Monday, January 04, 2010
As has been widely reported, the U.S. Federal Trade Commission (FTC) issued changes to its Guides Concerning the Use of Endorsements and Testimonials in Advertising, the first in over 30 years.
The controversial announcement focused mostly on new media, including blogs and social networks, and the issue of “material connections.” Simply put, any payments or free products exchanging hands between advertisers and endorsers must be disclosed to consumers. According to the FTC, “the post of a blogger who receives cash or in-kind payment to review a product is considered an endorsement.”
The FTC said that they will only pursue action in rare cases, but in those rare cases where there is a complaint and an investigation there have been reports that fines could reach as much as $11,000.
Criticisms of the new guidelines were widespread, with concerns ranging from worries that the FTC had underestimated the sheer scale of this task to the fact that mainstream journalists are exempt.
However, many people cheered the FTC’s actions. And I must agree.
As Bob Dylan once uttered, “The Times They Are A-Changin'.” The announcement by the FTC seems to give bloggers and their medium a new level of credibility that might not have been present previously.
An editorial in PRWeek reiterated, “but what the FTC made clear is that the social media landscape is no longer an ‘other.’ Bloggers are no longer a novelty, no longer a separate group. They must play by the same rules as others.”
In addition, with mainstream journalists increasingly going to blogs to research issues and source facts, and quoting from an organization’s blog or Twitter feed, transparency from blogs is a must. In fact, transparency has now replaced objectivity as the key news value.
Of course it’s naïve to think that there won’t always be hoaxes, misleading information, or outright deception on the Internet, or that the steps by the FTC are an immediate or permanent fix. It’s a step in the right direction, though, and it’s a way to continue to enhance the bond of trust that should be present with writers and their readers.
Blogs have increasing become a viable news source and this regulation will certainly enhance their credibility in the long term. This creates a new set of opportunities and challenges for businesses of all shapes and sizes.
The guidelines went into effect on December 1 and it will be interesting to observe if there are increased uses of italicized print at the end of posts.
Oh, and before I forget…..
DISCLAIMER: No goods or services were accepted for the development of this column.
Kristen Griffin
kgriffin@greentarget.net