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Be careful what you say about your product’s features and benefits – don’t get caught by the feds

In 2009, the Federal Trade Commission (FTC) revised its guides governing endorsements and testimonials for merchants. The timing of the revision is noteworthy: the previous guidelines date back to 1980, before anyone even heard of the Internet, let alone Facebook. Your online marketing might have the best intentions, but the feds could flag any overselling efforts.

Why the FTC update and change?

1) Not everything online is yours to use

Celebrity images or endorsements. Do you think that a photo of Beyoncé or Tim Tebow will attract attention and enhance the image of your brand? Or maybe you want to use a classic rock song as the background for your YouTube video? At best, you could be requesting a cease and desist letter, and at worst, a copyright infringement lawsuit. When it comes to sponsorships, it goes without saying that using someone’s image in your marketing implies sponsorship that may not exist. If you’re looking for actual endorsement, the FTC’s detailed guidelines cover honesty of opinion, reliability of claim, and disclosure that the celebrity is a paid spokesperson.

The misdeeds of social networks. To take a look at how social media has changed the face of marketing, you only need to look at what the FTC is looking at these days. According to Mashable, some questionable practices that have come to the attention of the agency include “flogging,” which is blogs that exist solely to promote a product or service; and “astroturfing,” in which fake customers post misleading or biased reviews on sites like Yelp.

2) Claims need justification

Marketing Claims. “Natural”… “organic”… “green”. Words like that can bring images of ecological, sustainable and chemical-free products. But spreading unsubstantiated claims can get you in trouble, as Neutrogena recently discovered. The cosmetics company was fined $1.8 million for describing some of its skin care products as “natural” when they contained what the lawsuit called “chemically derived synthetic fragrances.”

As for “green” marketing claims, the FTC wants you to provide “competent and reliable evidence” of your claim, in the form of reliable scientific evidence, defined as evidence, analysis, research, studies, or other evidence when you claim that your product it’s green.”

Well, better and better. The subtle wording of parity claims is an established form of marketing. Take Brand X’s claim that “no battery lasts longer.” Does that mean brand X’s battery lasts longer than brand Y’s? Nope; batteries are generally identical regardless of brand. As a statement of parity, “no battery lasts longer” simply means that Brand Y (and any other brand) is likely to last as long as Brand X, but not longer.

Parity claims abound in marketing: “No pain reliever works faster.” “Get the best chocolate flavor.” The FTC generally doesn’t care about “better” parity claims. But superiority claims of being “better” than a competitor must be backed up with accurate and unbiased evidence.

Some companies push the good/better/best envelope too much. When Ford once claimed that his car was “700% quieter,” the FTC asked for clarification. Ford had to admit that they meant that the interior of the Ford was 700% quieter than the exterior, not a very convincing statement!

Carefully craft your content

The vast majority of sellers are never cited by the authorities, so running a clean campaign is not that difficult to achieve. When you describe your features and benefits carefully, providing an accurate description without exaggerating or using unethical tactics, you will increase your company’s credibility and encourage new business.

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