Showing posts with label FTC Advertising Regulations in Social Media. Show all posts
Showing posts with label FTC Advertising Regulations in Social Media. Show all posts

Saturday, January 28, 2012

Is FC Bayern Munchen Guilty of Like-Gating?

FC Bayern Munchen recently created a public relations own goal with its social media usage that may have legal consequences. A couple of days ago, Bayern Munchen announced on its website they had agreed to sign a 'spectacular name' and then directed fans to listen to the announcement live on the club's Facebook page. However, in order to listen to the announcement the Facebook user had to first "Like" the page.

There was no announcement of the signing of a "spectacular name". Instead, Bayern Munchen's GM Christian Nerlinger appeared in a video that contained the fans' own Facebook profile photo along with their name on a Bayern Munchen shirt. Many fans were not amused and complained loudly across multiple social media platforms.

If Bayern Munchen was located in the United States the National Advertising Standards Board and/or the Federal Trade Commission may have investigated them for "Like-Gating". Like-Gating occurs when a marketer uses misleading means to inflate the number of Facebook Likes. It appears that Bayern Munchen utilized a misleading advertising message to increase its number of Facebook Likes.

The bottom line is that sports organizations must be very careful when implementing social media marketing campaigns. There are major legal implications with every single social media marketing promotion.

To learn more about these issues you may contact me at http://shearlaw.com.

Copyright 2012 by the Law Office of Bradley S. Shear, LLC. All rights reserved.Link

Thursday, September 15, 2011

The FTC May Soon Crack Down On Social Media Credential Fraud

The FTC may soon crack down on Social Media Credential Fraud because it is a growing problem that will drastically harm monetization opportunities in the social media industry. Social Media Credential Fraud may occur when someone utilizes social media to create a false impression that they are an expert in their profession for commercial gain. Under the FTC's Advertising Regulations, it is crystal clear that engaging in unfair or deceptive acts or practices is unlawful.

This past summer the FTC sought input for revising its guidance to business about disclosures for online advertising. I submitted a comment requesting that the FTC take action against those who are practicing Social Media Credential Fraud.

On April 18, 2011, I stated that non-practicing attorney/self-described social media evangelist Adrian Dayton has a Twitter account that appears to indicate that he has a rock star like Twitter following to follower ratio. In this post, I discussed how Mr. Dayton had previously talked about why he un-followed 47,000 people on Twitter. The reason he gave for un-following almost 50,000 people went something along the lines he no longer could focus on new followers or qualified prospects because they were lost in the noise.

At that time I stated: "Having to follow at least 54,533 people in order to receive only 41,026 followers in return is not very "expert like." Mr. Dayton's Twitter activity demonstrates that he is a social media expert at one thing: following tens of thousands of people on Twitter and un-following tens of thousands of people on Twitter. That is it."

On January 13, 2011, Mr. Dayton was following 4,417 and had 41,049 followers.



On September 13, 2011, Mr. Dayton was following 8,613 but only had 41,203 followers in return.



During an 8 month period, it appears that Mr. Dayton increased the number of people he followed on Twitter from 4,417 to 8,613 (an increase of 4,196). However, during this time frame it appears that Mr. Dayton's number of followers has only gone up from 41,049 to 41,203. This is a net plus of a paltry 154 new followers. Are these the numbers of a bona fide social media strategist or evangelist?

Why would Mr. Dayton want to follow 4,000+ more people when he previously stated that he un-followed thousands of people because [he] was following so many people that [his] Twitter stream was filled with content that was at best irrelevant and at worse distracting? Could part of the answer be that Mr. Dayton is trying to keep at least 41,000 followers?

If you divide 4,196 by 154 it appears that Mr. Dayton may need to follow 27.25 people before 1 person will follow him in return. If you multiply 41,203 by 27.25 that equals 1,122,782. Therefore, it is possible that Mr. Dayton has had to follow 1 million plus people in order to receive only 41,000+ followers in return. Since Mr. Dayton's Twitter popularity is presumably at an all-time high now he may have previously needed to follow 30, 40, or 50 people before 1 person followed him back.

As I stated on April 18, 2011, I challenge Mr. Dayton to dispute my findings. If I was previously wrong Mr. Dayton would have publicly disputed me and/or threatened to sue me in the same manner that it appears he previously threatened lawyer Brian Tannebaum who pointed out some issues with Mr. Dayton's background.

Therefore, I want to reiterate, caveat emptor when hiring "experts". Don't be a sucker. At least perform a Google search to learn more about an "expert's" credentials. Just because someone calls himself/herself an expert and/or has a social media profile that appears "expert like" that does not make it so. As Malcolm Gladwell states, it takes at least 10,000 hours to master a craft.

To learn how to avoid violating the FTC Advertising Regulations you may contact me at www.shearlaw.com.

Copyright 2011 by the Law Office of Bradley S. Shear, LLC. All rights reserved.

Monday, April 18, 2011

Do Marketing Ethics and the FTC Advertising Regulations Matter in the Social Media Age?

P.T. Barnum is credited with the phrase, "There's a sucker born every minute." Social Media provides entrepreneurs so many new opportunities to expand their brand and footprint in many exciting and fun ways. However, social media also provides snake oil salesmen and others whose ethics are questionable the ability to defraud in ways not imagined until a few years ago.

After a recent speaking engagement, a lawyer approached me and said, "I think I have been duped the way Oprah was by James Frey." The lawyer told me he had bought a book on Amazon.com that had an amazing initial editorial review. For the record, the book's official editorial review states, it "is a 'must-read' for all law firms. Indeed, it should be studied avidly, not only by lawyers, but also by any professional service firm that wants to grow its business fast using Web 2.0 techniques. As a successful New York attorney turned social media guru, [name removed] deals with his subject comprehensively and with an easy authority." The author of the social media book that the lawyer bought is self described social media expert Adrian Dayton.

With the above editorial review along with Mr. Dayton's celebrity like Twitter Following to Followers ratio, the lawyer told me he believed that he was buying a book from a real social media expert. The lawyer said that he thought that anyone who had around 50,000 followers but only had to follow several thousand people in return must be an expert in teaching others how to harness the power of Twitter to build their business.

After listening to me discuss Social Media Credential Fraud, the lawyer told me he was angry at himself for blindly believing Mr. Dayton's official biography without doing any further due diligence. He stated that despite following Mr. Dayton's recommendations for the past 9 months, that tweeting will build your book of business, he doesn't have any business development progress to show for his efforts. I told the lawyer that since I have been tweeting from @bradleyshear on June 15, 2009, I have not had a single legal client contact me and say, "I love your Tweets, you're hired!" I have tweeted more than 2,000 times from @bradleyshear.

Attorney Brian Tannebaum's blog posts about Mr. Dayton on November 9, 2009, November 26, 2009, December 3, 2009, June 16, 2010, and February 9, 2011 reveal that Mr. Dayton may be embellishing his credentials and may have a problem with truth in advertising (i.e.Rule 7.1 of New York's Rules of Professional Conduct and the the FTC's Advertising Regulations). Last year, Mr. Dayton un-followed at least 47,000 people on Twitter. As of this writing, Mr. Dayton is following 7,533 people and has 41,026 followers.

If you didn't know that Mr. Dayton has already un-followed at least 47,000 people on Twitter, you may have the impression that he has an organically created rock star like Twitter Following to Followers ratio. However, the numbers don't lie. Mr. Dayton has followed at least 14,000 more people than are following him back. Having to follow at least 54,533 people in order to receive only 41,026 followers in return is not very "expert like." Mr. Dayton's Twitter activity demonstrates that he is a social media expert at one thing: following tens of thousands of people on Twitter and un-following tens of thousands of people on Twitter. That is it.

I challenge Mr. Dayton to dispute Mr. Tannebaum's and my allegations. I take great pride in being a lawyer and like thousands of other lawyers I made many sacrifices to become a lawyer. I find it offensive when a non-practicing attorney such as Mr. Dayton continues to mislead the public without any repercussions. Since first writing and speaking about Mr. Dayton's activity without naming him, I have not had a single lawyer state that Mr. Dayton's conduct is ethical or legal.

In previous blog posts, I initially did not name Mr. Dayton to provide him the opportunity to take corrective action (he started following me again on Twitter recently so I am sure he has read my April 1, 2011 and April 8, 2011 blog posts about Social Media Credential Fraud). Unfortunately, Mr. Dayton has not yet taken corrective action.

Caveat emptor when hiring "experts". Don't be a sucker. At least perform a Google search to learn more about an "expert's" credentials. Just because someone calls himself/herself an expert and has a social media profile that appears "expert like" does not make it so. As Malcolm Gladwell states, it takes at least 10,000 hours to master a craft.

To learn how to avoid violating the FTC Advertising Regulations you may contact me at http://shearlaw.com/attorney_profile.

Copyright 2011 by the Law Office of Bradley S. Shear, LLC. All rights reserved.

Friday, April 8, 2011

Will Your Social Media Expert's Advice Violate the FTC Advertising Regulations Part II

An idea attributed to Adolf Hitler and Joseph Goebbels goes something along the lines, if you tell a lie big enough and keep repeating it, people will eventually believe it. Unfortunately, there are some people who practice this philosophy in the social media marketing world.

Last week, I wrote about a self-described social media marketing expert ("Expert #1) who actively follows tens of thousands of people and then once he receives a follow back he un-follows them in order to increase his followers to following ratio so it looks like he is a rock star or professional athlete. This practice is known as Social Media Credential Fraud.

On January 13, 2011, this "social media expert" was following 4,417 people and had 41,049 followers. On April 1, 2011, this self-described social media marketing expert was following 7,000 people and had 41,009 followers. As of this writing, he is following 7,523 people and has only 41,040 followers. Therefore, in a week he has followed 523 more people and obtained only 31 followers in return. In almost 3 months, he has followed 3,106 more people and lost 9 followers. His Return on Follow (ROF) is not what I would call "expert like". If you extrapolate these findings over a year you may realize the depth of this deception.

There is another excellent example of Social Media Credential Fraud that I would like to share because a friend of mine recently told me I should follow another self described social media expert. As soon as I saw the name of this person I said to myself I think this person has played the "I will Follow You And As Soon As You Follow Me Back I Will Un-follow You" game with me.

I was right. On 2/16/10, another self described social media marketing expert, "Expert #2," had the following stats: 11,290 followers; and following 11,390. Therefore, he had to follow 100 more people than were following him back. On 6/5/2010, "Expert#2's stats were: 12,277 followers; and 12,748 following. He had to follow 471 more people than were following him back. As of this writing, "Expert #2's stats are: 14,424 followers, and 5,243 following. All of a sudden, "Expert #2" found his social media wings.

Expert #2 now has a Twitter account that he feels better reflects his persona so it may enable him to sell social media marketing services. Expert #2 recently advertised to law firms, "Blogging and Social Media Package Only $1,800 Per Month" and "This program has a value of $4,000 per month!" and "P.P.S. We only have room for 10 new clients in this program at this low price." "Expert #2's social media assistant also plays the "I will Follow You And As Soon As You Follow Me Back I Will Un-follow You" game. On 5/27/10, Expert #2's social media assistant's stats were: 9,458 followers, and 9,588 following. As of this writing, the social media assistant's stats are: 10,252 followers, and 5,535 following. What a great turnaround. How did this happen?

Oh, I forgot to tell you that Expert #1 and Expert #2 are good friends. How do I know this? Expert #1 has Tweeted that they are are good friends. Therefore, are they sharing with each other tips on how to perpetrate Social Media Credential Fraud?

To learn how to avoid violating the FTC Advertising Regulations you may contact me at www.shearlaw.com.

Copyright 2011 by the Law Office of Bradley S. Shear, LLC. All rights reserved.

Friday, April 1, 2011

Will Your Social Media Expert's Advice Violate the FTC Advertising Regulations?

Will your social media expert's advice and/or actions violate the Federal Trade Commission's Advertising Regulations? This is a question you may want to answer before you engage a social media guru for your company.

Social Media Credential Fraud is a growing problem. Social Media Credential Fraud may occur when someone utilizes social media to create a false impression that they are an expert in their profession for commercial gain. Under the FTC's Advertising Regulations, it is crystal clear that engaging in unfair or deceptive acts or practices is unlawful.

I believe it is important to discuss this issue again because a self-described "social media expert" started following me again today on Twitter. This "social media expert" followed me last year and then as soon as I followed him back he un-followed me. Of course, I un-followed him back because I only followed him in the first place because he initially followed me. This social media expert's Twitter feed mostly consists of public conversations with a small group of his friends and/or fellow legal marketers, strategic Foursquare check-ins, and re-posts of his old articles and blog posts. Every once in awhile he will post a link to an interesting article written by someone else; unfortunately, he mostly clogs his Twitter feed with useless and self-serving information so I will not be following him back. Since I will not be following him back, he will un-follow me in the near future. I guarantee it.

This "social media expert" is desperate to keep his followers above 41,000. I mean Muammar Gadhafi desperate. His whole persona is based on the impression that he is a social media expert and has a large organic Twitter following. If he did not practice Social Media Credential Fraud he would be following tens of thousands of more people than are following him back. Last year, he wrote a blog post that said something along the lines, "I un-followed almost 50,000" people. In this rationalizing post, he stated that he could no longer focus on new followers so it was time to do a mass un-follow.

Does this "social media expert" think he is Lady Gaga or Britney Spears? Lady Gaga follows 144,000+ people and Britney Spears follows more than 415,000 people on Twitter. Would Lady Gaga or Britney Spears ever un-follow 50,000 people to better focus on their most die hard fans? Absolutely not. Therefore, this self described "social media expert's" explanation why he did a mass un-follow is not believable. The "social media expert" has un-followed at least 50,000 people to hide the fact that he needs to first follow tens of thousands of people before some of those people he initially followed follow him back.

On January 13, 2011, this "social media expert" was following 4,417 people and had 41,049 followers. As of this writing, he is following 7,000 people and has only 41,009 followers. In approximately, 2.5 months this "social media expert" has followed 2,583 more people but has lost 40 followers. This statistic demonstrates that this person is a "social media expert" at one thing: following tens of thousands of people on Twitter and un-following tens of thousands of people on Twitter. That is it.

If your social media expert is personally engaging in activity that may violate the FTC's Advertising Regulations you may want to ask yourself will he advise my company to do anything unlawful or unethical? If a "social media expert" appears to have great "social media credentials" take a look beyond the numbers to determine how they were achieved. Perform your due diligence and fully review all social media activity. If a "social media expert" appears to have celebrity like Twitter "Following to Followers" figures there is a good possibility that Social Media Credential Fraud is involved.

To learn more about social media ethics and to learn how to avoid violating the FTC Advertising Regulations you may contact me at http://shearlaw.com/attorney_profile.

Copyright 2011 by the Law Office of Bradley S. Shear, LLC. All rights reserved.