Someone you respect online shares in his blog post that a product he’s using is awesome. You value this person’s opinion and are modeling your business development after his advice. Would his recommendation play a decision in whether or not you purchase the product? What if you knew the company selling this product was letting him use the item for free in exchange for promotion?
Let’s say a friend on Snapchat keeps telling everyone how much money a new app will save all of us when it comes to buying gasoline. You trust her and always place a great deal of weight on her recommendations. Would you buy and download the app? What if she worked for the company that sells the app. Would you want to know about this relationship? Would it affect your purchasing decision?
The answer to these questions is probably a big fat “yes” and this common-sense premise is at the heart of the Federal Trade Commission’s (FTC) Endorsement Requirements. If you’re thinking about endorsing someone else’s products or services, click here to view, download and read the FTC Guide (PDF format).