms.
Let me know if you have recommendations for improving clarity and understanding when using acronyms.
Best,
Chuck
Wednesday, July 8, 2009
Yahoo email outage is pushing me to GMAIL
Although there are many reasons why I continue using Yahoo mail, they seem to be doing everything to convince me that I should quit using Yahoo as my primary email source and switch over to GMAIL. Let's see how long this lasts.
Yes, my connection to Yahoo mail is still functioning - I got your pop-up message didn't I?
I guess I'll copy the contents of my message over to GMAIL
Thursday, April 30, 2009
Escape from Cubicle Nation - offers more than an exit strategy for corporate employees
Pam Slim's new book Escape from Cubicle Nation From Corporate Prisoner to Thriving Entrepreneur has a lot to offer to corporate employees who aren't necessarily looking for an exit, but who are looking for ideas and practical advice on how to thrive within the corporate world. One example is the eye opening exercise Breaking the Grip of Destructive Thoughts from Byron Katie on pages 35 & 36, which provides a simple process for deconstructing doubts and turning around your point of view.Best,
Chuck
Update: EscapeFromCubicleNation.com appears to be offline just before 10:30 am EDT - I'm sure that Pam is doing everything possible to get this resolved ASAP, but I'm sure she is not happy about this. This is the last thing anyone wants on the day of their book launch.
2nd Update: The problem appears to have been fixed by early this evening.
Wednesday, March 4, 2009
Too much litter on Twitter
The world is going bonkers over Twitter, and frankly, I don't get it.
Robert Rosenthal posted this awesome video clip on his Freaking marketing blog.
Twitter could be useful, but there is so much drivel, I can't see how serious professionals can find it productive. (of course, Western Union once said something like that once about the telephone - "The telephone has too many problems to be considered a serious method of communication. The invention has no value for us")
We used to say there is a lot of litter in the literature. Now we can say with confidence: there is too much litter on twitter ©
Robert Rosenthal posted this awesome video clip on his Freaking marketing blog.
Twitter could be useful, but there is so much drivel, I can't see how serious professionals can find it productive. (of course, Western Union once said something like that once about the telephone - "The telephone has too many problems to be considered a serious method of communication. The invention has no value for us")
We used to say there is a lot of litter in the literature. Now we can say with confidence: there is too much litter on twitter ©
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