The Washington Post reports that The Federal Trade Commission yesterday said that companies engaging in word-of-mouth marketing, in which people are compensated to promote products to their peers, must disclose those relationships.

Unfortunately the new ruling by the FCC isn't likely to stop shills from posting bogus testimonials on the web. Nor will it expunge the zillions that are already out there. But let’s hope, at least, it can make those desperate product hawkers think a little harder about the ethical implications of all the new marketing tactics they’re playing with. We can only hope that the FTC's involvement proves to be good for the word-of-mouth marketing industry and not just another jobs program for lawyers.

-Jeff