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For now, FTC ignores watchdog group's barking

Healthcare Strategist Trend Watch, December 15, 2006

The Federal Trade Commission (FTC) has refused to look into a marketing practice that the watchdog group Commercial Alert calls "fundamentally fraudulent and misleading." The Portland, OR-based nonprofit asked the FTC to investigate-and possibly regulate-word-of-mouth marketing, a tactic that works especially well in healthcare, because recommendations from friends and family members can be highly influential.

The FTC left the door open for future investigations into word-of-mouth or buzz marketing on a case-by-case basis, according to an Advertising Age article. Cautious marketers, the article noted, would be wise to avoid paying consumers for their opinion without full disclosure.

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