According to the Guardian newspaper, the government’s consumer watchdog is clamping down on non-declared endorsements by celebrities on social networking websites.
The Office of Fair Trading (OFT) has said that online advertising and marketing that does not disclose when promotions, are “deceptive” under fair trading rules.
Celebrities have been endorsing brands in their posts on Twitter. U.S. rapper Snoop Dogg reportedly earned $3,000 (£1,900) for endorsing a product in a tweet. The United States Federal commission claims that all product endorsement posts must contain the words “spon” or “ad”, to show that the writer has been paid for the reference.
The crackdown by the OFT has come after a UK based specialist PR and marketing company was warned about how it advertised on Twitter.
Handpicked Media has since made a statement to OFT, saying that it will not “engage in promotional activity unless bloggers within its network prominently disclose that the promotion has been paid for.”
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