FTC - Will they start elbow dropping other methods

[David McAnulty]

By now a good number of IMers know the FTC is putting the hurt on things like testimonials, some a little more personally than others.

Do you think they will start expanding their efforts to all forms of communication.

For example,

Marketing techniques such as "you must buy before tonight or you will lose this opportunity" except the date is updated daily. This is deceptive at best and I am sure they have taken notice.

What are other methods you can see being curtailed by the FTC?

[Alexa Smith]

Originally Posted by David McAnulty

For example,

Marketing techniques such as "you must buy before tonight or you will lose this opportunity" except the date is updated daily.

I hope someone will do something about those. I don't care whether it's the FDA, the FTC (you meant FTC, right?) or just prosecutors and courts.

It's clearly and unambiguously deceptive.

I also think it's completely futile, and I strongly suspect that, overall, it loses far more sales through damaged credibility/plausibility than it can ever gain. I think it's only really used by people who are writing their own "copy" and haven't actually grasped the concept of "creating urgency" too clearly?!

It's the kind of "technique" that understandably gives internet marketing a bad name, and in that sense is a collective disservice to all of us.

[jpwarrior]

Hi,

My belief personally is that the FDA will have absolutely
NOTHING to say about testimonials, yep, you heard me right...

NOTHING....

If they do, tell 'em to hit the road....

....at least until testimonials become edible or available
only by perscription.

Seriously though, I'm pretty sure you meant the FTC (Federal Trade
Commission) and not the FDA (Food and Drug Administration).


Jason

[Razer Rage]

Sadly, we're seeing that sort of thing right here in the warrior forum at the WSO section.

If there is one thing you can do to destroy your credibility before even making the sale, it's to make false scarcity claims.

Originally Posted by Alexa Smith

I hope someone will do something about those. I don't care whether it's the FDA, the FTC or just prosecutors and courts.

It's clearly and unambiguously deceptive.

I also think it's completely futile, and I strongly suspect that, overall, it loses far more sales through damaged credibility/plausibility than it can ever gain. I think it's only really used by people who are writing their own "copy" and haven't actually grasped the concept of "creating urgency" too clearly?!

It's the kind of "technique" that understandably gives internet marketing a bad name, and in that sense is a collective disservice to all of us.

[Dan C. Rinnert]

Originally Posted by David McAnulty

Marketing techniques such as "you must buy before tonight or you will lose this opportunity" except the date is updated daily. This is deceptive at best and I am sure they have taken notice.

That's already prohibited in some states. Many states have laws and regulations that cover sales and sales pricing. I'm surprised more cash-strapped states haven't already been trolling the Internet.

Maybe they are...

[jpwarrior]

On a more serious note, It does seem that they are sincerely trying
to clamp down on unethical marketing tactics which is a good thing overall.

But, in my opinion, I am always weary of any new government rules
and regulations as it always seems they are designed to expand
their own power at others expense.

Sometime small steps do lead to larger steps and expansion into other
areas. We'll have to wait and see.

As a jaded marketer, I'm pretty immune to the scarcity and urgency
tactics and I think a lot of regular folks are too by now. It's just so
common and over used.

On the radio last night I heard a report about banner ads back when
they were first introduced had a 78% click rate, now they are invisible
to most.

I would imagine the same goes for those dancing time clocks trying to urge
me to buy. I don't really have a problem with those.

Phony testimonials are a real problem and are very unethical, because it
gives a false impression of the products' capability which is supposed
to be solving a problem for the buyer.

Personally, I take all testimonials with a block of salt, especially the ones
with last name initials only (Pam S., John P. etc) or fully spelled last names which are all common like Jones, Smith , James, Johnson etc.

But I'm sure there are still a lot of consumers taken in by this because they want to believe in the product and or the hype.

Hype is a bigger problem I think, but hype sells unfortunately.

Jason

[darrin_cooper]

One of the major problems we as business owners have is not understanding or acknowledging accurate information.

Misinformation is one of the biggest problems in Internet Marketing & the media as a whole.

David, the FDA has nothing to do with testimonials or the concern you are having. You wrote FDA 3 times. To people not knowing or understanding may provide comment or opinions based on your information speaking that parts of your statements are true, but clearly has nothing to do with anything.

It's the FTC -- The Federal Trade Commission which has set legislation & regulations forward that will enforce rules not only on Internet Marketers but also on Old Media (ie: advertising commercials). This will go into effect in December.

Overall, the goal is to cut down deceptive tactics, specifically with the focus on a product marketing "results based" and "result specific" actions.
An example could be a Testimonial - whether or not that testimonial was a paid testimonial, or a results based testimonial. Another example is how a product states a specific result that can't be verified, tracked or duplicated easily, whereas the words "All results not typical" will become an obsolete & illegal term in the future.

In regards to your statement about: "Buy Before Tonight" -- would be a completely fine statement if real measures were put in place to verify, prove and be accurate about if a product has a limited amount, or limited time only, etc. That is on the product/service owners own self to state this fact. But it's also up to the potential buyers to verify this and expose if it's not true. This would be due diligence.

And due diligence is what the FTC mandates is basically all about. If people complain enough, the FTC will step in. So, I definitely look forward to a big shake up to a lot of marketers. And if you look closely enough, that shake up is already happening.....just read all the emails about various people "quitting" internet marketing.....changing up their business models, doing things differently. ..........

Originally Posted by David McAnulty

By now a good number of IMers know the FDA is putting the hurt on things like testimonials, some a little more personally than others.

Do you think they will start expanding their efforts to all forms of communication.

For example,

Marketing techniques such as "you must buy before tonight or you will lose this opportunity" except the date is updated daily. This is deceptive at best and I am sure they have taken notice.

What are other methods you can see being curtailed by the FDA?

[Alexa Smith]

Originally Posted by Razer Rage

Sadly, we're seeing that sort of thing right here in the warrior forum at the WSO section.

Yes, that's undeniably sad. But on brighter note, there may be a kind of "Darwinian principle" operating in this regard, in the sense that people trying it (or at least some of them) will gradually learn that it's costing them much more than it benefits them.

Originally Posted by Razer Rage

If there is one thing you can do to destroy your credibility before even making the sale, it's to make false scarcity claims.

Indeed - but although there's undoubtedly some "throughput" of this kind of phenomenon, I suspect that most of the people who form their erroneous impressions of "scarcity" and "urgency" along these lines, without ever acquiring any real understanding of credibility or ethics are among the many would-be internet marketers who aren't still here a year later - they've failed and dropped out, by that stage.