Law Requires Disclosure of Affiliate Marketing Links, Word-of-mouth and Paid Reviews
The bottom line, the FTC is pushing to make companies disclose any compensation received when promoting a product or company. While this is not a new law, the FTC wants marketers to know how it intends to interpret existing legislation.
…companies engaging in word-of-mouth marketing, in which people are compensated to promote products to their peers, must disclose those relationships…Word-of-mouth marketing can take any form of peer-to-peer communication, such as a post on a Web blog, a MySpace.com page for a movie character, or the comments of a stranger on a bus.
This certainly impacts word-of-mouth marketing companies more than anyone else, but it could also effect affiliate marketers. And what about all of those pay-per-review sites that are popping-up. PayPerPost.com is going to have to change its model to force reviewers to disclose their relationship.