The Federal Trade Commission yesterday said that companies engaging in word-of-mouth marketing, in which people are compensated to promote products to their peers, must disclose those relationships.
In a staff opinion issued yesterday, the consumer protection agency weighed in for the first time on the practice. Though no accurate figures exist on how much money advertisers spend on such marketing, it is quickly becoming a preferred method for reaching consumers who are skeptical of other forms of advertising.
I’ve ranted about the PayPerPost, need for full-disclosure debacle a couple of times and have one more such rant in me, which I’m considering posting here later this week. However, if the FTC steps in, it may make my harangue moot. More to follow on this I’m sure.