FTC New Guidelines Impose Fines for Bloggers Failing to Disclose Paid Endorsements
The Federal Trade Commission has published a change in guidelines that will require bloggers receiving products or payment in exchange for reviews disclose the relationship according to the press release on their website. Along with bloggers, the change effects celebrity endorsements and testimonials in advertising.
From the press release: "the post of a blogger who receives cash or in-kind payment to review a product is considered an endorsement. Thus, bloggers who make an endorsement must disclose the material connections they share with the seller of the product or service."
In the name of "Protecting America's Consumers", as the FTC proudly proclaims on their website, bloggers are subject to a $11,000 fine per post if failing to properly disclose advertising relationships. The attached Guidelines run eighty-one pages (81!) in pdf format consisting of complex legal language.
Placing the same rules on bloggers as advertising designed by marketing professionals and celebrity endorsements is overkill at best. For every high profile blog with income and expertize necessary to navigate such legislation, there are thousands of bloggers typing away a few hours a night bleary eyed after working a full time job. For those of us who choose to use our hobby to make a humble second income should not be under fear of investigation by a federal agency.
I am a private citizen paying my own domain registration and hosting costs. Any rule restricting what I publish smacks of censorship. My relationship with advertisers and readers is between myself. I choose to disclose my status as a blogger who excepts compensation.
It sounds dramatic, however, the burden would be primarily placed on small blogs. Even bloggers who do not accept products or cash from companies would have to think twice before reviewing items. Would a non-paid post have to be labeled as such in order to avoid investigation? I question if the guidelines are even enforceable. I imagine cyber-agents in black suits surfing blogs for signs a blogger might have been offered a coupon for a free box of granola bars in exchange for a write up.
The intention behind "Guides Concerning the Use of Endorsements and Testimonials in Advertising" is to protect consumers from deceptive advertising practices. Identifying as a Libertarian, I reject the concept which places the government in the place of protecting people from making bad choices. If a person makes a choice based on an unverified claim on a website, they are a foolish. Worse, the guidelines can only muddy the waters for the public. If the FTC tells consumers they are protected from unfair and misleading statements on blogs, consumers are inclined to believe it. Only bloggers based in America are subject to the rules.
If the consumers being protected cannot distinguish bad information from good information, how can we expect them to know the sites they visit are hosted in another country free from regulation?
Although I am against government oversight in regard to advertising on blogs, I am for transparency on the internet. Advertisers and bloggers benefit from disclosing relationships. My sidebar features a disclosure policy. I have no problem discussing my choice to accept compensation. Bloggers should practice integrity in every interaction. Readers are responsible to use good judgment. Freedom and honestly is the only way for online relationships to thrive.
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