WOMMA Applauds FTC's Call for Transparency in Revised Advertising Guidelines

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Mon Oct 5, 2009 3:37pm EDT

WOMMA Ethics Code Provides Marketers with a Practical Way to Address FTC
Guides







CHICAGO, Oct. 5 /PRNewswire/ -- The Word of Mouth Marketing Association
(WOMMA), www.WOMMA.org, applauds the Federal Trade Commission (FTC) for
revising its Guides Concerning the Use of Endorsements and Testimonials in
Advertising that can be found at:
http://www.ftc.gov/os/2009/10/091005endorsementguidesfnnotice.pdf


In its commentary, the FTC referenced and adopted WOMMA's guidance in several
instances, looking favorably upon the Association's own Ethics Code, and
adopting WOMMA's suggestion that only "sponsored" communications should fall
within the scope of the Guides.  Therefore, adherence to the WOMMA Ethics Code
is a critical first step for businesses and marketers in complying with the
updated FTC Guides.


Several fundamental principles of WOMMA's Ethics Code, such as the importance
of transparency, disclosure and honesty across all media, are now required by
the FTC.  WOMMA believes the updated Guides will usher in a new generation
word-of-mouth of viral and social media marketers who place the highest
priority on ethical practices.  WOMMA President Elect Paul Rand explained,
"The greatest value we can provide to our 400-plus members is helping them
navigate the uncharted waters of social marketing.  WOMMA takes great pride in
not only equipping members with a venerable compliance 'how-to,' but also in
the collaborative way we went about influencing policy, itself."


WOMMA General Counsel Anthony DiResta of Manatt, Phelps & Philips added,
"These new FTC Guides constitute a sea change for certain marketing practices
that are widespread and effective in all industry sectors.  It's clear that
confusion will result in their application by bloggers and brands alike, and
there are even rumblings that legal challenges may be brought.  Thus, in this
period of uncertainty, meaningful self-regulation and practical clarity are
essential."  Diresta makes one point clear for marketers, "Transparency and
honesty are essential in communications by consumers or experts in all media
formats.  For those in the advertising industry that use word of mouth, viral
marketing, or social media platforms, WOMMA's Code of Ethics is an excellent
and practical way to evaluate compliance with these new Guides."


WOMMA is confident these Guides will also help the Association enforce its own
Ethics Code.  According to Joe Chernov, chair of WOMMA's Member Ethics
Advisory Panel, the Association's primary focus is on educating members on
best practices; however, it must also ensure its members are adhering to those
practices.  Chernov concluded, "Marketing ethics is no longer an ideal.  It is
now a mandate." 


Over the next several months, WOMMA will lead industry discussions on the
topic of what constitutes adequate and meaningful disclosure.  This dialogue
will culminate in November at the association's annual Summit in Las Vegas,
when WOMMA will dedicate educational sessions to help marketers understand and
adhere to these new Guides.  In fact, Mr. Chuck Harwood, the FTC's Deputy
Director of the Bureau of Consumer Protection, is a featured speaker.


About WOMMA


WOMMA, www.WOMMA.org, is the leading trade association in the marketing and
advertising industries that focuses on word of mouth, consumer-generated and
social media platforms -- or marketing techniques that include buzz, viral,
community, and influencer marketing as well as brand blogging. The
organization is committed to developing and maintaining appropriate ethical
standards for marketers and advertisers engaging in such marketing practices,
identifying meaningful measurement standards for such marketing practices, and
defining "best practices" for the industry. 


Founded in 2005, WOMMA currently has approximately 400 members. They include
marketers and brands that use word-of-mouth marketing to reinforce their core
customers and to reach out to new consumers, agencies that deliver
word-of-mouth services and technologies, researchers that track the
word-of-mouth experience and offline and online practitioners.




SOURCE  Word of Mouth Marketing Association

Kristen Smith of Word of Mouth Marketing Association, +1-312-853-4400,
kristen@womma.org
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