Since humans began communicating, people have shared tips and testimonials through word of mouth (WOM). Social media including blogs, Twitter, Facebook, YouTube, etc., have increased the potential and impact of word of mouth. Companies and organizations have recognized this and increasingly utilize and mobilize advocates in providing WOM endorsements and testimonials.

Now, the FTC is proposing regulations for online endorsements and testimonials. The PR and social media world is buzzing with news of the guidelines. A final ruling is expected later this year. The proposed guidelines place personal liability on bloggers and marketers for false testimonials and require clear disclosure of any relationship between bloggers, advocates and marketers.

The Word of Mouth and Marketing Association (WOMMA) recently reviewed and amended its code of ethics that addresses some of the issues surrounding endorsements and testimonials. This review was to ensure WOMMA members and industry leaders follow and understand ethical practices, as well as abide by future FTC guides.

TVG is a member of WOMMA and I serve on the WOMMA ethics committee that helped review the codes. In order to most clearly address the upcoming FTC guides, the committee amended the WOMMA code to read, “We stand against marketing practices whereby the marketer or its representatives provide goods, services or compensation to the consumer to make recommendations, reviews or endorsements without full, meaningful, and prominent disclosure.”

To learn more about the practical applications of current regulatory and legal events surrounding word of mouth, including the FTC’s proposed endorsement and testimonial guidelines, visit WOMMA’s new blog, DiResta the Law.