FTC Disclosure Policy Effective Dec. 1

The FTC disclosure policy, which goes into effect tomorrow, will start penalizing companies, not the individuals who make the undisclosed endorsements. This has come to the attention of the media when tennis star Serena Williams recently tweeted twice about Nabisco's 100 Calorie Pack snacks without disclosure. In fact, Serena and her sister, Venus Williams, as well as Eli and Payton Manning are "brand ambassadors" for Nabisco. They appeared in various Nabisco commercials, including the Oreo Double Stuf Racing League campaign. The FTC keeps stressing that the celebrity in blogs, tweets or otherwise must let consumers know that they are singing praises for a product because they are being paid to do so! It was only after buzz about her tweets that she also mentioned that she was shooting the commercial with her sister.

Miley and the FTC Regulation

In my last post, I described the new FTC regulation that will go into effect this December and it's actually having an immediate effect on celebrities. For some teen fans, it was an enormous disappointment to see Miley Cyrus quit her Twitter account a few days ago. Her family members and fans questioned why Miley deleted her account and she explains her reasons in a YouTube video, in which she raps an explanation for her actions. The video is painful to watch, might I add. The reason why I mention this video is that she offers countless reasons as to why she deleted the account, such as her need to live her own personal life and not for the entertainment of others. She also confirmed that no one else influenced her decision.

After this elaborate explanation, it turns out that Miley Cyrus decided to stop using Twitter because of the new FTC regulations to go into effect. Rather than having to disclose all of the products that she was being paid to endorse on her Twitter account, it was decided that it was better to close the entire account. The FTC requirement probably would have referred to every "just about anything the spoiled brat wears, eats or tweets about," as the author of the article kindly puts it.

I'm beginning to realize how many companies use celebrity endorsements without our knowledge. For those who followed Miley on Twitter may have seen her comments or observations about Wal-Mart, for example, without even knowing that she was being paid to mention the store. This is almost a form of subliminal advertising and a way for companies to reach consumers inconspicuously so that we do not tire of seeing/listening to ads. I'm interested to see how else this FTC requirement affects the power and meaning of celebrity endorsements.

You Better Not Lie, I'm Telling You Why...

Starting December 1st, 2009, the Federal Trade Commission is going to hold advertisers accountable to the content of their testimonials. According to Ad Age, testimonials from celebrity endorsers can't just say "results not typical." Instead, the endorser must report precisely how effective the product will be. For example, for products that aid in losing weight, promoting hair growth or reducing acne, the company is required to disclose how effectively the product works for the average user. Jared may have lost sixty pounds eating Subway sandwiches, but does the average Subway consumer typically lose that much? Probably not.

I think that this is an interesting proposition because many ads and their celebrity endorsers may lose their persuasive power if the products are portrayed to produce realistic, rather than dramatic results. Would women have signed up for Jenny Craig, for example, if they had known beforehand that they couldn't lose the same weight that Kirstie Alley did on that food and fitness plan? When a celebrity sells, he/she is usually selling a product that implies access to flawless beauty, untouchable popularity and quick resolutions to big problems. Will the endorsement have the same effect if the celebrity plainly says: "This Neutrogena product only clears the skin of 50 percent of those who use it" or "This weight loss plan only guarantees the average individual to lose up to 15 pounds," will consumers still feel compelled to buy? Aside from this, I think that the FTC plan definitely seems to answer our timeless question: Does the celebrity really use that product and to get those results?

In addition to this, the FTC mandates that companies are much more truthful about those who are secretly promoting their products, especially on blogs. There are so many people (including celebrities) who are speaking highly of certain products, but these "word of mouth" testimonials are actually being propelled by the company, not by product users who are sharing positive comments on their own free will. For example, we know that Tiger Woods starred in Buick ads, but if he happens to mention how much he loves his new Rolex on Twitter, then he has to be clear that he's an endorser for Rolex. I think this is a good policy. And perhaps I can now understand why Burger King makes their endorsers take live lie-detector tests.