Annotation of FTC Statement on Hyundai and Bloggers | Christian Nossokoff | April 20, 2016

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Annotation of FTC Statement on Hyundai and Bloggers

Annotation of FTC statement regarding a letter from Hyundai asking if they can use bloggers to advertise

By Arielle Weg

 

  • This is a letter that was sent to the FTC from the staff of the Bureau of Consumer Protection to Hyundai Motor America who uses bloggers to advertise their cars. They asked about using gift certificates to give to bloggers in return for encouraging them to link to Hyundai videos or comment on upcoming Super Bowl ads on their blogs.

 

  • Acording to the FTC statement, section five of the FTC Act requires the disclosure of any material connections encouraging the endorsement of a product.

 

  • The statement said, the FTC closed the case, seeing that Hyundai didn’t know about the use of the incentives, not many bloggers received these gift cards, and those who did recieve the cards generally disclosed the information.

 

  • The individuals who work for the media firm hired to conduct the blogging campaign were those at fault, not necessarily Hyundai, according to the FTC statement. These actions did not reflect the Hyundai social media policy, which calls for bloggers to disclose any deals, thus not breaking FTC rules.

 

  • Companies who want to comply with the FTC Endorsement Guidelines must mandate disclosure policies, make sure people who work with and for them understand these policies, and monitor what those people do. It is up to the company to strictly follow the FTC guidelines, according to the FTC statement.

 

Citation:

Fair, Lesley. "Using Social Media in Your Marketing? Staff Closing Letter Is worth a Read." Federal Trade Commission, 22 Dec. 2011. Web. 05 Apr. 2016.

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April 20, 2016

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Christian Nossokoff

Student at American University

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