December 1st, The FTC, Testimonials and your Blog/New Media
December 1, 2010 is the date your blog and all new media advertising meets new enforcement and scrutiny. Meet the Federal Trade Commission 16 CFR Part 255 "Guides Concerning the Use of Endorsements and Testimonials in Advertising". Much of the "guide" applies to celebrity endorsements and the use of "disclaimers" such as those which say "results not typical".
The word "endorsement" is used 188 times in 16 CFR 255 and the word "testimonial" is used 92 times. Where the real danger comes in, of course, is if someone complains to the FTC about something they read on your blog, Facebook, Posterous or any other New Media outlet. You and I, reader, both know there are "testimonials" even here on AR which are not even from real customers or are using real customer's names but they have no idea those testimonials exist. That is the focus of 16 CFR 255 in addition to endorsements and testimonials on late night television.
It has been noted that it is difficult to determine how much deception actually occurs from false testimonials and I am sure it would be very difficult and costly to prove a violation of FTC regulations on a small basis for individual blogs. The best way to avoid violations is to solicit testimonials from your clients that you can keep on file or to use a third party company like iKarma for example.
Ken Cook - Georgia - FHA, USDA, VA and Conventional Home Loans (678) 439-8683
8 Comments on Here Come The Blog Cops! December 1st FTC Changes
NOV
09
2009
Do you know what the rules are with testimonials? Do you actually have to get written consent to use one? I have yet to put any up myself because I'm unsure!
All of this seems complicated enough to me without adding in all of that. I will just continue to be careful about what I write and see where it all goes.
By maintaining a great relationship with our past client, using their testimonials should not be a problem...or at least I would hope that to be the case.
Hi Lisa - I do wonder when I see that someone has several testimonials on their profile, but they pos tin their blog that they are just starting in real estate. "Got my license just last week" someone will say, but there are testimonials talking about all the great work he or she did to find them a house and get the escrow closed on time.
To me this is simply dishonest. Now I know that some folks may feel they need to have testimonials in order to get business, but if they do good work, they will certainly get letters and emails from their clients praising them. All they have to do then is to ask the client if an excerpt can be included on their profile. And be selective. It is no more impressive to see 30 testimonials on a profile that to see 5 or 6. Prospective clients are more interested in what you will do for THEM.
Susan- I haven't seen that. But that is pretty deplorable. I just keep 2 or 3 testimonials on hand. That's really all I need. I just make sure I have something from a listing client, something from a buying client, and maybe something from a specialty property. =)
I keep my client testimonial emails and letters in their file just in case. I try to stay in touch with them via email and snail mail a couple of times through the year. More often than not my clients end up as my friends.
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Do you know what the rules are with testimonials? Do you actually have to get written consent to use one? I have yet to put any up myself because I'm unsure!