Commentary Addressing Risks and Opportunities Through the Lifecycle of Data, Technology, Advertising and Innovation

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A consumer institute, Center for Digital Democracy, filed a <a href="http://case-studies.digitalads.org/wp-content/uploads/2011/10/complaint.pdf">complaint</a> and request for investigation with the FTC on October 19 related to the marketing of Doritos to adolescents.&nbsp; The complaint cites a <a href="http://case-studies.digitalads.org/wp-content/uploads/2011/10/complaint.pdf">research report</a>, Digital Food Marketing to Children &amp; Adolescents, which identifies digital marketing practices that purportedly pose threats to the health of children.&nbsp; Some of the Doritos marketing campaigns referenced in the complaint won prestigious marketing awards, including the Hotel 626 campaign.&nbsp; &nbsp;&nbsp;&nbsp;
The complaint alleges that Pepsi&rsquo;s subsidiary Frito-Lay engaged in deceptive and unfair digital marketing practices in violation of &sect;5 of the FTC Act through a social media marketing campaign (contests, video games, concerts) targeted at teens because: (1) the marketing campaign is disguised as entertainment instead of advertising; (2) Pepsi fails to adequately protect the personal information it collects from teens and it collects personal information from teens without giving meaningful notice and consent; and (3) its use of viral marketing through Facebook and Twitter endorsements by teens violates the FTC&rsquo;s Endorsement Guidelines.&nbsp; The complaint also alleges that the campaign contains material misrepresentations and omissions because consumption of Doritos harms the health of teens.&nbsp;
We are following the FTC&rsquo;s response to this complaint because the arguments made by the complaint could conceivably apply to the use of social media by many large brands.&nbsp;

Snack Food Company’s Social Media Marketing Campaign Directed at Teens Draws FTC Complaint