UK Watchdog to Crack Down on Celebrity Tweets - Will the FTC Follow Suit?
The celebrity Twittersphere is marginally interesting to me personally, but celebs seem to carry a fair amount of clout on Twitter and in the online space in general. It seems like celebrities are among the most followed (if not the most followed group on Twitter). They plug many products and services, and I often wonder whether there's any financial motivation behind these efforts. My instinct is that the answer is yes, and there has been some coverage on how much certain celebrities earn per Tweet. See these articles from Business Insider and SF Gate for some eye-popping figures: "How much celebrities and sport stars make per tweet" and "Startups cash in on Twitter with pay-per-Tweet."
The Daily Mail reports that UK's Office of Fair Trading (which seems like the US equivalent of the FTC) has ordered a crackdown on these celebrity tweets. (See "Stop Tweeting - or we will take you to court! Watchdog's crackdown on celebrities who plug products on Twitter" (via Leanne O'Donnell) and "Twitter endorsements face OFT clampdown".) The article asks around for comment on some of the products or services endorsed by these celebrities, and finds some instances of money (or discounts) changing hands - one involved Henry Holland and Range Rover:
Loosely related: "Khloe Kardashian and Twitter Spam."
Also loosely related: "How 50 Cent Made $9M From One Weekend of Tweeting." I'm not suggesting there was anything improper with that 50 Cent did, but encouraging followers to invest through frequent tweeting and plugging (of a stock that you own) sounds like the type of thing that could raise some agency's eyebrows.
The Daily Mail reports that UK's Office of Fair Trading (which seems like the US equivalent of the FTC) has ordered a crackdown on these celebrity tweets. (See "Stop Tweeting - or we will take you to court! Watchdog's crackdown on celebrities who plug products on Twitter" (via Leanne O'Donnell) and "Twitter endorsements face OFT clampdown".) The article asks around for comment on some of the products or services endorsed by these celebrities, and finds some instances of money (or discounts) changing hands - one involved Henry Holland and Range Rover:
Henry Holland (133,035 followers)Range Rover later told a different story, but its initial comment was interesting. Other celebs/products include:
Range Rover
‘CAN’T WAIT FOR MY NEW RANGE ROVER . . .!!!!’ – November 24
‘It’s the dream! Waiting for me in the car park! – December 2
A Range Rover spokesman said their VIP scheme meant celebrities signed contracts ‘in return for them driving our cars.’ She added: ‘It’s not free...Under the terms of the deal they Tweet . . . ‘They Tweet about the car.’
Elizabeth Hurley (66,603 followers)I wonder if the FTC will eventually crack down on this practice in the US. Obviously, under the FTC regulations promulgated last year, this is the type of thing that should come with a disclosure, and an endorsement without disclosure can subject both the celebrity and the company being endorsed to penalties. The sole crackdown to date under those regulations involved fake reviews for a game posted by a PR company. (See "FTC Dings PR Firm for Fake Reviews -- In re Reverb Communications.") I hadn't heard of either the PR company or the product it endorsed, and it seemed like an odd choice for an FTC poster child. It will be interesting to see what the FTC does with celebrity endorsements in 2011.
Estee Lauder
Peaches Geldof (97,919 followers)
The May Fair Hotel
Lily Allen (2,573,958 followers)
PlayStation and Grey Goose vodka
Loosely related: "Khloe Kardashian and Twitter Spam."
Also loosely related: "How 50 Cent Made $9M From One Weekend of Tweeting." I'm not suggesting there was anything improper with that 50 Cent did, but encouraging followers to invest through frequent tweeting and plugging (of a stock that you own) sounds like the type of thing that could raise some agency's eyebrows.
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