Press Releases - 2009
BzzAgent Eager for Unfair Commercial Practices Directive to Take Effect
Regulations to Clear Path for Honest, Ethical Word-of-Mouth to Thrive
(London, England and Boston, USA) April 15, 2008 – International word-of-mouth media network BzzAgent, Inc., today lauded the Office of Fair Trading (OFT) for helping implement into law the European Unfair Commercial Practices Directive (UCPD), a provision of the Consumer Protection from Unfair Trading Regulations designed, in part, to protect consumers from deceptive marketing practices.
According to BzzAgent Founder and CEO Dave Balter, “What’s good for consumers is ultimately good for business, and the OFT is working to make sure businesses – particularly marketers – act as proper custodians of consumer trust.”
The company’s praise centers on Item 14 of the UCPD which prohibits companies from “falsely claiming or creating the impression that an advertiser (including an individual sales person) is not acting for purposes relating to his/her trade, business, craft or profession, or falsely representing oneself as a consumer.” Advertising industry observers have concluded that this regulation will curb, if not eliminate, stealth marketing campaigns that deceive consumers through the use of hired professionals who purport themselves as everyday consumers.
According to Marina Palomba, Legal Director for the Institute of Practitioners in Advertising, “The IPA believes that maintaining the integrity of all types of commercial communication is vital to ensure consumer confidence and continued brand value and trust. Responsible advertisers and their agencies having nothing to fear by the new consumer protection regulations, which will crack down on unscrupulous advertisers whose desire is to mislead, not those with transparent and honest practices.”
“This provision unambiguously bans misleading, duplicitous or otherwise deceitful marketing practices.It does not prohibit ethical ‘word of mouth’ marketing techniques that empower consumer volunteers to share their unbiased opinions, especially if those individuals explicitly disclose their involvement with a marketing program,” added BzzAgent Vice President of Marketing, John Bigay.
BzzAgent believes that when the new UK Regulations take effect on 26th May 2008, they will serve as a powerful deterrent to companies specializing in deceptive practices – techniques that, according to BzzAgent, have caused confusion in the UK market regarding how to structure ethical and effective word of mouth programs. “Even the term ‘shill marketing’ is a misnomer,” said Dave Balter, “because those seedy practices aren’t marketing at all. They are confidence tricks. They are cons.”
Since its launch in 2002, BzzAgent has built a network of 400,000 unpaid American, Canadian and British volunteers who have triggered upwards of 90 million unscripted communications. BzzAgent was the first to obligate its participants to be transparent about their involvement in word of mouth campaigns, and it is arguably the only company to enforce its disclosure policy. Additional policies, which require volunteers to share their honest opinion about a marketed product, adhere to the code of conduct published by the Word of Mouth Marketing Association and endorsed by its UK affiliate, WOMUK. BzzAgent expanded to the UK one year ago, and in that time it has engaged tens of thousands of UK residents in word of mouth programs for major brands in the personal care, food and beverage and over-the-counter pharmaceutical markets.
BzzAgent, Inc. is an international word-of-mouth media network that helps companies to organize and manage honest, real-world conversations among everyday consumers. BzzAgent’s innovative process, platform and programs enable the acceleration and measurement of word of mouth as a marketing medium. BzzAgent’s clients generate awareness and shape perception about their products and services via the company’s growing community of 400,000 trained consumer volunteers. Since 2002, BzzAgent participants spread honest word of mouth to nearly 90 million consumers. For more information on the company visit www.bzzagent.com or www.bzzagent.co.uk.
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