Fair Warning: Readers of these pages will recall actions the Federal Trade Commission (FTC) has taken against brands such as Lord & Taylor (PRN, March 21, 2016) when influencers endorsing their products on social failed to disclose ties to the FTC’s satisfaction (PRNP, May 23, 2016). The other shoe dropped April 20 as the FTC said it sent 90 letters “reminding” brands and influencers that “influencers should clearly and conspicuously disclose their relationships to brands when promoting or endorsing products through social media.” Attorney Allison Fitzpatrick of Davis & Gilbert LLP says the letters are notable because they “mark the first time that the FTC has reached out directly to social media influencers.” She adds, the letters “could usher in a period of even more FTC enforcement of influencer campaigns, including enforcement actions directly against influencers.” Fair warning.
Spin Cycle: Bill O’Reilly fondly called his Fox News Channel show a “no-spin zone.” On the face of it, the statement his employer 21st Century Fox released to announce O'Reilly's ouster Apr. 19 spun as much as a great knuckleball, which is to say not at all. At fewer than 30 words it barely said anything and was nearly silent on the alleged misconduct that forced out FNC’s top-rated talent and moneymaker. Even Fox leader Rupert Murdoch’s letter to employees was loudly silent on harassment. Instead Murdoch emphasized finances, barely mentioning Fox’s culture that, he wrote, is based on “trust and respect.” Both Murdoch’s letter and Fox’s statement spun by omission. Most communicators saw both as missed opportunities to address larger issues and reputation. If Wells Fargo, Theranos, Volkswagen and United teach us anything, it’s that eventually the truth will out. Should women at Fox or former employees continue talking, O’Reilly and Roger Ailes may become the tip of the iceberg. What will the company say then?
News Bits: The Wakeman Agency obtained a license from the federal government to open an office in Cuba. Plans are to open in Havana, it says, making it the first, U.S.-based, women-owned agency to operate in Cuba. – 451 Marketing renamed itself Agency 451, reflecting the company’s evolution and future vision. Ownership and staff remain the same. – Greenough Brand Storytellers launched a brand journalism research offering that includes concepting, research design, execution, analysis and recommendations for converting insights into brand journalism strategies across earned and paid media channels. – Beekeeper Group of D.C. acquired PR and marketing firm Pivot Point Communications of Alexandria, VA. Pivot Point cofounders Vanessa French and Casey Kincheloe will join Beekeeper. – Flackable (love that name) moved its office to Philadelphia from Wyomissing, PA. – MSLGROUP is partnering with ColorComm, the group for women of color in communications, on a fellows program. MSLGROUP will offer formal training, access to senior leaders, mentoring and opportunities to interview at its offices, ColorComm says. The plan is to grow the program across the country, it adds.
Who’s Listening?We know cutting through the clutter to reach customers and potential customers is a constant concern of brand communicators. We saw sobering statistics about internal communications this week. Gallup says 74% of employees are disconnected and feel they’re missing company information and news. Nearly 40% of corporate communicators say corporate silos are the greatest challenge to internal communications, a study of 300 global communicators from Dynamic Signal shows. The communicators say email tops the list of effective corporate communications, with company intranets in second place. Email does little for half the world’s workforce, which lacks corporate email addresses. Non-mobile intranets (there are still plenty of companies with those) exclude workers without desks or who are away from their desks a lot. Also significant: With the average worker receiving and sending in excess of 120 business emails daily, it can be a challenge for corporate email and less-than-exciting intranets to, yes, break through the clutter.
People: WE Communications named 15-year agency veteran Kate Richmond its chief talent officer, a newly created executive board position. She’ll report to CEO/founder Melissa Waggener Zorkin. – Crisis firm Dezenhall Resources named Fred Brown senior counselor. Brown was most recently communications director of the Republican Jewish Coalition. – Former National Intelligence Council chairman Gregory Treverton joined APCO’s international advisory council. – Travel specialist J Public Relations promoted CA-based SVP Ali Lundberg to EVP and VP Kristin Moeller of its NY office has been named SVP. – Edelman named Cydney Roach U.S. lead for employee engagement. She most recently consulted at Ernst & Young.