News
The User-Generated Content Fail
- 30th August
- Elisabeth Lambert 81
The importance of implementing user-generated content (UGC) as a way to increase conversions and boost sales is a topic often talked about (watch Brant Barton of Bazaar Voice share his views on the topic as one example). However, if you think that by personally posting the odd online review about your company’s product – or [...]
The importance of implementing user-generated content (UGC) as a way to increase conversions and boost sales is a topic often talked about (watch Brant Barton of Bazaar Voice share his views on the topic as one example).
However, if you think that by personally posting the odd online review about your company’s product – or by asking staff to – is a good way to get the UGC ball rolling, think again. Unless you have divulged your link to the company, it’s against the law.
A California-based firm that offers marketing and public relations services to video game makers, has agreed to settle charges that it had staff pose as unbiased video game buyers and post reviews on iTunes, reports The Australian.
Between November 2008 and May 2009, Reverb staff posted reviews about clients’ games in a manner that, according to the Federal Trade Commission (FTC), gave the impression the comments “were written by disinterested customers.” Reverb failed to disclose that it was hired to promote the games and often received a percentage of sales.
The FTC says that the firm and its owner, Tracie Snitker, must remove the potentially deceptive reviews and refrain from practice. Companies involved in online marketing still need to follow the “long-held principles of truth in advertising.”
The FTC has also stated that anyone posting online endorsements or testimonials must disclose if they:
- have any connections to the sellers, or
- are being compensated in anyway for the reviews.
Yes UGC is king and the benefits of the transparency it can provide are tremendous – as long as it was achieved in an open and honest way to begin with.
