Bloggers Must Disclose Payments, Free Products

From the Christian Bookseller's Association:

FTC issues new guidelines: Bloggers must disclose payments, free product received for reviews.

In an article that appeared on yesterday’s CNNMoney.com, the site’s staff writer, David Goldman, reported that the Federal Trade Commission is “going after bloggers, celebrities and tall tales in the first revision of its rules for endorsements and product reviews in nearly 30 years.”

According to the article, the new guidelines, effective Dec. 1, “are designed to adapt to a new world in which blogs and social media Web sites such as Facebook and Twitter have quickly become go-to destinations for consumers to get an opinion about a product. The last FTC rules revision was in 1980.”

Furthermore, “an existing FTC rule that states product reviewers must reveal any connection they have with advertisers was extended to bloggers. Companies will often distribute free products to bloggers for their review, and sometimes advertisers offer payment for endorsements. The FTC said that endorsements on blogs appear to be ‘word of mouth,’ but that is not always the case—sometimes companies create their own blogs that can give the aura of objectivity.

The new rules also clarify that celebrity endorsers of products must reveal their relationships with advertisers when making endorsements if they are pushing a product on a blog, social network or television talk show.”

If product endorsers and reviewers don’t comply, “the existing rules carry a fine as high as $11,000.”

Because enforcement could be difficult, the FTC said it is “more likely to go after advertisers rather than bloggers to ensure ad companies are giving product reviewers proper instructions about disclosure compliance.”