On March 12, 2013, the Federal Trade Commission (FTC) released a report to address issues presented for disclosures in social, mobile and other digital channels. The .Com Disclosures report provides updated guidance—the previous report was issued in 2000—and adds further clarification to the FTC’s 2009 Guide to Endorsements and Testimonials. Like the original, the updated report emphasizes that consumer protection laws apply equally to marketers across all mediums, whether delivered on a desktop computer, a mobile device or more traditional media such as television, radio or print. Technological restrictions on space, the design of certain social media tools or the size of a given advertisement in a small screen or window do not exempt advertisers from making required disclosures and notices on the platforms mentioned above. The updated report does more than just discuss the evolution of disclosure requirements in response to new technologies; it also provides practical guidance regarding: placement, proximity and prominence of required disclosures; the insufficiency of many hashtags and generic links; the need to take into account technical limitations of both the devices and platforms where consumers may be accessing your content; the use of new technologies to make disclosures; and the use of hyperlinks, including both when they are not – and when they are – a good idea. Our white paper looks to the .Com Disclosures report and at the application of the revised guidance to your marketing initiatives and the requirements of disclosure in social networks (Twitter, Facebook, LinkedIn, Instagram), on devices (mobile & tablets) as well as on traditional web pages (taking into account the dramatic increase in mobile browsing). For complete information on the FTC’s .Com Disclosures report—and to learn the six things that you need to know about disclosure in social, mobile and web—please sign up for our whitepaper at www.cmp.ly/dcdreport.

1. EXECUTIVE SUMMARY
Note: for complete white paper please visit www.cmp.ly/dcdreport
How the Updated FTC .Com Disclosures Affect
Social, Mobile & Digital Advertising

2.
About CMP.LY
CMP.LY offers the only purpose-built social media disclosure solution. For more than
three years, CMP.LY has worked with leading brands and agencies to address
disclosure challenges and demonstrate best practices. For more information about
CMP.LY solutions, and to stay abreast of industry updates, please visit www.cmp.ly.
Legal Disclaimer
This document is not intended to provide legal advice and you should seek the advice of
counsel to discuss specific application of disclosure solutions to your unique
circumstances.
How the Updated FTC .Com Disclosures Affect Social, Mobile and
Digital Advertising
On March 12, 2013, the FTC released a report to address issues presented for
disclosures in social, mobile and other digital channels. The .Com Disclosures report
provides updated guidance—the previous report was issued in 2000—and adds further
clarification to the FTC’s 2009 Guide to Endorsements and Testimonials.
Like the original, the updated report emphasizes that consumer protection laws apply
equally to marketers across all mediums, whether delivered on a desktop computer, a
mobile device or more traditional media such as television, radio or print. Technological
restrictions on space, the design of certain social media tools or the size of a given
advertisement in a small screen or window do not exempt advertisers from making
required disclosures and notices on the platforms such as Twitter, Facebook, Pinterest,
etc., or on mobile phones, smartphones, tablets and other communications devices.
Best Practices for Disclosure
There are a few key considerations that we at CMP.LY feel are fundamental to
developing and establishing best practices, including:
• Ensuring the delivery of notice and/or disclosures, as well as a good user experience
• Providing consumers with access to all relevant information
• Ensuring programs can be reasonably monitored for both the inclusion and omission of
disclosures
• Streamlining and standardization of disclosure methods
• Using clear, attention-getting labels and plain language
• Educating the marketplace with regard to the importance and meaning of disclosures
Note: for complete white paper please visit www.cmp.ly/dcdreport
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3.
The Top Things You Need to Know about Disclosure
1. Disclosure Standard
The FTC has drawn a hard line and it’s time for companies to get serious about
disclosures. The overall rules are largely unchanged, but now they’ve been put in
context for the modern marketing landscape, including social and mobile.
2. Say What You Mean
Marketers can no longer rely on hacks and ad-hoc solutions—such as generic links and
vague hashtags like #SPON—to make disclosures. Disclosures need to be written in
clear, plain language that consumers can easily understand and placed as close as
possible to the claim.
3. Space Constraints
If a disclosure is required for a space-constrained ad—such as a tweet or status
update—it should be made each time the ad is posted. Don’t assume that consumers
will see your posts in sequential order. If the disclosure doesn’t fit, the FTC says the ad
should be changed to include the disclosure or the platform should not be used.
4. Hyperlinks – Dos and Don’ts
Disclosures should not be buried behind a hyperlink when they can be written out in
context. In situations where a hyperlink is unavoidable (such as space-constrained
formats like Facebook and Twitter), it should be labeled as clearly as possible and used
in such a way as to maximize the chance that the consumer will actually click through to
the full disclosure information.
5. Design Factors
Disclosures must be responsive and account for device limitations such as screen size
and technology constraints such as the fact that mouseovers, pop-ups and PDFs that
may not function as intended in all display environments.
6. Other Considerations
Disclosures must be accessible from any device or platform (across all mediums) that a
consumer may use to view a marketer’s ad. Don’t forget that there are also other use
cases (e.g. contests and promotions), requirements (e.g. reasonable monitoring) and
challenges (e.g. cross-platform syndication) that must be taken into consideration when
disclosing important legal information via digital platforms.
Note: for complete white paper please visit www.cmp.ly/dcdreport
CMP.LY DCD Executive Summary – March 18, 2013 Revision 1 3

4.
What Has Changed?
In many ways, nothing has changed regarding the requirements for disclosure.
However, the FTC has offered up much clearer guidance as to how these requirements
apply to the inclusion of disclosures in digital marketing channels, giving particular
consideration to social and mobile channels that have emerged since the original report.
As before, required disclosures must be “clear and conspicuous” and the report goes as
far as saying that “if a particular platform does not provide an opportunity to make clear
and conspicuous disclosures, then that platform should not be used to disseminate
advertisements that require disclosures.”
Disclosures must also be unavoidable, in close proximity to the claim that requires
disclosure, give context to the message and function as intended across all formats.
Furthermore, when hyperlinks are the most effective way to deliver disclosure
information (such as in space-constrained environments), they should be “obvious” and
explicitly labeled in language that clearly conveys information about the content on the
linked page.
What Does this Mean for Marketers?
Marketers selling and promoting goods online should review current practices to ensure
that the placement and prominence of required disclosures are sufficient. The FTC also
now requires that marketers take into account mobile-specific factors, such as
responsive website design, screen resolution and device limitations.
For marketers promoting or marketing in social and mobile channels, the changes are
more pronounced. Some ad-hoc disclosure methods were specifically called into
question—in particular the use of #SPON, generic link shorteners and including
disclosure information in preceding or subsequent messages. Clear and prominent
disclosures that provide unavoidable context must be used in the body of the message
moving forward.
Marketers need to review and update their social media policies to reflect these
guidelines. Note that brands and agencies should have a conversation to ensure that
policies and practices are aligned—doing so can avoid further inquiry and costly
investigation by regulators.
Don’t forget that under the FTC’s Guide for Testimonials and Endorsements reasonable
monitoring of disclosures is also required. This requirement goes beyond mere social
listening and includes monitoring known third parties for the omission of required
disclosures as well as the inclusion of false, misleading or unsubstantiated claims.
Marketers should not avoid programs simply because of compliance requirements;
process and automation solutions do not need to be onerous or restrictive. With some
foresight and planning, programs can be structured, managed and even measured
more effectively as a result of applying best practices.
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5.
How CMP.LY Addresses these Challenges
CMP.LY is the one commercial solution purpose-built to help marketers and businesses
address disclosures and compliance challenges in social media networks such as
Twitter and Facebook. Our patent-pending technology helps businesses and individuals
alike meet their legal obligations while increasing openness and transparency on the
social web.
We created the CMP.LY Standard Disclosure Framework to provide marketers and
legal stakeholders a simple, documented, and effective way to address required
disclosures and applicable monitoring requirements across all social and digital
channels, and at scale. Designed with both consumer and business needs in mind, our
solutions address the need to communicate with consumers in plain English and in
space-constrained environments while still delivering the often lengthy and nuanced
disclosure content required of businesses. The CMP.LY approach utilizes a
standardized system of layered notices to provide the most effective method of
delivering disclosures and important information to consumers in social and digital
channels.
You can use any of our disclosure URLs to link directly to a detailed disclosure page
providing the full legal language or, instead, to a page of content (such as an article or a
video), which will then be framed with a summary of your disclosure—from which the
reader can then view the full disclosure page. With tweet-friendly character counts, our
Plain Language disclosures provide notice of disclosures, disclaimers, warnings and
other fine print in simple, recognizable words. These URLs provide clear notice to the
reader that they link to important legal information, without distracting from the message
content or taking up too many characters.
Key Aspects and Benefits of Using CMP.LY’S Disclosure Solutions
• Simple Disclosure Standard: The value of consistency to the consumer is
underscored in the .Com Disclosures report. Broad use of the CMP.LY disclosure
framework can contribute greatly to the collective consumer experience.
• Structured Disclosure Method: Our solution ensures businesses can
implement consistent disclosure policies and methods across their organizations,
communications, campaigns and channels.
• Clear and Conspicuous: With CMP.LY you can use plain and understandable
language to communicate disclosure information.
• Robust and Flexible Framework: We make it easy to address a broad range of
disclosure and compliance needs. With CMP.LY’s solutions, businesses can
chose from a broad range of notice and display options that can be used to
present disclosures clearly within the text of a message, in proximity to a claim
and even at the top of a webpage.
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6.
• Universal Accessibility: Our disclosure framework is optimized for use across
platforms as well as mobile screens and operating environments, ensuring your
disclosures are not compromised by technology add-ons or other limitations.
• The Power of Layered Notices: CMP.LY was designed to address disclosure
needs in space-constrained environments. Our framework provides the ability to
combine multiple disclosures, lengthy disclosures, additional context and
supporting information, without detracting from the consumer experience.
o Make clear, in-message disclosures and notices using our plain language
disclosure URLs with immediate access to additional information.
o Present additional disclosure content and context that is easily accessible
by consumers across any platform or device.
• Unavoidable Presentation: Implement CMP.LY technology to provide
consumers with important disclosures in unavoidable frames and interstitial
pages when promoting content in social channels.
• Documented Process: Using CMP.LY ensures that you have a complete audit
trail to show compliance and demonstrate best practices.
• Centralized Recordkeeping: CMP.LY provides you with a consolidated
repository of your social and digital disclosure and compliance documentation
across all programs and platforms.
• Automated Compliance Monitoring: When disclosure monitoring is required—
as with FTC testimonial and endorsement guidelines—simply incorporate our
automated monitoring for the inclusion and omission of disclosure information
through advertiser owned channels as well as third-party advocate channels.
• Valuable Disclosure Measurement: Using CMP.LY disclosures not only helps
in addressing your compliance needs, it also provides you with a way to measure
click-through data and other consumer engagement with your disclosures.
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7.
How Do the Updated .Com Disclosure Guides Impact CMP.LY?
Enabling transparency with consumers is at the heart of what we do. We are constantly
incorporating feedback from consumers, marketers and regulators to improve the
effectiveness of our solutions.
In response to the updated guidelines we are expanding the CMP.LY Disclosure
Standard to include more plain language disclosure options to provide a wide selection
of disclosure URLs that address a broad range of needs and preferences.
Additionally, we will be revising our disclosure badges to incorporate more text and
disclosure content in conjunction with the disclosure icon itself to ensure the standards
outlined in the guidelines can be met when this disclosure method is used.
Where Can I Learn More?
The FTC provides businesses with resources, insights and access to closed
investigations and actions at www.ftc.gov.
The Word of Mouth Marketing Association (WOMMA) has been on the forefront of the
issues of disclosure, transparency and ethics in WOM marketing since 2004. There are
a number of resources available at www.womma.org/ethics and a recently updated
Social Media Disclosure Guide can be found at www.womma.org/disclosure. Please
note that the WOMMA Members Ethics Advisory Panel (disclosure: Tom Chernaik, CEO
of CMP.LY, is the Co-Chair of the WOMMA MEAP) will be updating the Social Media
Disclosure Guide in the coming weeks to account for this revised guidance. In addition,
WOMMA offers a daily SmartBrief, available at
http://www.smartbrief.com/news/WOMMA/index.jsp.
CMP.LY offers the only comprehensive and purpose-built social media disclosure
solution. For more than three years, CMP.LY has worked with leading brands and
agencies to address disclosure challenges and demonstrate best practices. For more
information about CMP.LY solutions, and to stay abreast of industry updates, please
visit www.cmp.ly.
For the complete white paper and additional analysis of the .Com Disclosures report,
please visit www.cmp.ly/dcdreport or sign up for our email newsletter.
CMP.LY DCD Executive Summary – March 18, 2013 Revision 1 7