Bloggers now have up to 11,000 reasons to disclose when they are being paid to review products.
The FTC has updated its Guides Concerning the Use of Endorsements and Testimonials in Advertising for the first time since 1980, and among the changes, a requirement that “bloggers who make an endorsement must disclose the material connections they share with the seller of the product or service.” Fines for violating the new rule will run up to $11,000 per post.
Some more details from the FTC’s announcement:
“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.”
Beyond straight up pay-per-post systems like Izea, it the new rules would seemingly apply to any situation where something of value changes hands between advertiser and blogger. For example, General Mills and Ford Fiesta bloggers would have to disclose the relationship they have with the advertiser.
Certainly, it seems like this is an update that's time has come. While most well-run social media programs already include appropriate disclosure, there’s still no shortage of unscrupulous marketers using deceptive practices to sell products. Now, with the threat of serious fines, those who look to push the boundaries of ethical blogging will be doing so at their own risk.