The Federal Trade Commission has approved new guidelines that make it mandatory for bloggers to disclose any payments or free products they receive in exchange for posting product reviews. Failing to abide by these guidelines will result in fines up to $11,000 per offense.
These new rules amend an FTC policy that was last updated in 1980.
The FTC announcement states:
The revised Guides also add new examples to illustrate the long standing principle that “material connections” (sometimes payments or free products) between advertisers and endorsers – connections that consumers would not expect – must be disclosed. These examples address what constitutes an endorsement when the message is conveyed by bloggers or other “word-of-mouth” marketers. The revised Guides specify that while decisions will be reached on a case-by-case basis, 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. Likewise, if a company refers in an advertisement to the findings of a research organization that conducted research sponsored by the company, the advertisement must disclose the connection between the advertiser and the research organization. And a paid endorsement – like any other advertisement – is deceptive if it makes false or misleading claims.
If you’re not keen on fostering transparency for its own sake, perhaps the threat of an $11,000 fine might help you reconsider.
What are your thoughts on the FTC’s new guidelines?
Photo Credit: Foxtongue
