Online marketing, specifically blogs and other forms of social media marketing, are becoming the primary vehicle for small business owners to advertise their products and services. As the recession keeps dragging on, consumers are more meticulous when it comes to their shopping…and they’re turning to online sources more and more to carefully research products and see what others are saying about particular products or services before making a purchasing decision.
Therefore, blogs and other social media sites like Facebook and Twitter have become powerful marketing engines and have helped many businesses maintain their position in this rough economy.
But the Internet has hardly any regulation – consumers have to judge for themselves whether the reviews they see are legitimate, which is usually gauged through the quality of the site.
In an anticipated move Monday, the U.S. Federal Trade Commission voted 4-0 to issue new rules to update the longstanding principle of disclosing “material connections” between advertisers and endorsers. Decisions will be reached on a case-by-case basis according to the new rules. But now, the FTC will consider the payment a blogger may receive from a company for writing about a product an endorsement.
So, bloggers will now have to disclose any “material connections” (i.e. payment or free product) they have with the seller or face up to an $11,000 fine by the FTC.
This new rule will certainly affect fledgling new businesses such as yours but it’s nothing too major. Complying shouldn’t be a big deal but to think the FTC is going to monitor 133 million plus blogs and growing is almost laughable. These new rules will go into effect December 1st.
Nevertheless being honest about your products and services is good business anyway no matter the regulation. Operating with integrity will build your long-term business much better.
If you’re running into roadblocks in trying to figure out how to market your small business online, we invite you to take a look at our sister company SEO Advantage. This premier search engine optimization firm helps businesses grow their revenues by reaching more customers through online searches.
And it’s easy to incorporate online with MaxFilings’ online incorporation system where you can easily incorporate a business online in all 50 states in 10 minutes or less.