Gov't to Bloggers: Fess Up or Pay Up

In this May 15, 2012 photo, visitors examine a model of the proposed expansion of the Chelsea Market in New York. One hundred years after the introduction of the Oreo, the complex that was once the former home to Nabisco is slated for an expansion many neighborhood residents oppose. (AP Photo/Richard Drew) / Richard Drew

This article was written by Caroline McCarthy.

Independent bloggers who fail to disclose paid reviews or freebies can face up to $11,000 in fines from the Federal Trade Commission, according to revisions to the agency's "Guides Concerning the Use of Endorsements and Testimonials in Advertising" published Monday.

This marks the first time that the Guides document has been updated since 1980.

From an FTC-issued release:

"The revised Guides also add new examples to illustrate the long standing principle that 'material connections' (sometimes payments or free products) between advertisers and endorsers - connections that consumers would not expect - must be disclosed. These examples address what constitutes an endorsement when the message is conveyed by bloggers or other 'word-of-mouth' marketers. The revised Guides specify that while decisions will be reached on a case-by-case basis, the post of a blogger who receives cash or in-kind payment to review a product is considered an endorsement. Thus, bloggers who make an endorsement must disclose the material connections they share with the seller of the product or service."

The FTC also has its eye on celebrities. "Celebrities have a duty to disclose their relationships with advertisers when making endorsements outside the context of traditional ads, such as on talk shows or in social media," the release explaining the revisions explained.

That means, theoretically, that if a celebrity gushes about a new car on his or her Twitter account and it turns out that the car was given away for free, the celebrity could be fined by the FTC.

Word of the FTC's crackdown on blogger endorsements first broke in June and set off a wave of chatter in communities of bloggers who are well used to receiving and keeping free products from marketers and PR agencies - most notably the thriving "mommy blogger" sector.

It's going to be hard to police - there are a lot of bloggers out there, not to mention a lot of different kinds of bloggers, and a lot of marketers. And as some media critics have pointed out, undisclosed endorsements of freebies have plagued some sectors of the magazine industry for decades now.
By Caroline McCarthy

[antoniof123]

I think that everyone should be forced to tell the truth and if they don't close them down take everything from them.

But then hey that would be asking for people to be honest and we couldn't have that.

[SHEETPAN]

Hey bubba, GE, One of the biggest corporations on the planet. Owns NBC and MSNBC. GE has made green technology the cornerstone of thier future business model. All of the the tax breaks, subsidies, and future environmental rules and regulations will make GE boatloads of money. Olberman, Maddow , The Ed show , Matthews and the whole cast at MSNBC are completly in the tank for all of the alternative energies. They even promote what they call green week every so often to promote green awareness. Let's at least attempt to be rational. Where as GE stands to make a fortune on alterative energies promoted by talk show hosts of a TV station that they own. Radio stations do not have the direct financial interest that GE has as far as energy use is concerned. And the fact that you correlate the guidelines on Blogging to Conservative radio hosts, Which are two completly different mediums. Only shows yourself to be a left wing hack.

[bubbadubba]

But of course Rush Limbaugh, Hannity, and Beck will be exempt as they promote the agenda of the oil companies who are among their biggest sponsors (oil and natural gas producers association etc.).

[republicanright]

Blogs are a productive and important part of communication. However a reader should know when a blogger is being paid to endorse a commercial or political product.