The Truth Behind FTC’s New Blogging Rules
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You could say it was a move thirty years in the making. The Federal Trade Commission updated its endorsement policy for the first time in over three decades Monday, this time amending what’s actually an 81 page document to finally include guidelines on bloggers. Most specifically, the update refined how bloggers should treat endorsements and their associated payments.
New FTC rules mandate that any blogger who offers an endorsement in their postings must disclose any payments received for the acknowledgement. Failure to do so could lead to a penalty of up to $11,000. Pretty steep, right? The FTC tells The Washington Post that it’s only trying to keep up with the times.
“Given that social media has become such a significant player in the advertising area, we thought it was necessary to address social media as well,” said Richard Cleland, assistant director for the division of advertising practices at the FTC.
The amendment should appease consumer interest groups (who had long griped over the FTC’s outdated regulations) but frustrate bloggers, many of whom are worried that they’ll come under scrutiny even if they offer the smallest of endorsements. Others, like Technologizer’s Harry McCracken, suggest that the real trouble lies in the vast amount of grey area wherein bloggers operate.
“I don’t mind being held to a high standard. But I’m still scratching my head over exactly how to make the FTC happy. The “material connections” are especially mystifying-since most of Technologizer’s revenue is derived from advertising, and most of our advertisers are technology companies, many of whom we cover in articles, we have “material connections” all over the place. Does the FTC want Technologizer to run a disclosure each time we mention a product from a company who’s advertised on this site? I’m not sure.”
Don’t worry too much though, bloggers. Keeping track of the blogosphere is something that will likely prove next to impossible for the FTC. In fact, Cleland has already admitted to certain concessions from the initial reports, one such being that advertisers must be aware of the blogger receiving a freebie for the blogger to be found liable. Secondly, and perhaps most importantly, fines won’t be handed out on a one-and-done basis. As Deborah Yao and Emoiy Fredrix reported, a blogger would have to run a “’substantial’ operation that violates FTC rules and already [have] received a warning” to be at risk.
And while the blogosphere has been all abuzz the past two days with criticism of the policy, the truth is that the FTC’s intentions should be lauded. Blogs are a blessing and a curse in the world of advocacy. With so many different voices floating around, it’s easy to get caught up in a piece of support that may not be appropriately accurate. Say there’s a food blogger who gets free meals in return for positive reviews. Without disclosing that information, that blogger would be giving potentially false information to the public. The FTC’s new standards mandate that you let the public know what’s a gift exchange and what’s a proper review.
In essence, it’s moving blog credibility one step closer to that of traditional media outlets. And maybe we don’t read them as often as we used to, but it’s those traditional media outlets we still recognize as the most authoritative and honest sources around.
What is I ran a Tweetup that is sponsored by the locations, does that mean I now would report that it is a sponsored event in the Tweets too?
How far can this be pressed?
Any time I write a post I am endorsing something whether I am being compensated or not. Often compensation is found in the back end of what ever I have endorsed and is not solicited in the beginning, given as a gift as a thank you for being mentioned.
[...] As a so-called professional blogger who makes a nominal income from my blog and as a blogger who severely depends on professional, business relationships with several companies and people who provide products and services that I am fortunate enough to have the ability to comment on through my writing, I obviously have quite a few thoughts about the FTC’s new guidelines. In my opinion, this is merely an attempt to put the putsch in motion to initiative even more guidelines and mandates on bloggers in the future. Let’s face it, blogging is the newest media revolution; although people have been sharing their thoughts on the internet for years, as soon as bloggers found a way to make an income from doing what they love, the government decided to stick its nose in it. Social media as a whole is constantly evolving and it was only a matter of time before the government decided to rule over the people and their freedom of speech, but this really just smells like an impending can of worms. How is the FTC going to know what bloggers don’t have disclosures on a blog post, especially considering a great deal of “professional” bloggers whose blogs make up their entire income, update their websites a dozen or more times every day. How is the FTC going to keep up with the constantly-evolving social media that it obviously doesn’t understand now? What is the truth behind FTC’s new blogging rules? [...]
to have the ability to comment on through my writing, I obviously have quite a few thoughts about the FTC’s new
FTC is like trying to get hands on the Gods of internet-no matter if they are even small ones.
It’s not that cut and dry. The FTC made it clear that they’re only going after the heavy hitters, so unless you’re guilty of the crime multiple times, you shouldn’t have much to worry about. Also, the policy is only in effect for those who receive compensation in advance.
As a barely budding blogger this scares me and I am not sure if I should just quit bloging all together or if I should take the time to research how the new blogging rules really affect me and make sure I am in compliance. I will probably do the latter, but it will be a lot of work to get to the bottom of it. It’s too bad that the government has go govern everything.
[...] what CHASE (Full Author Post) had to say about the matter [...]
nice first time heard this type of information. will keep in mind for next time
Tim Ferris had a pretty funny response – I kind of repurposed it here. There are bigger fish to fry – and I think the FTC is going after fake astroturf ‘grassroots’ orgs – run by corporate PR agencies for the benefit of the big boys. I at least hope that’s at play – Here’s my take –
http://hyperlocavore.wordpress.com/about/disclosure/
I’d love to hear what folks think…
oops.. checking the notification…