Social media marketing has clearly become a top contender in receiving and utilizing digital marketing dollars from companies, however the legalities concerning its use have always been vague. Enter CMP.LY, a New York based startup that works with agencies to offer solutions to automate compliance and keep brands on the "right side of regulations". After two social media campaigns were stopped for violating FTC regulations (Ann Taylor blogger program and Legacy Learning Systems), although they weren’t severely punished, CMP.LY insists on the need to incorporate legal strategies in order to avoid such ramifications.
I can’t help but wonder how the FTC will affect small firms or start ups that may not have the funds to work with companies like CMP.LY. Perhaps the laws and regulations will be more transparent and understandable to 'regular' business owners that need to learn the nuances of social media marketing from the start. We will need to learn new practices and legal solutions if our companies plan to work within the system. Perhaps companies like CMP.LY should develop software or teaching tools to sell to the mainstream market so smaller firms can take advantage of their services.
I believe this is only the beginning of the crackdown on social media marketing and we need to take action to protect ourselves.
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