Who Invited the FTC into My Bed?

{photo via here::special thanx}

You've heard about them. You know...Them...The rumours floating around on how the Federal Trade Commission (FTC) has become bedfellows with those of us in the blogosphere (like it or not).  What rumor, and when they get in bed with me?  Here's the scoop.  After twenty-nine years, last October 2009, the FTC has effected several new guidelines that will forever guide all of us 'professional' and/or serious bloggers.  The guidelines concerns "...the Use of Endorsements and Testimonials in Advertising, which address endorsements by consumers, experts, organizations, and celebrities, as well as the disclosure of important connections between advertisers and endorsers.who receive advertising testimonials, endorsements and/or sponsorships".   And...rumor has it that there is some astronomical fine attached for those who are noncompliant...
Whoa!  What was that!

Here is the simple 'keeping it real' version:

Those *lovely* client testimonials that are posted on our blog/web sites, must be a reflection of what a client will  'typically' experience with your product or service.  No more use of the infamous fine printed disclaimer of, "results not typical"

"Material connections" (ie, payment for or receipt of free products/services) between, you - the blogger any product/person/service that is endorsed (on your blog), but, not expected by the 'listening' consumer - must be disclosed.  The guideline reads, "...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".

Fortunate to have some celebrity ties?  Well, listen up.  Because this is what the guidelines have to say about the use of celebrity testimonials/endorsements.  The "...celebrities have a duty to disclose their relationships with advertisers when making endorsements outside the context of traditional ads, such as on talk shows or in social media". 

Richard Cleland - Assistant Director of Advertising Practices at the FTC, clarified FTC’s expectations for disclosure, as it relates to bloggers as - “the FTC’s main criteria is the degree of relationship between the advertiser and the blogger. . .If there’s an expectation that you’re going to write a positive review, then there should be a disclosure.”  Further, he had this to say about receiving sample products versus being paid for a review:

“That’s going to depend on the circumstances. If we’re talking about getting one free product or something sent to you and you happen to write about it on your blog, that’s not the type of relationship that has to be disclosed. But if you’re part of a network and you’re consistently receiving products to test and blog about, then that raises the implication that these gifts are quid pro quo and that’s why you’re writing the positive reviews.”

You might be asking yourself, does this new guideline effect my Facebook and Twitter presence?

What About Twitter and Facebook?

The guidelines hold true for bloggers who receive paid endorsements (read: tweets) and/or Facebook 'Fans' of products/services and then share those fan pages or/and tweets with friends.  Safe rule of thumb - whenever their is some type of payment or/and compensation (actual and/or in-kind), the 'guideline' flag should go up.  Here is how the guideline may be applied to use on Facebook:

“[A] celebrity or other prominent figure with loads of friends on Facebook receives free hotel stays from Hotel Chain X in exchange for running Hotel Chain X ads on his or her blog. If that person then signs up as a Facebook fan of Hotel Chain X–which, remember, could mean that the person’s name can show up for his or her Facebook friends alongside Hotel Chain X display ads on the social network–he or she could be held liable by the FTC.” (info via here:: special thanx)

As for Twitter, the expectation is that, somewhere in that 140 character limit, you must include your disclosure statement.  In other words, "if you can't make the disclosure, you can't make the ad"

How is the FTC going to keep track of ALL of the Blogs in the blogosphere?
Great question!  When the guidelines were first made public, through a series of interviews, Cleland offerred clarification of the guidelines; as well as, an explanation of how the guidelines are to be applied and monitored.  In one such interview, Cleland stated that the education, of the individuals/companies that is effected by these guidelines, of what is expected of them as it relates to the new guidelines is primary and key.  He indicated that "the FTC would be 'looking primarily at the advertisers to determine how the relationship exist'".   In an interview with CNN,  “Richard Cleland . . . admits there will be no new team to monitor all the blogs, and that enforcing these guidelines would be a ‘game of whack-a-mole’ given the numbers involved... The new guidelines are viewed as more of an educational tool than any kind of requirement, and geared at advertisers more than bloggers. If numerous complaints are filed regarding a blog, the FTC is likely to investigate that the advertiser has properly advised the blogger of these guidelines.”
Further,  Cleland goes on to say, “…in the bigger picture, we think that we have a reason to believe that if bloggers understand the circumstances under which a disclosure should be made, that they’ll be able to make the disclosure. Right now we’re trying to focus on education.”


Do you have to go back to previous posts and add a disclosure for gifts/payments received prior to this new guideline?  One suggestion offerred by Lisa Stone, founder of Blogher.com, is that "...you update your “About" page with your blog policy about payments and review your blog for the current year and disclose any gifts or payments. For previous years, I think you can disclose on your “About” page the date on which you began your disclosure practices. We are not your lawyer, but as a a general practice we recommend that bloggers disclose any kind of payment at the top of every post written because of a payment of cash, goods, or services.”

So what does this new 'partnership' offer as a penalty for noncompliance? 

Can You Spare $11,000 Dollars?

What's to the (rumor?) of the $11,000 per violation for noncompliance?  Trusted news sources were reported  that bloggers who don’t disclose payment will be fined $11,000 per violation.  The updated FTC regulations don’t mention an $11,000 fine at all. None of the original articles with erroneous information had been updated to reflect the lack of this exhorbitant fee. 
To the credit of the majority of bloggers - we are doing the right thing already.  That being said, the level of vigilance lies in the hands of each blogger to remain within the bounds of the regulation guidelines.  The rest is relatively simple.  Write your own disclosure policy/statement and post it clearly on your blog. Need help in writing that disclosure.  This site will assist you in generating one.

Has the new FTC regulation effected the way that you maintain your blog?  How so?  Have you included a disclosure statement in your blog?  Let talk about it...

Full Disclosure

(pic via here::special thanx)

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(I tried to say it as eloquent and straight-forward as he, but it just didn't work.  So... why reinvent the wheel?  Thanks Andy!)

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