The Federal Trade Commission announced on October 5, 2009 that it plans to regulate blogging and other comments on the internet by requiring bloggers to disclose payments for reviews and other financial relationships.http://www.newsday.com/business/monday-national-business-briefs-1.1502786
The FTC will revise rules regarding endorsements and testimonials in advertising that have existed since 1980. Advertisers' use of platforms such as blogging, Facebook and Twitter to promote their products have led the FTC to make changes in disclosure requirements.http://www.nytimes.com/2009/10/06/business/media/06adco.html?_r=1
Beginning December 1, 2009 bloggers and users of social media who review products must disclose all connections with advertisers. Free products and even cash payments are frequently given to bloggers and other reviewers without any disclosure to the readers. Celebrities must now disclose any relationship to companies whose products they promote, whether the medium be traditional, such as television, or new, such as Twitter. The new rules aim to bring the regulation of traditional and new media closer together.http://www.nytimes.com/2009/10/06/business/media/06adco.html?_r=1
An Emotional (If Not Entirely Accurate) Response To The New FTC Rules
References
Fast Facts
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Date announced
October 5, 2009
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Date effective
December 1, 2009
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Government agency
Federal Trade Commission (FTC)
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New rule
Individuals who promote products, whether through the internet, or in traditional media, must disclose financial relationships with the manufacturers, including the receipt of free products.
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Fact:
An additional change, applicable to all media, aims to prevent advertisers to tout results of product use that are different than typical results
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Fact:
Violations could result in fines up to $11,000
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Fact:
The FTC admits that it is impractical to enforce the rules everywhere, but instead is focusing on education
