A growing but controversial trend on the Internet is receiving a great deal of scrutiny from the government. The trend involves paid or sponsored endorsements, testimonials, and more on blogs and various social media sites. The Federal Trade Commission began investigating these practices earlier this year and announced it would release new rules and guidelines to update the current legislation.
As a result, marketers, advertisers, and bloggers alike are all raising concern. Is it necessary for the government to intervene? A problem does exist since consumers are directly affected by paid and sponsored posts, but is government regulation the answer?
Brian Solis, the Principal of FutureWorks, conducted a study on Facebook to explore possible solutions. He found that while most everyone agreed that disclosure was the key to solving the issue, they could not agree on a standard format.
Will disclosure be included in the FTC’s new guidelines? Could these issues be resolved without government intervention?
Since the FTC is expected to release their guidelines at any time, we might not have to speculate for much longer.