BzzAgent, Boston firm that got a cover story in the Dec. 5 New York Times Magazine, uses "word-of-mouth" publicity techniques that cross the line of ethics. Its "agents," who get free samples of products, boost them to others without necessarily saying they get the samples.

The Times magazine devoted ten pages to the technique noting that it is used by Procter & Gamble and other major companies.

Times magazine fronts word-of-mouth marketing Dec. 5.

P&G has 240,000 teenagers who push products for its Tremor "word-of-mouth" unit.

Major PR firms including Edelman PR Worldwide and Burson-Marsteller are members of WOMMA, the "Word of Mouth Marketing Assn.," which plans to unveil an "Ethical Code" in January.

This won't be soon enough for "Blogethics," which says BzzAgent and members of WOMMA, are "evil word of mouth marketers."

Other members are BzzAgent; Intelliseek; Harvard Business School; BuzzMetrics; NOP World; Organic, Rowland Communications, Soapbox Marketing, Start Sampling, Visible Path, FanPimp, Echopinion, Electric Artists, Friendster, Bolt Media and Wabash & Lake.

For those not familiar with word of mouth marketing, the ploy by Sony Ericsson several years ago for its new camera phone, provides an example.

The company hired 600 actors in 10 cities to ask passersby to take pictures with the new camera. The actors praised the device.

Eastman Kodak has hired people to walk around fairs and amusement parks with a new camera around their necks as part of the introduction process. They may also hand out sales materials.

Another word of mouth technique is to hire people to read books in a conspicuous manner in public transportation.

'Feel Free' to Identify Sponsor, Says Code

The "Code of Conduct" of BzzAgent says its agents should "feel free" to tell friends that they're "involved" with BzzAgent.

"Most" of the agents hide the relationship "most of the time," wrote article author Robert Walker.

A spokesperson for BzzAgent said this was Walker's opinion and not something anyone at the company said.

We told founder Dave Balter that the code should read, BzzAgents "must" tell friends.

The old as well as the new PRSA code bars "stealth" communications such as this.

The previous code, which was dropped in 2000, said PR pros must not profess to be "independent or unbiased" when they serve an "undisclosed interest."

PR pros should "preserve the free flow of unprejudiced information," says the new code. They're also supposed to "disclose any existing or potential conflict of interest" and disclose "any financial interest."

These are common sense principles and should apply to anyone selling or promoting anything.

While BzzAgent does not pay cash to its agents, it does give them free samples and "points." Exactly what the points bring is not defined.

Balter said he is "struggling" with the transparency issue, wondering "where the line should be drawn." People are not asked to promote products they don't believe in, he notes.

But one PR veteran said: "Friends don't buzz friends, do they?"

WOMMA, reacting to the criticism by Blogethics, says its purpose is to "fight against underhanded online marketing, including random, anonymous attacks and the practice of invading other websites."

This seems to be a reference to Blogethics.

WOMMA says it is dedicated to "win-win ethics standards" and will release a Word of Mouth Marketing Ethical Code in January.

Book Described Mind Bending Tricks

Influence, The Psychology of Persuasion, by Arizona State Univ. Prof. Robert Cialdini, describes psychological tricks used in selling.

Cialdini wrote 'Influence' for consumers but marketers have been eating it up.

Cialdini wrote it for use by consumers but said marketers have been the biggest buyers.

Advises Cialdini: beware of people doing favors for you or asking you to do favors for them because this may be the opening stage of a set up.

Don't answer polls or sign petitions, he says, for the same reason. Political "push polls" are one example.

In one classic study, homeowners were asked to sign a petition to "keep California beautiful." The next week, they were asked to display a big sign on their lawns saying, "DRIVE CAREFULLY."

Half the signers agreed to do this while almost no one else did. The signers had defined themselves as public-spirited citizens and were afraid of being seen as hypocrites if they didn't allow what was an ugly sign.

Some real estate agents "set up" prospects by showing them overpriced "dogs" before lower-priced nicer homes, said Cialdini. His book cites one firm that owned the "dog" house in case a real house was not available for this purpose.

Christmas Toy Shortage Ploy

Cialdini described the "Christmas Toy Shortage Marketing Ploy" in which the maker of a well-advertised and popular toy makes too few of them to satisfy demand.

Post outs Nintendo's 'shortages'

Parents are forced to buy a substitute toy and then the preferred toy when it becomes available after Christmas.

This has the effect of nearly doubling sales, wrote Cialdini.

The New York Post Dec. 12 accused Nintendo of using this technique, saying many retailers have already sold out the $150 handheld video game, "Nintendo DS."

"How could Nintendo ship just 700,000 to the U.S. for its much-ballyhooed Nov. 21 debut?" asked the Post.

It accuses the company of "creating a retail frenzy" for a product that couldn't be bought" and says the company knew in the summer "there would be shortages."

The Post says the same ploy was pulled for Cabbage Patch Dolls, Tickle-Me-Elmo, and the Nintendo Game Boy.

The paper expects Nintendo to "rack up strong sales numbers through the spring" and that other companies will follow this marketing path by "shipping fewer" of their well-publicized products.