Social Media Ethics

I must admit that after watching Sernovitz's presentation, I have mixed feelings about the FCC regulating how companies use social media. I do agree that the ethical applications of honesty and transparency are vital in maintaining the trust of a company's customers. The guidelines for word of mouth marketing that we have discussed in class serve as a great basis for any company venturing into WOM as a tool for promoting their product.

However, I do feel that the FCC overreaches its territory when it targets the people that drive social media and make it exciting. The idea that a company must disclose that it pays certain individuals to talk about its products makes sense in theory, but seems costly and cumbersome in practice. Celebrities are paid millions of dollars as endorsers of various products ranging from Nike sportswear to predatory lending companies. Bloggers and reviewers have emerged as a less costly alternative for companies who want to get word about their product out, but don't want to pay millions for an ad campaign. Though I feel it is important for companies and/or bloggers to honestly disclose that their getting paid for their reviews, I feel the FCC is crossing a line where opinion doesn't necessarily denote fact.

The beauty of social media is letting regular people express their excitement or disenchantment with a product. I do understand when cash or in-kind compensation gets in the picture, the magic of social media wanes. But regulations that seek to stifle WOMM only make social media a less viable option. As a marketing intern for two organizations, I have found that our most creative ideas come from off the cuff experiments that are unconventional and different from other business practices because they are based on live training instead of established rules. Though I do understand Sernovitz's stance on the importance of establishing a basic ethical standard when dealing with the gray areas of social media, I feel that government regulations wouldn't do much in helping with innovative ideas in the social media world.