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FTC States Bloggers Must Disclose Paid Reviews 310

An anonymous reader writes to tell us that in the first revision of how endorsements and testimonials work since 1980, bloggers will now be required by the FTC to clearly disclose freebies or payments they received for product reviews. "the commission stopped short Monday of specifying how bloggers must disclose any conflicts of interest. The FTC said its commissioners voted 4-0 to approve the final guidelines, which had been expected. Penalties include up to $11,000 in fines per violation. The rules take effect Dec. 1."
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FTC States Bloggers Must Disclose Paid Reviews

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  • by Fierythrasher ( 777913 ) on Monday October 05, 2009 @12:52PM (#29646251) Homepage
    Um, it's FTC not FCC...big difference.
  • Re:Astroturfing. (Score:5, Informative)

    by sampas ( 256178 ) on Monday October 05, 2009 @12:52PM (#29646259)
    The new FTC rules aren't exclusive to bloggers. They cover celebrities, too. You can read the proposed rule changes on the FTC's site here: http://www2.ftc.gov/opa/2009/10/endortest.shtm [ftc.gov] and in detail here: http://www2.ftc.gov/os/2009/10/091005endorsementguidesfnnotice.pdf [ftc.gov] . Saying "results not typical" won't make it legal any more. Also, ads will need to disclose sponsored "independent research," e.g. "we paid this doctor $10k to help us sell this garbage." Finally, maybe Slashdot stories could include links to the primary source?
  • by EXTomar ( 78739 ) on Monday October 05, 2009 @12:53PM (#29646275)

    Doing this brings blogs into alignment with a lot of media paid advertising. No one should worry (or be elated) about the end of these things because even with the "This program is a paid advertisement of XYZ Co..." there are just as many infomercials floating around than there always was.

    Advertising isn't necessarily wrong (not necessarily right either but that is another thread). It is when advertising presents itself as something other than advertising that is a problem.

  • Re:US only (Score:5, Informative)

    by Fulcrum of Evil ( 560260 ) on Monday October 05, 2009 @12:54PM (#29646279)
    Last I checked, most places won't extradite you for things that aren't crimes in their legal code, especially when you did the deed in that country in the first place.
  • by MarkvW ( 1037596 ) on Monday October 05, 2009 @12:54PM (#29646281)

    This isn't about the FCC (Federal Communications Commission). It's about the Federal Trade Commission--the FTC.

    A blogger is one thing and an advertiser is another. Getting paid in exchange for publishing advertising copy is definitely something that is (and should be regulated).

  • Re:What's a blogger? (Score:5, Informative)

    by Bazzargh ( 39195 ) on Monday October 05, 2009 @12:56PM (#29646329)

    The actual FTC guidelines [ftc.gov] (Section V) don't use the word 'blog' in the guideline itself. Instead, they talk about 'endorsements' and define them like this:

    (b) For purposes of this part, an endorsement means any advertising message (including
    verbal statements, demonstrations, or depictions of the name, signature, likeness or other
    identifying personal characteristics of an individual or the name or seal of an organization) that
    consumers are likely to believe reflects the opinions, beliefs, findings, or experiences of a party
    other than the sponsoring advertiser, even if the views expressed by that party are identical to
    those of the sponsoring advertiser. The party whose opinions, beliefs, findings, or experience
    the message appears to reflect will be called the endorser and may be an individual, group, or
    institution.

    They give a bunch of specific examples (which do mention blogs), including one of astroturfing which implies this applies to appstore, amazon reviews (which would be nice). It does seem as if they mean things like twitter should be covered. There's also a bunch of circumstances they describe where you don't have to mention your affiliation, eg if you're a sports star with a clothing contract and always wear that brand off the field as well as on, or if you appear in a clearly-labelled advertisment giving a testimonial and are only paid for the ad - its a different if you have a financial interest in the product.

  • by WCMI92 ( 592436 ) on Monday October 05, 2009 @12:57PM (#29646339) Homepage

    So many blogs and websites are nothing but shills for publishers and vendors and don't disclose it. This should stop unethical companies like Sony sending out their paid astroturfers and viral marketers without it being disclosed.

    I also wonder how sites like MMORPG will survive when they have to disclose payments from publishers (like SOE) along with fluff pieces and "interviews" about them.

  • by Macthorpe ( 960048 ) on Monday October 05, 2009 @01:08PM (#29646531) Journal
    FCC =/= FTC.
  • Re:This is Crazy (Score:2, Informative)

    by Sandbags ( 964742 ) on Monday October 05, 2009 @01:18PM (#29646689) Journal

    That's not the point... It's NOT about reviewers. It;s about all the paid trolls kiving items 5 star reviews because they were paid to, so other people thing its a good product and buy it.

    Blog and Blogger do not require a definition. Simply, ANY statement of endorsement in print, media, or on the web, where ANY form of payment, discount, freebie, etc was given, with or without a request for a favorablke posting, requires disclosure.

    Also, since the penalty is not necessarily on the blogger, but on the company they're blogging on behalf of (if we can find the blogger, they get punbished too), the companies themselves will be seeking a bit more documentation to ensure anyone given a freebe, and especially paid endorsements, are explicity told they have to disclaim so. Companies that have the product wonp;t want negative FTC attention because people are illegally posting reviews of their stuff...

  • by Kickasso ( 210195 ) on Monday October 05, 2009 @01:25PM (#29646797)

    If Slap-Chop Manufacturing And Brain Surgeries Inc. gives you stuff in exchange for your endorsement of Slap-Chop, then you're affected. If they don't, you are not. Does it get any simpler than that?

  • Re:Moderation (Score:4, Informative)

    by TheKidWho ( 705796 ) on Monday October 05, 2009 @03:29PM (#29648471)

    Because you're being paranoid and delusional.

  • by Animats ( 122034 ) on Monday October 05, 2009 @03:29PM (#29648479) Homepage

    The FTC was totally out to lunch during the Bush years, especially on false advertising. Looks like they're back.

    A few more things they have to catch up on:

    • Enforcement of correct price advertising. The price most prominently advertised must be the actual price at which you can buy the thing. Not the "price excluding various fees". Not the "special introductory price that goes up in 3 months". The FTC used to be strict about that, and they need to crack down again. They'll probably also have to get after the scam of advertising a low price and tacking on huge "shipping fees", a popular scam on Amazon.
    • Prohibiting "up to" number advertising without equally prominent "at least" numbers. No more "High speed Internet up to 18 megabits/second". Speeds should be listed as "Speeds from 1 to 18 Megabits/second".
  • by SOdhner ( 1619761 ) on Monday October 05, 2009 @03:34PM (#29648555) Homepage Journal

    I would rather see people educated instead of regulated.

    Right. That's what this is. The changes are requiring the ads to *educate* the consumers regarding the strings attached to "endorsements". It's a really good thing, that will make it a little bit harder to lie or mislead people. Seriously, nobody is trying to take away your free speech or say that you can't endorse things all that you want. This is just about increasing the amount of truth in advertising.

  • Re:Get paid... (Score:2, Informative)

    by Blink Tag ( 944716 ) on Monday October 05, 2009 @03:37PM (#29648597) Homepage

    It's not the free copies of books/movies/whatever that are troubling (to me). It's the strong correlation between positive reviews and lucrative advertising contracts on some sites that I find deceptive. That's the part that should be disclosed.

    But that sort of activity is difficult to regulate against without banning product ads on the sites that review those same products.

  • by ygfperson ( 1147945 ) on Monday October 05, 2009 @07:08PM (#29651439)
    That etymology is very questionable. See http://www.worldwidewords.org/qa/qa-swe1.htm [worldwidewords.org] http://www.randomhouse.com/wotd/index.pperl?date=20010214 [randomhouse.com]
  • Re:Biases (Score:3, Informative)

    by PReDiToR ( 687141 ) on Monday October 05, 2009 @08:50PM (#29652283) Homepage Journal
    Lemmings don't commit suicide [snopes.com].

    Making the world a brighter place, one myth at a time.
    No offence.

The optimum committee has no members. -- Norman Augustine

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