FTC Approves New Guidelines for Bloggers

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The Federal Trade Commission approved final revisions to guidelines on the use of endorsements and testimonials in advertising, which address endorsements by consumers, experts, organizations, and celebrities, as well as the disclosure of important c

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The Federal Trade Commission approved final revisions to guidelines on 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.
Bloggers who endorse a product or service must disclose the material connections they share with the seller of the product or service. The revised guidelines 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.




"We were expecting the FTC to revise its guidelines this year. We have been advising clients to disclose their relationship when they are blogging," Ricardo Lopes, Managing Director of Marketing Outsourcers, said during a session at Search Marketing Expo East taking place in New York this week. Because our clients are primarily in the B2B space, it is particularly important that they protect themselves from potential liability, added Mr. Lopes.




As expected, the blogosphere and media commentators have been buzzing with opinions on what the new guidelines will mean for bloggers and whether the rules are enforceable. Enforcement is a key issue because the FTC has dominion over US based bloggers only. The onus of the FTC s rules fall squarely on the blogger. If a blogger breaks the rules, the blogger has to pay the fine, which could be $11,000 per offense. A gray area that needs clarification is how the rules apply to corporate bloggers " those who write on behalf of a specific company. Presumably, corporate bloggers will need to disclose their relationship and the nature of their endorsement. This is why Mr. Lopes is adamant in his advice to corporate clients to pay attention to the new guidelines. While the FTC did not specify how disclosure must take place 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.

For more information: www.ftc.gov