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IPA warning: buzz marketing techniques illegal (UK)

 

Posted on April 4, 2008
Cordula Werle

 

On April 2nd the British Institute of Practitioners in Advertising (IPA) launched a warning that is relevant to anyone involved with word of mouth advertising: in the UK, restrictions on commercial communication via the internet, social networking and word of mouth communications are to become stricter under a new law; in some cases they may even become illegal.

Both buzz marketing and advertising via social networks will fall under the Consumer Protection from Unfair Trading Regulations that will enter into force on May 26 2008. Existing UK legislation already requires that any commercial message needs to be immediately identifiable as such. The new law goes even further, stating that ”falsely claiming or creating the impression that the trader is not acting for the purposes relating to his trade, business, craft or profession, or falsely representing oneself as a consumer” is now a criminal offense.

One particular clause in the regulation will make the following activities illegal:
- Seeding positive messages about a brand in a blog without making it clear that the message has been created by, or on behalf of the brand.
- Using “buzz marketing” specialists to communicate with potential consumers in social situations without disclosing that they are acting as brand ambassadors.
- Seeding viral ads on the internet in a manner that implies you are a simple member of the public. Punishments are to be in the form of heavy fines and possibly even prison sentences.

To escape the heavy regulations on traditional advertising, many marketers have turned to the web, and in seeking new ways of making profit some did not resist the temptation of endorsing unethical and misleading communication. It’s these black sheep of the online advertising industry that shall be kept in check by the new law. However, with tighter regulations even honest communication agencies are at risk to unwillingly and/or unknowingly break the law after May 2008. They are strongly advised to make themselves familiar with the new legislation and asses whether their activities within these areas comply with the new regulations before they are signed into law. Click here to view the IPA’s full briefing note on this issue.


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1. Monday 19 May 2008 attime 10:14, by Susan Singleton

The regulations introduce a new criminal offence of:

"Falsely claiming or creating the impression that the trader is not acting for purposes relating to his trade, business, craft or profession or falsely representing oneself as a consumer" (sched 1 para 22).

However the first port of call will usually be a complaint to the company advertising. The second would be an ASA complaint and only then is it likely for persistent offenders that a criminal prosecution will follow.

Identifying that the item is advertorial or the person posting is connected will remove the risk. So if I say there is a good half day training course in London on the regulations which come into force on 26 May on 11th June at which DBERR (DTI) are participating I would break the law when in force. If instead I say I am organising it I do not. www.singlelaw.com

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