the ethical & legal implications of womm

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Instructed by Sam Ford.

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Page 1: The Ethical & Legal Implications of WOMM

The Ethical (& Legal) Implications of WOMM:

What You Don’t Know Could Hurt You

Page 2: The Ethical & Legal Implications of WOMM

2

Sam Ford

Director of Audience Engagement,

Peppercomm

Co-Chair, Word of Mouth Marketing

Association Ethics Committee

@Sam_Ford

[email protected]

Page 3: The Ethical & Legal Implications of WOMM

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My organization, Peppercomm, is a member of the Word of Mouth

Marketing Association (“WOMMA”) and currently am co-chair of its

Ethics Committee My use of the WOMMA name/logo and my

participation here is made possible with the permission of

WOMMA, but the opinions presented here are my own, and not

necessarily those of WOMMA. Please also note that my primary

focus here is on sharing best practices regarding ethics and not

providing legal counsel. I am not a lawyer. You should

independently consult with your own lawyer or advisors for your

organization’s specific legal and regulatory needs.

Page 4: The Ethical & Legal Implications of WOMM

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Common Regulator Themes

• Social media is subject to the same rules that apply to traditional media

• Establish documented policies and procedures

• Train representatives and make them aware of responsibilities

• Disclose/disclaim to avoid entanglement & adoption

• Monitor and archive all business communications

Page 5: The Ethical & Legal Implications of WOMM

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Page 6: The Ethical & Legal Implications of WOMM

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Transparency

• Those with material connections should disclose that tie when talking about a

company, its products or services, or its competitors

• Includes employees but also business partners/agencies/vendors

• Also includes third parties the company has engaged with

• Applies to sponsored/paid marketing activities as well

• When in doubt, err on the side of transparency

Page 7: The Ethical & Legal Implications of WOMM

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Making Necessary Disclosures

• Clear and conspicuous

• Close to each claim made

• Plain language/in ways that you can assume the audience will understand

Page 8: The Ethical & Legal Implications of WOMM

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Truth & Substantiation

• Have facts to back up any claims made before you start making them

• All those with a material connection to the company who may make such claims

must have accurate information to back it up

• Statements made by external people must reflect their honest opinions (i.e. you

can’t pay or provide goods for review in exchange for only positive reviews)

• Applies to sponsored/paid marketing activities as well

• Don’t amplify mistruths

Page 9: The Ethical & Legal Implications of WOMM

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Disclose All Material Terms

• When possible, put any qualifying information into the original claim itself

• Otherwise, provide clear and conspicuous disclaimer that lets the audience know

there is other information they need and which directs audience to further

information

• Also includes third parties the company has engaged with

• Applies to sponsored/paid marketing activities as well

• When in doubt, err on the side of transparency

Page 10: The Ethical & Legal Implications of WOMM

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Responsibilities of Companies/Brands

• Institute company social media policies/guidelines

• Ensure any business partners have similar policies in place

• Educate all employees, agencies, partners, vendors, and external parties you

engage with

• Reasonably monitor for how these parties are communicating about your

company

• Make commercially reasonable efforts to correct situations in which transparency

is lacking

Page 11: The Ethical & Legal Implications of WOMM

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Celebrity Endorsements

Page 12: The Ethical & Legal Implications of WOMM

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Reviews

• 19 Companies paid $350K in penalties

• Reviews were found to be fake and misleading

• Brands and agencies are responsible for reviews that are placed by vendors

Page 13: The Ethical & Legal Implications of WOMM

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Native Advertising

Image is logo of What’s This?! Media

Page 14: The Ethical & Legal Implications of WOMM

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5 Key Steps to Creating Ethical

Communications

1. Don’t just react to regulation; develop proactive, commonsense policies.

2. Use social media especially as a listening tool.

3. Emphasize internal coordination in your storytelling.

4. Educate partners on proper disclosure, policies, and approaches.

5. Prioritize empathy; look at all your strategies and communications from

the audience’s perspective

Page 15: The Ethical & Legal Implications of WOMM

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Sam Ford

Director of Audience Engagement,

Peppercomm

Co-Chair, Word of Mouth Marketing

Association Ethics Committee

@Sam_Ford

[email protected]