The FTC investigated whether bloggers who had been given gift certificates as an incentive to include links to Hyundai videos in their postings or to comment on them violated Section 5, which requires the disclosure of a material connection between an advertiser and endorser. The FTC closed the investigation on two grounds.
First, the FTC found that Hyundai did not know in advance about the use of the incentives, that a small number of bloggers received the gift certificates, and that some of them did, in fact, disclose the information.
Second, the actions were not taken by Hyundai employees, but by an individual who was working for a media firm hired to conduct the blogging campaign. The actions were actually contrary to Hyundai’s social media policy. The FTC also noted that upon learning of the misconduct, the media firm promptly took action to address it.
Key takeaways: Have an established social media policy, and be sure it is enforced. Upon learning about failures to disclose, take immediate action.