The Full Spectrum Blog

In an effort to regulate blogger endorsements, the Federal Trade Commission (FTC) announced new guidelines yesterday which require bloggers to disclose freebies or payments they receive from companies and/or advertisers in exchange for writing reviews of their products or services. These new rules, which go into effect on December 1, are the first update to the FTC Act since 1980 and carry a fine of up to $11,000.

While traditional news outlets are typically required to return items they review to the original source, bloggers have long been compensated for reviewing a product or service whether it's in the form of a free book or a free vacation - all in exchange for their write up, and inherent promotion.

While the FTC did not specifically mandate how these relationships should be disclosed, Rich Cleland, assistant director of the FTC's advertising practices division, said disclosure should be "clear and conspicuous" regardless of what format it takes.

As the FTC stated, "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. Likewise, if a company refers in an advertisement to the findings of a research organization that conducted research sponsored by the company, the advertisement must disclose the connection between the advertiser and the research organization. And a paid endorsement - like any other advertisement - is deceptive if it makes false or misleading claims. " (more...)