How FTC Rules Affect Employee-Generated Marketing

By Nick Peterson and Brandon Moss (July 9, 2018, 1:28 PM EDT) -- For many businesses, employees are a valuable marketing asset. When first launching its food delivery app, Uber Eats, Uber Technologies Inc. found it difficult to acquire new food delivery drivers at a rate that matched their growth. Rather than pay for traditional advertisements, Uber utilized its own employees to help advertise the need for food delivery drivers. Uber found success in locating Uber Eats drivers by reimbursing Uber employees the cost of meal delivery orders if the employees took time to encourage the delivery drivers to also drive for Uber Eats. While Uber's innovative marketing approach was focused on finding more Uber Eats drivers, other companies have used their own employees to market products and services. Employees' insight into their business can be valuable to consumers, and there are fewer costs associated with their endorsements. As such, companies have begun to encourage their employees to post on social media, as well as leave product/service reviews on websites like Amazon and Yelp. Employee marketing, however, has created new issues, and the Federal Trade Commission has expressed concerns that this type of advertising can be deceptive to consumers....

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