From time to time I do sponsored posts. You may have seen my advertising policy button in the right column – and I always put such posts in a special category that is called Paid Advertising, which you see in the left column. As such, I think I have made it clear that such posts are compensated, and that I am speaking as a paid reviewer of such of the company or product. I don’t say anything in such posts that I do not believe to be true. I don’t claim to use products or services I haven’t used. I think that is a simple matter of responsibility.

But IÂ’m still troubled by this new policy by the FTC.

The Federal Trade Commission is taking a tougher line on bloggers who accept cash or gifts to tout a company's products or services.
Under revised rules announced Monday, the FTC will require bloggers and celebrities to clearly state when they receive cash or "payment in kind" for endorsing a company's products or services.

The changes, adopted on a 4-0 vote, are the first revisions to federal guidelines on endorsements and testimonial advertising since 1980 and the first to target bloggers.

Connections between advertisers and endorsers must be disclosed once the revised guidelines take effect on Dec. 1. The FTC said the stricter disclosure requirement will apply to comments on talk shows, blog posts and on social media as well as in traditional advertisements.

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Advertisers and endorsers who fail to disclose material connections, or who make false, misleading or unsubstantiated claims may be subject to fines of $11,000 per violation. The FTC didn't set a specific dollar threshold; instead, it called for disclosure whenever a reward is large enough that it might affect the credibility of the endorsement itself.

Now hereÂ’s where I have a problem. The FTC isnÂ’t clear what such disclosure has to look like. Are my posted policy and special category sufficient? And at what point is my compensation sufficiently substantial to trigger the FTC regulations? And does a post in which I simply note the existence of a company and an explanation of their services an endorsement, or is it something else?
My fear? That the rules are so vague that bloggers will find themselves in trouble without meaning to violate any rules. So while I donÂ’t have a theoretical problem with disclosure rules, I remain troubled by these.

Posted by: Greg at 10:55 AM | Comments (6) | Add Comment
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