FTC's Social Media Promotion Guide Has Marketers Confused

Law360, New York (July 31, 2015, 5:46 PM EDT) -- The Federal Trade Commission is taking a closer look at paid product reviews on social media, but its new guidance on rewarding consumers for an endorsement on Facebook or Twitter leaves companies guessing at how to use new media channels without running afoul of the agency, attorneys say.

In May, the FTC revised its advertising endorsement guidelines to address for the first time the tricky topic of rewarding consumers for endorsing a product on social media — only to say that while consumers using social media to support a product or brand as a part of a loyalty program “probably” requires...

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