From the 26th May 2008, the Consumer Protection from Unfair Trading Regulations will come into force, placing restrictions on commercial communications via the internet, social networking and word of mouth communications.
Aimed at “unscrupulous” marketing tactics such as hidden costs in “free” offers, falsely advertised closing-down sales and using editorial comment without revealing it, the new regulations adopt an EU directive requiring all businesses to treat consumers fairly.
The regulations, which effectively spell the end of buzz marketing as we currently know it, will have significant effects on advertising practices and strategies. For example, one particular clause will make the following activities a criminal offence:
* 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 include fines of up to £5,000 or two years in jail for “neglectful, consenting or conniving” company officers.
The regulations will potentially have a dramatic impact on advertising practices for clients and agencies alike, placing as they do restrictions on commercial communication via the internet, social networking and word of mouth communications.
TBG London’s professional body, the IPA (Institute of Practitioners in Advertising) have issued us with a more detailed breakdown of these regulations.
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