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Bloggers or advertisers? Identity of undercover advertisers

Since 2006, social media have grown exponentially. A 2011 study points out that social media are becoming an important source of information for consumers. Clearly, companies are turning to social media in addition to more traditional channels of communication to capture consumers' attention.

However, some social media business practices are questionable. These include "flogging" (a fake blog) and "astroturfing" (using a pseudonym and fictitious identity to interact). Companies use these practices to promote their products or run campaigns. They pretend to be ordinary citizens, which has the effect of luring the consumer. This is one of the reasons why these practices are condemned by marketing and public relations experts.

The aim of this research is to identify the phenomena of flogging and astroturfing, to study their legitimacy and ethical value, and to analyze their impact on the consumer, in order to formulate recommendations that will enable legislators to better protect citizens against these commercial practices.

At the end of this study, Option consommateurs draws the following conclusions:

  • The phenomena of flogging and astroturfing are relatively widespread: examples even come from large companies.
  • At present, no tool can detect these practices. To recognize flogging and astroturfing, it would be necessary to carry out a lengthy investigation each time.
  • The United States and the United Kingdom have regulated these practices, while Canada has passed legislation that has not yet been implemented. The only law currently applicable
    is that concerning false or misleading advertising.
  • In Canada, there is no case law on flogging or astroturfing.
  • When it comes to flogging and astroturfing, there's no formal external complaints handling process in Canada, nor is there any organization specifically dedicated to this area.

At the end of this study, Option consommateurs makes the following recommendations:

  1. Bring into force the Act to promote the efficiency and adaptability of the Canadian economy by regulating certain practices that discourage reliance on electronic means of carrying on business, and to amend the Canadian Radio-television and Telecommunications Commission Act, the Competition Act, the Personal Information Protection and Electronic Documents Act, the Telecommunications Act and the Electronic Commerce Protection Regulations (CRTC) as soon as possible.
  2. Apply this law quickly so that abusive practices can be prevented
  3. Set up an external complaints resolution body with sanctioning powers - like the Canadian Radio-television and Telecommunications Commission (CRTC) for telecommunications - and equip it with detection tools.
  4. Implement training and awareness tools for both industry and consumers. These tools could be developed by the CRTC or the Competition Bureau in collaboration with a consumer association, such as Option consommateurs.