FTC asks for more funding from Congress
On July 22nd, David Vladeck, the FTC’s Director of the Bureau of Consumer Protection, testified before a senate subcommittee about the need for more resources to combat fraudulent and deceptive advertising. In the press release, it states,
The testimony also discussed Commission’s efforts to update its Guides Concerning the Use of Endorsements and Testimonials in Advertising. Based on the prevalent – and sometimes deceptive – use of third-party endorsements in advertising, the FTC adopted the Guides in 1980. Although the basic principles of the Guides still hold true, dramatic changes have occurred during the last three decades in how products are marketed – most notably, program-length infomercials, Internet advertising, word-of-mouth or viral marketing, and consumer blogs have all become commonplace. Vladeck testified that it also has become clear that “results not typical” and other disclaimers of typicality commonly used in endorsements and testimonials are not working as intended to prevent consumer deception.
The FTC’s efforts recently clearly demonstrate that they’re ramping up their efforts to police all forms of marketing. How does this affect your business? Is it too little too late? Are they overreacting?
Tags: david vladeck, deceptive advertising, ftc, results not typical
July 23rd, 2009 at 8:23 pm
I saw part of Vladeck’s testimony yesterday, and opposing him was a former FTC guy (don’t recall his name, but he was high level), and they were in a heated argument over whether the FTC needs new rules (Vladeck’s position), or if they should focus on enforcing the current rules. Vladeck said the current rules make prosecution too cumbersome, time consuming and expensive, the former FTC guy said they have all the tools they need. I don’t know who’s right, but my opinion is the FTC should shut down the Amway tool scam like the UK did 2 years ago. There is no excuse for dragging their feet. I think the liberal administration and embarassing Madoff experience (SEC) have both lit a fire under their backsides.
July 23rd, 2009 at 11:58 pm
Where did you see the testimony? C-SPAN? I’d like to see it.
July 24th, 2009 at 3:11 pm
Here’s the link: “http://www.c-span.org/Watch/Media/2009/07/14/HP/A/20853/Senate+Commerce+Subcmte+Hearing+on+Protecting+Consumers+From+Economic+Fraud.aspx”
It’s good they are at opposite ends of the table, because there were a couple of times where they were about to get physical!
July 24th, 2009 at 3:54 pm
By the way, Amway is actually mentioned at the 1 hour, 14 minute point.
August 6th, 2009 at 12:04 pm
Who is the irritating guy named IBOfightback who is defending Amway on every single blog?
August 6th, 2009 at 4:39 pm
IBOfightback is passionate about Amway. His blog is here: http://www.thetruthaboutamway.com/
August 6th, 2009 at 7:47 pm
Holy moly, it looks like the dude is paid by amway to do internet public relations.
August 12th, 2009 at 3:48 pm
James, ibofb is a very intelligent misguided individual. I have blogged with him for about 4 years and met him in Prague last year. He is VERY dishonest.