Buzz Marketers Told to Disclose
Submitted by Diane Farsetta on
The U.S. Federal Trade Commission directed "companies engaging in word-of-mouth marketing, in which people are compensated to promote products to their peers," to "disclose those relationships." Otherwise, it could be deceptive marketing, as people are more likely to trust product endorsers "based on their assumed independence from the marketer," according to the FTC.