For the first time since 1980 the Federal Trade Commission (FTC) has revised its guidelines on testimonials and endorsements. Specifically this amendment now includes bloggers and that bloggers must disclose whenever they are compensated either with a free product (freebie) or actual monetary compensation for doing a product review. It doesn’t matter if the product review is favorable or unfavorable you must include the endorsement.
IZEA with strong ethics in the advertiser and blogging community already complies with these standards with its SocialSpark and PayPerPost offerings, other companies have to start complying, but what is unknown is how systems such as PayU2Blog will handle, as the system currently requires no notification at all that a post was sponsored. Many opportunities on other networks also request that no notification about sponsored post be mentioned as well.
Bloggers can be liable for up to an $11,000 fine for being caught promoting a product without disclosure that they were paid to endorse the product. So make sure whenever you are accepting blog opportunities that you are complying with these new FTC rules which will go into effect on December 1st 2009.
For more information you can read the full MSNBC Article.
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Tags: blog disclosure, blog post disclosure, Bloggers Must Disclose, bloggers ruling by ftc, Blogging Fines, disclose paid reviews, Disclosure Policies, Dislosure, Fines Blogging, forced disclosure, ftc on bloggers, ftc ruling, izea disclosure, paid posts, product disclosure, socialspark disclosure, sponsored blog posts
October 5th, 2009 at 3:14 pm
Both as a blogger and a consumer, I think this is a fair move. Readers should be able to trust what bloggers write and *all* bloggers might not be 100% honest if they are being paid for a product review.
I wonder, is this only for bloggers who live in the US? I guess it is, since it’s FTC rules.
… what about affiliate links in blog posts, they don’t belong under this new rule, right?
Klaus @ TechPatio´s last blog ..Usenet Access Discontinued For Verizon And AT&T – Best Usenet Server Recommendation
[Reply]
October 5th, 2009 at 3:15 pm
Hey there J,
I wonder if the new regulation takes note of site wide disclosure. IZEA does do a great job of having a disclosure badge be mandatory for each sponsored posts but I have seen other companies ask that no disclosure be mentioned or a site wide disclosure badge be present. I’ll keep an eye out to assure that I’m covered and not breaking any laws. Thanks.
Metallman´s last blog ..…And Pre-Labor Begins
[Reply]
October 5th, 2009 at 4:47 pm
It would be interesting to see what companies are going to do because like you said payu2blog doesn’t even allow you to run notices saying that the post was a paid post. Greg Ellison
Greg Ellison´s last blog ..Huge Fat Puppy Picture
[Reply]
October 6th, 2009 at 8:35 am
PayU2Blog released an announcement saying the FTC ruling doesn’t apply to PayU2Blog where you just include a link without endorsing a product. It is much like a Text Link Ad type program, you are not endorsing or promoting a product, just including a link. They do require you to mention that you received a free product or were compensated when doing actual product reviews or endorsements.
[Reply]
October 6th, 2009 at 12:20 am
So will it also include paying taxes therefore?
elmot ´s last blog ..Do They Have the Balls To Do It?
[Reply]
October 7th, 2009 at 7:25 pm
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