Category Archives: Gary McCormick

PRSA: Unethical Product Reviews Have No Place in PR

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Judge Striking the GavelLast Thursday (Aug. 26), the Federal Trade Commission (FTC) announced that Reverb Communications had settled charges alleging that the public relations firm had engaged in deceptive advertising practices by having its employees write and post positive reviews of clients’ games in the Apple iTunes Store, without disclosing that they had been compensated to do so.

The settlement brings to a close the Commission’s first case under its revised “Guidelines on the Use of Endorsements and Testimonials in Advertising,” which took effect Dec. 1, 2009.

Those guidelines state, in part, that advertisers (in this case Reverb) are subject to liability for failing to disclose material connections between themselves and their endorsers. In a section entitled, “Disclosure of Material Connections,” the guidelines state that: Continue reading

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In Full Public Disclosure, HP Recognizes Value of Reputation, Good PR

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Gary McCormickOn Aug. 6, HP announced that its Chairman, Chief Executive Officer and President Mark Hurd was resigning from the company. The announcement followed an investigation conducted by HP’s internal and external legal counsel into a sexual harassment claim lodged against Hurd and HP by a former HP contractor.

While the investigation determined that Hurd did not violate HP’s sexual harassment policy, it nevertheless uncovered a related offense, which ultimately prompted his dismissal. Hurd, according to HP, breached the company’s Standards of Business Conduct by making inappropriate payments to the contractor and charging personal expenses to his corporate expense account. Continue reading

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