The Washington Post today is reporting that the FCC “said that companies engaged in word-of-mouth marketing, in which people are compensated to promote products to their peers, must disclose those relationships.”
Of course, word-of-mouth can be a powerful and positive force — if it’s genuine. The FCC is taking a stand against pay-per-post schemes, in which bloggers pretend to be disinterested parties, when in truth they are being paid to sing the praises of a particular product. Transperancy is a good thing, and it’s becoming more essential for businesses that must find new ways to connect with their customers and prospects. But there are a lot of grey areas here.


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