FTC and The Blogosphere
With the explosion of the blogosphere, it was not a matter of if the FTC would step in, but when. The Federal Trade Commission has implemented revisions to the agency’s “Guides Concerning the Use of Endorsements and Testimonials in Advertising.” The regulations took effect December 1st and is the first time their Guides document has been updated since 1980. In effect the document states that there must be disclosure between advertisers and endorsers. If a blogger, for example, recommends a product and receives either payment for that endorsement or “freebies” of the product, it must be disclosed. Anyone who fails to disclose such information can be fined up to $11,000.
Not all blogs will be impacted by this particular Guide, but some of the so-called “mommy bloggers” who are receiving and keeping free products from marketers and public relation agencies, will certainly be looked at. We have all seen these blogs and there have been “undisclosed endorsements” for a long time. Testimonials must spell out what consumers should expect to experience with products. Weight loss products are listed as one example.
Since some fear abounds, the FTC noted that the enforcement makes it more likely that an advertiser would be targeted for disclosure or testimonial violations than a blogger. If a blogger has received a warning, however, about their blog violating FTC rules and continues, then penalties could be assessed to that blogger.
Twitter is no exception. Celebrities who use Twitter, for example, to rave about a their car and it happens that the car was given to them as a freebie but was not disclosed, the celebrity could be fined. The issues of conflicts of interest are at play here and must be disclosed. Some reports state that the rules are hazy, but disclosure must be “clear and conspicuous.”
Bloggers beware. If you are in this game for the money or freebies, you may be taking a risk. Go to the Internet and look up these updated regulations. It is incumbent upon bloggers to maintain credibility and the FTC is acting to ensure that. I am personally ambivalent about these particular rules since I am neither advertising or endorsing products. I will share something with you I have always told my children, and that is, never put anything in writing that you don’t want to have come back and bite you on the hind site. Get used to it folks. This may only be the beginning.
—cher
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I don’t have a problem with this. When in doubt, I’d rather they come down on the side of consumer protection.
If someone is getting freebies for their endorsement, damn straight they should disclose it and then explain why I should take their word on the product.
DISCLOSURE: Darwinfish2 does not receive anything for any editorial or product reviews because the owner is not technically or socially savvy enough to procure any.
Bloggers are getting FREE products? How is it I never heard about it? Where can I go to get this stuff? I blog about products all the time and I never knew I could get something for nothing. No one ever dropped anything off on my doorstep. LOL.
Everything has a price, everything!
I’m always surprised at how gullible people are. I mean isn’t obvious that any time a product or service is mentioned that it’s actually endorsed by the person mentioning it? Unless they specifically say they aren’t. And even then, I’m skeptical. I guess that’s part of my upbringing. Sometimes it’s good, sometimes not!
Bloggers or Celebrities should disclose if they are really advertising or endorsing. Although $11,000 seems kind of ridiculous.
I imagine the FTC will be looking to use people as examples at least in the beginning, similar to the music file sharers.
And on a different note: What a horrible weekend for football!! I’m still in shock!
bluzdude,
Good points and I agree that erring on the side of caution is a positive preemptive strike. When I watch the evening news, I hear more disclaimers about products than info about the product itself. If bloggers are to be taken seriously, that also means not manipulating people. BTW, I loved your disclaimer!
Gloria Kelley,
Yep, some get free stuff. I knew one blogger who got free coffee for plugging a certain brand. If they keep that up, there certainly will be a price, maybe $11,000.
ONE of THE GUYS,
People are gullible, aren’t they? I think the FTC will do this much as you suggested, kindred to fines for music file sharing. That was wrong as well.
Yoi! Football this weekend. My husband is still depressed.
They ought to have a Therapy Truck that drives through The Burgh on Monday like the Ice Cream Man.
“Yes, Mr. Therapy Man, I’d like the Cornerback Fell Down in Coverage Again Special, please. And make it fast, before I can get my hands on the kitchen knives. (Ginsu knives, in fact, the best knives money can buy. And I know because they sent me some to bri…uh, I mean, convince me!)”
I have to say that I have never received any gifts or ‘freebies’. Any revenue that my blog or website has earned is all sent into the tax man…so I have no worries. I am not surprised that they would eventually start looking closer at the bloggers world of $$$$.
When the world goes broke..it is not a funny thing at all.
The only freebies I have ever received are good wishes and positive comments which are worth more to me than any amount of bling
bluzdude,
I spite of the wretched loss, you had me rolling with laughter! Ginsu knives will never look the same to me.
DorothyL,
I don’t think there are many of us who need to be concerned, but it is noteworthy. Blog Catalog will be posting about this tomorrow morning, so for those who have not visited Blog Catalog, this is a great opportunity to see what a terrific blogging community looks like. Please visit http://blogcatalog.com/community
And D…you give all your readers so much, and none of it is in a material form. Your advice, support and caring nature is something money cannot buy.
My first reaction has been to say that I will not be affected, although I have done 3 book reviews in the past year. I guess I’ve assumed that you’d be expected to get a free book so that you can read and review it, but I guess I’d better double check the guidelines just in case.
Tina T,
Book reviews were mentioned in what I read in the regs. I think as long as you disclose that you received a book for free and were asked to review it, transparency guidelines have been met. It would serve all of us to read these guidelines so we are not caught unaware. There was a very good clarification of what is expected of bloggers posted on the Dashboard of Blog Catalog today. I would urge everyone to read it.
Dang. Hope Luke Ravenstahl doesn’t hear about this. I’m sure he could come up with some kind of a blogging tax to make us pay our “fair share.”
Carpetbagger,
Isn’t that the truth! With Luke, if there’s a will, there’s a way to tax it. Pittsburgh’s Boy Mayor ‘wanders’ here and there and hasn’t found a tax he didn’t like.