Media Search:



On Notice: FTC Issues Warning to Hundreds of Companies Regarding the Use of Fake Reviews and Other Misleading Endorsements in Online Marketing…

Prompted by the proliferation of social media advertising that often blurs the line between authentic content and sponsored posts, the Federal Trade Commission last week sent more than 700 companies a Notice of Penalty Offenses warning them against the use of deceptive endorsements in their online advertising. The Notice advises recipient companies that engaging in advertising conduct the FTC has previously determined to be unfair, unlawful or deceptive under Section 5 of the FTC Act can subject them to civil liability of up to $43,792 per violation. As we had previously predicted, these letters may reflect a shift in the FTCs focus towards reliance on 5 of the FTC Act, following last terms Supreme Court opinion in AMG Capital Mgmt. v. FTC which curtailed the FTCs ability to seek monetary relief under 13(b) of the Act.

Companies receiving the Notice include large household names including leading retailers and major advertising agencies. Recipients were also directed to distribute copies of the Notice to each of their subsidiaries engaged in the sale or marketing of products or services to consumers in the United States. While the FTC makes clear that recipients of the Notice are not alleged to have engaged in any wrongdoing, the scope of the Notices sent outand the Commissions 50 vote to authorize the Notice and its distributiondemonstrates that the FTC is highly focused on the use of deceptive endorsements in online advertisements and is willing to aggressively pursue advertisers that flout its directives.

The Notice sent to companies provides a non-exhaustive list of practices the FTC has found to be unlawful in previous FTC administrative orders, including:

Copies of the case decisions discussed in the notice are available on the FTCs website. The Notice also points advertisers to additional resources, including a staff business guidance document The FTCs Endorsement Guides: What People Are Asking and the FTCs Guides Concerning the Use of Endorsements and Testimonials in Advertising, 16 C.F.R. Part 255, for further guidance on their responsibilities under the FTC Act.

While navigating the evolving regulatory landscape regarding deceptive online advertising can present challenges for companies and their advertising partners, avoiding the practices outlined above will likely go a long way in mitigating the risk of facing an FTC enforcement action and subsequent liability. Our team continues to monitor these changes and will apprise our readers of any FTC enforcement actions that arise as a result of the Notices issued today. Watch this space for further developments.

[View source.]

Continued here:
On Notice: FTC Issues Warning to Hundreds of Companies Regarding the Use of Fake Reviews and Other Misleading Endorsements in Online Marketing...

FTC Sends Out Official Warnings to Over 700 Brands Over the Use of Fake Reviews – Social Media Today

As eCommerce continues to rise, so too do deceptive methods of advertising, including fake reviews, undeclared paid endorsements and other practices that fall foul of federal laws.

And now, the FTC is looking to step up its action on this front, with the Commission this week sending out notices to over 700 businesses, including Facebook, Amazon, and LinkedIn, about their use, or facilitation of false reviews and ads to promote products online.

As explained by the FTC:

The rise of social media has blurred the line between authentic content and advertising, leading to an explosion in deceptive endorsements across the marketplace. Fake online reviews and other deceptive endorsements often tout products throughout the online world. Consequently, the FTC is now using its Penalty Offense Authority to remind advertisers of the law and deter them from breaking it.

The FTC says that by sending its Notice of Penalty Offenses to these organizations, its effectively notifying each of their need to either address these issues, or risk penalties of up to $43,792 per violation.

The Notice of Penalty Offenses allows the agency to seek civil penalties against a company that engages in conduct that it knows has been found unlawful in a previous FTC administrative order, other than a consent order.

So now that the FTC has sent out these warnings, it has a legal basis to implement penalties in future instances, if so detected.

What the specifics are in each case is unclear, but the FTC does explain that the range of violations highlighted in its notifications include:

These violations cover a broad range of practices, which are particularly applicable in social media marketing, and with the use influencers in promotions also on the rise, its worth familiarizing yourself with the latest regulations to ensure that you dont also fall foul of the FTCs rules.

The FTC has also created an overview guide to its endorsement rules to provide more assistance in this respect.

Itll be interesting to see whether this new push from the FTC actually leads to more specific legal action on this front, and what that will mean for the marketing sector. And again, with the use of influencer marketing on the rise, you can imagine that many will fail to meet the specific criteria, leading to further concerns.

As such, it is worth reading up on the latest rules.

The FTC has published a full listing of the 700 companies that its sent out notices to here.

Originally posted here:
FTC Sends Out Official Warnings to Over 700 Brands Over the Use of Fake Reviews - Social Media Today

This Company Has Nearly Doubled Since Its March IPO. Is It a Buy? – Motley Fool

Shares of SEMrush Holdings (NYSE:SEMR) -- the online visibility management tool -- jumped 150% from its March IPO by September, before falling back to 100% appreciation today. Other than IPO hype, there has not been any reason for this jump.

The irrationality of this share-price appreciation has left some investors wondering if this software-as-a-service company still has growth ahead of it. Even though it has a market capitalization of just $3 billion, the valuation of 20 times sales worries investors, but its leading solution could provide plenty of growth for the business in the future.

Image source: Getty Images.

SEMrush's goal is to improve the visibility of its customers online. As people spend more time on their phones and on the internet, they can be overwhelmed with the amount of information and advertising they receive, which can lead to some people blocking this information out. This can lead to difficulties for companies looking to break through the noise and abundance of information online to be visible to their target market.

SEMrush provides an all-in-one solution for companies to find key insights that allow them to advertise their products efficiently. Its comprehensive solution allows for its customers to advertise on social media, but also employs search engine optimization (SEO) to take a long-term approach to their advertising strategies. While SEMrush's competitors like Moz and Similarweb (NYSE:SMWB) focus on one part of a company's advertising strategy, SEMrush offers a broad range of options to its customers.

SEMrush offers an unbiased view of its immense data assets -- which include over 20 million domains, 20 billion keywords, and analysis on 1 billion events each day. Unlike Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL) or Facebook (NYSE:FB), which are incentivized to promote their own advertising channels, SEMrush provides an unbiased, customized view on the best advertising options for its customers.

Thanks to this comprehensive analysis solution, combined with its vast data sets and unbiased view, the company has become a market leader in numerous marketing technology categories from search advertising to social media management. This leadership has allowed the company to attract many impressive customers including Walt Disney (NYSE:DIS), Salesforce (NYSE:CRM), and eBay (NASDAQ:EBAY). These customers have also expressed how valuable SEMrush is to their advertising strategies: In Q2 2021, SEMrsuh's net revenue retention was 121%, and its average revenue per user increased 19% from the year-ago quarter.

SEMrush's 76,000 customers in over 142 countries have helped the company reach impressive financial performance. Even as a top dog in the industry, the company saw 58% year-over-year revenue growth in Q2 2021, to $45 million. The company has been building on its 50 offering by launching a Keyword Difficulty solution that enables its customers to optimize their SEO marketing efforts.

For the full year, the company expects revenue to reach $183 million, which would mark 47% growth from 2020. The only downside for SEMrush is its profitability. Even after 13 years of operations, the company lost $279,000 in Q2 2021. This was, however, a strong improvement from a net loss of over $2 million one year ago. Free cash flow stands at $9 million so far this year, and with cash balance of over $180 million, a minor net loss is not a dealbreaker for the company.

Aside from valuation risk -- which is higher than Similarweb's valuation of 12 times sales -- the company is facing heavy competition. While its analytics platform isn't as unbiased as SEMrush's, Google and Facebook are heavy hitters in this industry, and companies only looking to advertise on those two sites might overlook SEMrush. There's also plenty of competition from smaller pure plays in each respective marketing technology category, and while SEMrush is a leader in many of those spaces, it could potentially lose out to competitors that focus on one specific advertising category.

What many companies want, however, is an all-in-one solution. Many of SEMrush's enterprise customers are not looking to advertise through one avenue, but through many, and SEMrush provides enterprises with one platform where they can analyze data for all of those advertising strategies.

SEMrush's vast data assets and comprehensive solution -- which has been shown to be very valuable and successful to have -- are unmatched by its competitors. It's also extremely important to its enterprise customers who are looking for actionable data and insight to make effective marketing decisions.

With a current market opportunity of over $13 billion, this company clearly has tons of potential to expand, and with its unique, hard-to-replicate solution, SEMrush is well-positioned to capitalize on it. Because of this, SEMrush is still worth buying today, even though it has already seen strong share-price growth.

This article represents the opinion of the writer, who may disagree with the official recommendation position of a Motley Fool premium advisory service. Were motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

See more here:
This Company Has Nearly Doubled Since Its March IPO. Is It a Buy? - Motley Fool

Colin Powell’s death: The end of an era for moderate Republicans? – USA TODAY

  1. Colin Powell's death: The end of an era for moderate Republicans?  USA TODAY
  2. The Colin Powell Republican no longer exists in the Republican Party  CNN
  3. What Colin Powell said about Barack Obama and Islamophobia  NPR
  4. Republicans wanted Colin Powell to run for president in 1996, but he declined  The Washington Post
  5. As a Black Republican, Colin Powell challenged party to be more inclusive  Yahoo News
  6. View Full Coverage on Google News

Go here to read the rest:
Colin Powell's death: The end of an era for moderate Republicans? - USA TODAY

Why Democratic Gains In Texass Big Metro Areas Could Outweigh Republican Success In South Texas – FiveThirtyEight

In his first public appearance after the attack on the U.S. Capitol, then-President Donald Trump sought respite in South Texas. His visit was billed as a way to promote the construction of a wall along the border with Mexico, but it also gave him a welcome escape from the turmoil in Washington. Thats because, just months prior, voters in Texass border region shifted sharply toward Trump.

And Trump isnt the only Republican to see success in South Texas. In June, Javier Villalobos, a former Hidalgo County GOP chair, narrowly bested Veronica Vela Whitacre in a McAllen municipal election. Though the race was technically nonpartisan, local GOP officials insisted Villalobos was the first registered Republican elected mayor of the city this century. The macro realignment accelerates in South Texas, and elsewhere, as Hispanics rally to America First, former Trump campaign adviser Steve Cortes tweeted at the time.

Its why Republicans, headed into the 2022 midterms, plan to campaign in the area more heavily now than they did before. Moreover, through the redistricting process, which Republicans control in Texas, they have positioned themselves to hold a sizable and long-term majority of House seats, including by making it easier to win at least one border-area district currently represented by a Democrat. Whether Republicans will continue to make inroads in the Texas counties along or near the border is unclear there is conflicting evidence over just how much Hispanic voters moved toward the GOP in 2020 but if Republicans are successful there, it might not mean a death knell for Democrats hoping to turn Texas blue. Thats because Democrats have made sizable gains in the Texas suburbs.

The state as a whole has long voted reliably Republican, but about two-thirds of Texass population lives in one of the states four huge metropolitan areas Dallas-Fort Worth, Houston, San Antonio and Austin. If you combine all the votes there, Democrats improved their margin by more than 5 percentage points between 2016 and 2020, carrying these areas 52 percent to 47 percent in November. This shift is significant because even though Texass border counties moved sharply to the right in 2020 Starr County, for instance, swung a staggering 55 points toward Republicans Democrats gains in those four big cities and their suburbs added almost five times as many votes as Republicans gains in 28 counties along or near Texass border with Mexico.

This is not to downplay Republicans gains along the border and in South Texas. Trump ultimately won 14 of these 28 counties eight of which he flipped from 2016 with many more counties than Starr lurching to the right: Maverick County moved 46 points to the right, Zapata County moved 38 points, Webb County moved 28 points and Hidalgo County moved 23 points. Hidalgo, with around 871,000 people, is the most populous county in the border area (edging out El Paso Countys 866,000), which made its shift toward Trump especially impactful in terms of raw vote totals. To be clear, President Biden still won the overall vote across the border and South Texas counties by 17 points, but this was about half the margin Hillary Clinton had in 2016, when she won the region by 33 points.

Why Texass border region shifted so dramatically toward Republicans compared with the rest of the state has no one answer. According to Jason Villalba, the chairman and CEO of the Texas Hispanic Policy Foundation and a former GOP representative in the state House, some national Democrats leftward shift on issues like clean energy and fossil fuels and policing including calls to abolish or restructure U.S. Immigration and Customs Enforcement likely turned off Hispanics along the Texas-Mexico border, who make up 85 percent of the population in those 28 counties and 23 percent of all Hispanics in the state. Being labeled as against fossil fuels and supportive of defunding the police is not a winning message when the majority of the communities in the region are economically impacted by those two drivers, Villalba said. Then, layer on a cult of personality figure like Trump and the Democrats are going to have a real problem, which they did.

Of course, Hispanic voters arent a monolith, and without Trumps name on the ballot, its hard to tell whether Republican gains in South Texas will last. But so far, Biden isnt polling particularly well with Hispanic voters in the state. A September poll from The Dallas Morning News/University of Texas-Tyler put Biden 19 points underwater with Hispanic voters in Texas, while a separate Quinnipiac University poll the same month had him down 18 points among Hispanic registered voters in Texas. On top of that, Villalba said Democrats took the border region for granted in 2020, focusing much of their campaign on turning out Democrats in the states suburbs rather than Hispanic voters at the border with Mexico.

South Texas and the border area is also very rural, which may also have played an outsize role in why Republicans gained so much ground there. In 2020, the more rural the area, the better Trump tended to do, and places with large Hispanic populations were no exception. This may explain in part why Trump performed so much better in more rural Starr and Maverick counties than in El Paso County, where Trump did only about 8 points better in 2020 than in 2016. This cant explain all the differences, however, as Hidalgo and Webb counties are also more urban, yet Trump improved by more than 20 points in both.

Another factor driving what we saw in 2020 could be educational attainment among Hispanics. Polarization by education has been a trend among white voters for years now, as Democrats have steadily picked up support among those with at least a four-year degree while losing support among those without one. But this trend may be affecting Latino voters, too, as Pew Research Center found Biden won 69 percent of Hispanics with a college degree nationally, but only 55 percent among those with some college or less. As a whole, the Texas border area isnt as highly educated as the states metro areas, so this also may have played into the disparate shift to the right in many parts of the border region and South Texas. However, the share of Hispanics with a college degree in the border area is actually similar to that of the major metro areas as a whole, so this is far from clear-cut.

But Democratic losses in the border areas may not frustrate their efforts to eventually turn Texas blue, primarily because the states four most populous metropolitan areas have trended Democratic over the past four years. These opposing trends potentially form a favorable tradeoff for Democrats because a lot more voters live in and around Dallas-Fort Worth, Houston, San Antonio and Austin than in the border regions. As the table below shows, those four big cities and their surroundings contributed nearly 70 percent of Texass 2020 presidential vote total, and all of them shifted left.

Texas metro areas got bluer in 2020

Shift in presidential election vote from 2016 to 2020, by metropolitan area or region

*This region consists of the following 28 counties near or along the states border with Mexico: Brewster, Brooks, Cameron, Culberson, Dimmit, Duval, El Paso, Frio, Hidalgo, Hudspeth, Jeff Davis, Jim Hogg, Jim Wells, Kenedy, Kinney, Kleberg, La Salle, Maverick, Nueces, Presidio, Reeves, Starr, Terrell, Val Verde, Webb, Willacy, Zapata and Zavala.

Source: Dave Leips Atlas of U.S. Presidential Elections

These shifts allowed Biden to narrowly carry the Dallas-Fort Worth, Houston and San Antonio metropolitan areas after Trump won them in 2016. It also boosted the Democrats edge in the Austin region. And what this did in terms of raw vote totals is telling: Compared with the 2016 election, Democrats added around 416,000 net votes the total Biden gained over Clinton minus the total Trump gained from these four metro areas. In contrast, Trumps improvement in the 28 counties along the border and in South Texas produced only about 89,000 more net votes for the GOP. Although Trump was also helped by the rest of the state, which gave him about 151,000 additional net votes, the Democrats showing in those four big population centers outpaced what was happening outside them. This wasnt enough to turn Texas blue Trump still won the state by about 631,000 votes but it could point to a favorable trend for Democrats in the long run.

Biden didnt make gains just in the core cities in these metropolitan areas, though. He also fared better in the suburban and exurban counties around them. In this way, Texas was a microcosm of what we saw across the nation in 2020, as Democrats made gains in the inner and outer rings surrounding cities, which proved critical to Bidens victory. As the second-most-populous state in the country, Texas has many suburban and exurban areas, too, and there were many striking examples of red areas becoming bluer. With nearly 2 million people between them, Collin and Denton counties, north of Dallas-Fort Worth, shifted markedly to the left: Biden did about 12 points better than Clinton in each, converting places that Trump won in 2016 by 17 and 20 points, respectively, into only single-digit wins in 2020. With 609,000 inhabitants, Williamson County, which contains a small portion of northern Austin and a lot of suburban turf, even went from red to blue, going from about a 10-point Trump win in 2016 to a 1-point Biden win in 2020. Not every suburban or exurban county moved as much, but almost every county in the four big Texas metros got bluer in 2020.

In the suburban and exurban areas, theres been a movement away from Trump and to the left. Hes really been a cancer for moderate-type voters, educated voters and voters who have typically been centrists, Villalba said.

In fact, Democratic gains and changing demographic trends in the Texas suburbs have become such a force that Republicans have opted to cede some of that turf to Democrats to ensure overall GOP control. While Republicans are hoping to win over some of those South Texas seats in the U.S. House, their likely congressional map intentionally draws Democratic Reps. Colin Allred of Dallas and Lizzie Pannill Fletcher of Houston into safely Democratic districts that had formerly been competitive suburban seats. The GOP-controlled state legislature also placed one of Texass new districts in Austin, a Democratic stronghold, to pack in as many Democrats as they could to help make surrounding seats redder.

With all that being said, Hispanic voters trending further to the right in the big metro areas could be an obstacle for Democrats. While Republicans made big gains in South Texas and along the border, heavily Hispanic neighborhoods in cities like Houston also inched toward the GOP, although they still voted overwhelmingly Democratic. Should that trend continue, however, it would complicate Democrats ability to add more votes from the big metro areas. As such, its certainly in the GOPs interest not only to make gains along the border but also to make inroads in Hispanic communities in more populous areas that still lean Democratic.

After all, elections are won at the margins, and thatll be true in Texas moving forward. Considering the magnitude of the Democratic gains in the major metropolitan areas, especially in the suburbs and exurbs, Republicans hold on Texas might be weakening. But depending on how electoral and demographic trends evolve, the GOPs grip could tighten again or slip entirely.

Link:
Why Democratic Gains In Texass Big Metro Areas Could Outweigh Republican Success In South Texas - FiveThirtyEight