So why would these new laws have anything to do with us here in the Whitsundays and the rest of Australia? The 3 main reasons are:
1. Anyone posting to a service that has its servers (computers) based in the USA, must abide by these new Disclosure laws. The Big 3 of Social Networking are all based in California, USA - Twitter is based in San Francisco; FaceBook is based in Palo Alto, and MySpace is based in Los Angeles.
2. Any business that trades using a US based web host is deemed to be trading from within the USA. The fact that the website owner may be a foreign resident does not excuse her/him from the laws of the United States.
3. The Australia-United States Free Trade Agreement (AUSFTA) entered into force on 1 January 2005. AUSFTA is a comprehensive agreement that includes telecommunications, competition-related matters, electronic commerce and intellectual property rights. Full text of the Agreement .
This is a good thing for consumers. While most webmasters are honest and sincerely present their products and services in their true form, some website developers and owners have been unethical with their marketing efforts. The new disclosure laws are designed to protect consumers from fraudulent practices, and those people who condone them, and to upgrade unethical practices from being 'a white lie' to an offence.
The goal of the new Laws are to keep marketers and website developers honest, which might seem like an easy task, but it's not that easy because we all have different ideas of what constitutes the whole truth in various situations, and in some marketing situations, it's literally impossible to know the whole truth or which truth to communicate where more than one truth is possible.
An excellent example of seeing two (2) sides to a Marketing story is our ongoing series on 'The Best Job in the World' campaign:
Do the Whitsundays deserve to hear both sides of a story?
Has the 'Worlds Best Job' increased awareness in your part of QLD?
Even the 'Best Idea in the World' can fail
"You must be transparent about your relationship with people providing endorsements or testimonials.""Website Developers are subject to liability for false or unsubstantiated statements made through endorsements, or for failing to disclose material connections between themselves and their endorsers. Endorsers also may be liable for statements made in the course of their endorsements. The new laws require people who are known by the website developer and are endorsing their products to disclose the nature of the relationship."
"If there is a connection between the endorser and the seller of the advertised product that might materially affect the weight or credibility of the endorsement (i.e., the connection is not reasonably expected by the audience) - even in-kind compensation -then you must "fully" disclose the nature of the connection."
(Kevin E. Houchin - Lawyer and Author, Fort Collins, Colorado, USA ).
(Kevin E. Houchin - Lawyer and Author, Fort Collins, Colorado, USA ).
Let us look at an example of what will probably be illegal as from tomorrow.
The Facebook page for Boathaven Spa and Resort in Airlie Beach has some interesting 'reviews'. Boathaven Spa and Resort is part-owned by Kellie Medford, a Director of Tourism Whitsundays (TW), the semi-government Regional Tourism Organization (RTO) for the Whitsundays (Airlie Beach, Hamilton Island etc...); TW comes under the umbrella of Tourism Queensland.Ms Medford claims to be the 'creator' of the Boathaven Spa and Resort's FaceBook page, where there are eight (8) referrals over the last eight (8) months.
The very first 'experience sharer' is a Lyn Gregson, who writes on March 23, 2009: Lyn Gregson "I have stayed at Boarhaven(sic) Spa & Resort and so have some of my staff, the accomodation(sic) is great and the location so convenient, I would recommend this property"
Seems innocent enough?
Well, this is why the new Disclosure and Transparency laws are coming in. Ms Gregson, who wrote the 'review', lives in Airlie Beach. At the time of writing the 'review', she was a Director and Chairperson of Tourism Whitsundays, of which Ms Medford is now a director of.
M
s Medford has a friendship with Ms Gregson, as you can tell from the first 'Friend' in her Facebook page. Ms Medford also displayed her friendship with Ms Gregson publicly recently, by defending her with correspondence sent to myself.
s Medford has a friendship with Ms Gregson, as you can tell from the first 'Friend' in her Facebook page. Ms Medford also displayed her friendship with Ms Gregson publicly recently, by defending her with correspondence sent to myself.Ms Gregson in her 'review' allegedly fails to be transparent by not disclosing to you about her relationship with Ms Medford, that she actually lives in Airlie Beach, and that she was also Chairperson of Tourism Whitsundays.
A 'Megan' (no longer registered on Facebook) gave a glowing (and the longest) account of her stay at the 'resort' on March 28.
On March 27 2009 at 11.17am, Jackie Maxwell wrote: "What a place to stay. If you ever get the chance - you should."However, Ms Maxwell fails to say that she too lives in Airlie Beach, and has a personal friendship with not only Ms Medford, but also Ms Gregson (see 'Friends of Jackie Maxwell's Facebook page).
On March 31 at 5:40am Anne McDonald, a neighbour wrote: "Hi I have not stayed at Boathaven resort but I live 2 doors away and I know people that have and like me the location is fantastic - opposite the new Port of Airlie - ok not finished yet - so if you have the opportunity to stay - call Kelli. Anne"
As Ms McDonald has pointed out, across the road from Boathaven Spa and Resort is the huge 'Port of Airlie' construction site. To put the size of this construction into perspective, I have included some stories from our local paper, the ABC, and the latest image from Google Earth - Boathaven Spa and Resort is shaded in yellow.
Whitsunday Times - Jul 11, 2008
CONSTRUCTION hours on the Port of Airlie development have been changed following community concern about noise levels. Apartment owners and managers last ...
Port of Airlie noise respite looms
While not all the Directors and Members of Tourism Whitsundays have colourful and creative descriptions of their private business concerns, Ms Gregson and Ms Medford are not alone. Other Directors of Tourism Whitsundays have had comments on public websites removed, because, well, they allegedly weren't thruthful.
One day, maybe, everyone will play by the rules on a level playing ground. The new FTC laws coming into effect tomorrow are a good start.
CONSTRUCTION hours on the Port of Airlie development have been changed following community concern about noise levels. Apartment owners and managers last ...
Port of Airlie noise respite looms
ABC Regional Online - ABC Regional Online - Sep 8, 2008
The developers of the Port of Airlie project says tourist operators will be given a break from noisy construction this school holidays. ...
The developers of the Port of Airlie project says tourist operators will be given a break from noisy construction this school holidays. ...
While not all the Directors and Members of Tourism Whitsundays have colourful and creative descriptions of their private business concerns, Ms Gregson and Ms Medford are not alone. Other Directors of Tourism Whitsundays have had comments on public websites removed, because, well, they allegedly weren't thruthful.
One day, maybe, everyone will play by the rules on a level playing ground. The new FTC laws coming into effect tomorrow are a good start.
You can complain about the behaviour of a Tourism Whitsundays member. Apparently, a TW member will be dismissed if they have failed to abide by TW Rules three (3) times. The TW website says it has a form for complaints, but I couldnt find it. Try contacting them direct.
I found at least four (4) sites on Facebook connected to Boathaven Spa and Resort".
Site 1 Site 2 Site 3 Site 4
Site 1 Site 2 Site 3 Site 4
Sourced from:
Australian Department of Foreign Affairs and Trade
United States Federal Trade Commission
Image from Whitsunday Times, October 1 2009, Front page.
Satellite image from Google Earth
Kevin E. Houchin - Lawyer and Author, Fort Collins, Colorado, USA
joelcomm.com
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