State University of New York Institute of Technology
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Pay for Performance?

"ADT Corp has settled with U.S. regulators who accused the home security company of paying safety experts to endorse its products without disclosing the arrangement, the Federal Trade Commission said on Thursday," according to an article in Reuters."

In recent reading, we learned that most professional association's and organization's codes of ethics include at least one rule regarding payment for endorsements. Certified members are generally banned from making statements about a product or service in exchange for favors or payment, unless they disclose that they are receiving payment for their expert opinion.

By sharing with the public that the professional has been paid to endorse a product, people can take that into account when evaluating the product or service before buying. The opinion of a professional carries weight, and should be given honestly, whether by offering it without conditions, or in an acknowledged paid capacity.

http://www.reuters.com/article/2014/03/06/usa-advertising-adt-idUSL1N0M31O420140306


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