The FTC Has Laid Down the Law on Blogger Endorsements

This morning, the Federal Trade Commission released the “Final Guides Governing Endorsements, Testimonials” which institutes specific requirements regarding disclosure of experience and/or affiliations certain individuals (such as bloggers) have with companies they recommend or otherwise represent. What this basically means is that now, if you mention a company or product for the purpose of endorsement, recommendation, or promotion, you must reveal ANY relationship you have with that company which influenced your opinion or facilitated/arranged for you to receive the material for your article. Did they pay you? Were there incentives involved? Did you get things you weren’t required to purchase? You have to tell. In a nutshell, this is what the FTC guidelines now state (according to FTC File No. P034520):

• If an advertiser presents consumer opinions and/or testimonials “will be required to clearly disclose the results that consumers can generally expect.” So, in other words – no more of those ads with people GUSHING about how wonderful a product is if that’s not TYPICALLY the experience that each individual can expect out of that particular product or service. AND NO MORE ‘results may vary’ or ‘results not typical’ disclaimers. SORRY! :)

• If you received money or free products and/or services from a company you’re featuring on your blog, you’ve gotten disclose that. Many bloggers already have this practice in place for their reviews, but those who do not – you’ve now gotten called out to bat in that ballgame. Your readers MUST be aware of any and all “material connections” you have with the companies you represent. {I guess this goes to show just exactly how influential word-of-mouth really is in the blogging community! I feel important. Whoo hoo. We’re now regulated by the FTC. Um, boo.} Very specifically, “the post of a blogger who receives cash or in-kind payment to review a product is considered an endorsement” and allllll that wonderful information about WHY you’re featuring that product or service MUST be disclosed. On the flip side, if that company features YOUR experience with their product in any type of advertising or promo campaign, they also have to disclose “the connection” they have with you (information about what you received in return for the review). Deceptive testimonials = a BIG no=no. In other words, if you make false or misleading claims, you’re in trouble with the FTC now, not just other bloggers talking smack on their blogs about how you glorified a crappy product. Fun, huh?

• The new revisions aren’t just limited to bloggers, of course. “Celebrity endorsers also are addressed in the revised Guides.” Honestly, I think anyone who is dumb enough to believe anyone famous is promoting a product for free should be required to undergo a mental evaluation. I mean, celebs getting paid for endorsements – well, duh… that goes without saying {hence the reason I didn’t get upset with Ashton Kutcher over my horrible experience with the touchscreen CoolPix S230 by Nikon!}

• The one thing that makes this not such a big deal to bloggers is that the guidelines are pretty much just an accompaniment to the actual Federal Trade Commission Act itself and don’t really hold any legal power in and of themselves. Basically what that means is that if someone is suspected – or charged – with violating the FTC Act by using or providing deceptive testimonials or endorsements, “the Commission would have the burden of proving that the challenged conduct violates the FTC Act.” So, in all actuality, these aren’t even amendments to the Act – they are just a set of revisions that basically clarify what the initial act intended to say. That being said, the FTC seems pretty bent over the blogging community issuing out lies just to cop free stuff, so I’d just follow the rules if I were you. :) Honesty is always the best policy anyway, right?!

So, how do YOU feel about the changes? And more than that – how does the fact that these changes are even necessary make you view the power of the blogging community over consumer affairs differently? Did you realize just how much influence virtual word-of-mouth really is? Do you think the revisions to the FTC Act will have an impact on blogger review integrity? Tell me what you think – leave me a comment!

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. The FTC’s Web site provides free information on a variety of consumer topics.

MEDIA CONTACT: Betsy Lordan, Office of Public Affairs – (202) 326-3707

STAFF CONTACT: Richard Cleland, Bureau of Consumer Protection – (202) 326-3088