[Infowarrior] - FTC: Bloggers must disclose payments for reviews

[Richard Forno]

  FTC: Bloggers must disclose payments for reviews

FTC: Bloggers must disclose any freebies or payments they get for  
writing product reviews
	• By Deborah Yao, AP Business Writer
	• On Monday October 5, 2009, 2:47 pm EDT

http://finance.yahoo.com/news/FTC-Bloggers-must-disclose-apf-468964868.html?x=0&.v=2

The Federal Trade Commission will try to regulate blogging for the  
first time, requiring writers on the Web to clearly disclose any  
freebies or payments they get from companies for reviewing their  
products.
The FTC said Monday its commissioners voted 4-0 to approve the final  
Web guidelines, which had been expected. Violating the rules, which  
take effect Dec. 1, could bring fines up to $11,000 per violation.  
Bloggers or advertisers also could face injunctions and be ordered to  
reimburse consumers for financial losses stemming from inappropriate  
product reviews.

The commission stopped short of specifying how bloggers must disclose  
conflicts of interest. Rich Cleland, assistant director of the FTC's  
advertising practices division, said the disclosure must be "clear and  
conspicuous," no matter what form it will take.

Bloggers have long praised or panned products and services online. But  
what some consumers might not know is that many companies pay  
reviewers for their write-ups or give them free products such as toys  
or computers or trips to Disneyland. In contrast, at traditional  
journalism outlets, products borrowed for reviews generally have to be  
returned.

Before the FTC gave notice last November it was going to regulate such  
endorsements, blogs varied in the level of disclosures about these  
potential conflicts of interest.

The FTC's proposal made many bloggers anxious. They said the scrutiny  
would make them nervous about posting even innocent comments.

To placate such fears, Cleland said the FTC will more likely go after  
an advertiser instead of a blogger for violations. The exception would  
be a blogger who runs a "substantial" operation that violates FTC  
rules and already received a warning, he said.

Existing FTC rules already banned deceptive and unfair business  
practices. The final guidelines aim to clarify the law for the vast  
world of blogging. Not since 1980 had the commission revised its  
guidelines on endorsements and testimonials.

Cleland said a blogger who receives a freebie without the advertiser  
knowing would not violate FTC guidelines. For example, someone who  
gets a free bag of dog food as part of a promotion from a pet shop  
wouldn't violate FTC guidelines if he writes about the product on his  
blog.

Blogger Linsey Krolik said she's always disclosed any freebies she's  
received on products she writes about, but has stepped up her efforts  
since last fall. She said she adds a notice at the end of a post,  
"very clear in italics or bold or something -- this is the deal. It's  
not kind of buried."