There are, however, regulations affecting how one uses e-mail to sell. So far, there are no regulations regarding sugging, although that may change if the FTC decides a crackdown is needed. Jack Neff, “Spate of Recalls Boost Potency of User Reviews,” Advertising Age 78, no. One study found that over 60 percent of buyers look for online reviews for their most important purchases, including over 45 percent of senior citizens. So how do you know which ones to trust? Oftentimes you don’t. Caveat emptor means, “let the buyer beware,” or “it’s your own fault if you buy it and it doesn’t work!” Product reviews can be posted by anyone-even by a company or its competitors. Truly, in no other marketplace should the term caveat emptor apply as strongly as it does on the Internet. And when they aren’t from real customers, the company is guilty of sugging. More difficult to trust are anonymous reviews we assume they come from real customers, but that is not always true. If it weren’t, Stubb’s would be lying, yet we expect companies to post true statements if they are positive. This customer comment, posted on, is really from a customer. Sugging seems to be a good term to apply to fake reviews, as well. More recently, some companies have hired young, good-looking, outgoing men and women to hang out in bars and surreptitiously promote a particular brand of alcohol or cigarettes. The term was primarily applied to a practice in which a salesperson would pretend to be doing marketing research by interviewing a consumer, and then turn the consumer’s answers into reasons to buy. (a word created from the first letters of selling under the guise, or SUG). Once upon a time, before the days of the Internet, any form of selling under another guise or a phony front was called sugging Any form of selling under another guise or under a phony front. Unfortunately, such an experience has happened so often that the Federal Trade Commission (FTC) is now considering rewriting rules regarding endorsements and whether companies need to announce their sponsorships of messages. Little surprise, then, when you later discover that the company actually paid people to post those positive reviews! Yet what actually happens is vastly different-and a complete disaster. One company has particularly good reviews so you hire it. Your employer is paying for your moving expenses, so you go online to see what people have to say about the different moving companies. You are about to graduate and move to another city to start a new job. Explain the laws that regulate online and other types of marketing.Apply general ethical principles and concepts to online marketing.
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