Whether you are a person who frequents blogs on the Internet, you own a personal blog, or you even write articles on websites like this one, you've probably heard about the FTC's intention to more closely regulate such things by now.
Established in 1914 by the Federal Trade Commission Act to promote consumer protection and combat anti-competitive practices, the Federal Trade Commission is the government agency charged with making sure all is fair in love and trade as it relates to the American consumer.
More recently however, the FTC has represented three letters striking fear into the hearts and minds of bloggers everywhere, as the agency has begun to take steps towards regulating the wild, wild west world of the blogosphere.
Specifically, as of December 2009, the FTC will begin requiring full disclosure of any payments made to bloggers in exchange for product endorsements.
Such payments would include not only monetary compensation, but also the products bloggers often receive for review purposes — which in theory could mean anything from cars, trips, and the like, to the CDs, DVDs, and books thousands of bloggers routinely write about every day at sites such as Blogcritics Magazine.
So what does this mean for people who review music CDs and such on the internet? Perhaps a brief history lesson will help put this into the proper perspective.
Promotional albums — or "promos" in the industry vernacular — have in fact been part of the way business is done by the music industry for a very long time now. In addition to the thousands of writers who receive them for review purposes, they are routinely sent out to radio programmers and DJs as well as what is left of the music retail community.
They are not only used to help determine which new releases get written about, but also what gets played on the radio, and what gets pushed in record shops through things like instore play.
They have also from time to time been used as an accepted form of currency in the record business, which has produced its own fair share of scandals over the years.
Although I wasn't actually around to witness it first hand at the time, I am old enough to remember the original payola scandals of the fifties and sixties as a student of music history.
Article comments
1 - Matthew T. Sussman
This FTC ruling will target the correct demographic of advertorial entrepreneurs, making a livin' off shillin' and pimpin'.
2 - Jet Gardner
You don't tug on Superman's Cape,
You don't spit into the wind,
You don't pull the mask off the ol' Lone Ranger,
and you don't mess around with... the FTC?
Good read Glen
With all the feather's flying around it's a wonder any of us can read our monitors
:)
3 - Greg Barbrick
Nice work Glen, but I think I remember someone taking a trip to the New Music Seminar on the back of some cleans. Ring any bells?
4 - Glen Boyd
The fact that I saw, and yes even took advantage of some of these practices first hand at the time as a lowly music retailer, is something that I think allows me a rather unique perspective to write about it.
By the way, did I mention that you have a big mouth?
-Glen
5 - Glen Boyd
Speaking of ringing a few bells...
6 - Jet Gardner
Another point to consider is just who determines the value of those promotional materials.
I've got a Trans Siberian Orchestra review coming up in which I'm only being provided with 5 songs of a 26 track double-CD tp base it on.
I've gotten DVDs with scenes suddenly scrambled or left out completely.
CDs with gaps in hit tracks
Books with only partial chapters
Items that come without the "street" materials or packaging included.
The vast majority of the "promo" copies have come in perfect shape, put on occasion they ship us "factory 2nd's" to review rather than throw them away expecting us not complain...
You get what you pay for... but do you get taxed or regulated on that basis?
Who determines the fair value?
7 - Greg Barbrick
LOL :-)
Remember TK's motto: "I'm no homo, but I'll get on my knees for a promo"
8 - Jet Gardner
Beggin my pardon of course
9 - Glen Boyd
An item such as you describe would have to be called worthless in terms of having any monetary value Jet.
In the case of boxed sets and the like, record companies these days will most often opt for sending out samplers rather than the pricier deluxe boxes. There are also instances, where the label or PR firm will send out the CD in a slip case, minus the artwork -- again rendering the item useless as a sellable commodity. Giving reviewers access to a free download is also becoming much more common.
There are however rare exceptions. I've seen the promo double CD sampler of the Beatles remasters (like the one I received) for example fetching prices of about $200. on eBay. However, this is the Beatles after all...
The bottom line is promo CDs are for the most part without monetary value, except maybe to a few collectors.
I just don't see the FTC going after bloggers who get promo CDs for review purposes here.
Thanks for the comment.
-Glen
10 - Jet Gardner
This could inspire whole episodes of "Antiques Road Show" in which experts determine if a promotional item is a collector's item or useless garbage.
Mr. Sussman's sports section brought up an interesting memory of how football players started wearing panty hose to keep their legs warm.
"Broadway" Joe Namath as a joke promoted a certain brand of panty hose as a juke on TV commercials and the government took that as an endorsement and said he actually had to wear the damned things or be fined for falsely endorsing a product he didn't use.
Other football players took up the cause and found the product actually was useful for them.
11 - Donald Gibson
Did I mention that I have a small but impressive collection of Leonard Cohen promo CD singles and various other memorabilia? You probably knew that already, though...
12 - Glen Boyd
You think that's something Gibson? One of these days I'll have to show you my Springsteen collection....
-Glen
13 - Jet Gardner
Oh bpbpbpbpbp I've got white label radiostation 45s of Patsy Cline that were salvaged when the place went out of business and they nearly threw away because no one wanted them??????
14 - Glen Boyd
I used to have a record label employee living next door to me in the seventies, who would throw his extras in the garbage behind the apartment building. Garbage day was never so much fun as it was then.
-Glen
15 - Jet Gardner
Mom always liked you best
16 - Jet Gardner
I hope Roger doesn't read this; I'm only supposed to comment on my own articles :(
17 - roger nowosielski
You just got caught, Jet, for trespassing. And the penalty is . . . Well, name your own poison.
Hello to you.
18 - Jet Gardner
It all started when this shapely girl picked up a 1922-s dime off the ground after putting what she "claimed" was a tiny little scratch in the right quarterpanel of a pristine 1972 Pontiac GTO, but was actually a dent big enough to be seen from satelite photos.
19 - Glen Boyd
Appreciate the comments guys, though I have to admit I have no idea what those last couple are about.
-Glen
20 - R.P.M.
And streak. Glen first.
I worked in DC, for the govt, in the Hart Building, if you have ever been to DC or any of big govt. too many kids on the staff, we feel left out syndrome places - FBI and Dept. of Education included, you would know that DC is run by mostly kids. If you are over 30, you are either a congressman or someone who has no desire to get a real job as Cap Hill wages pay almost nothing and only Chief's of Staff get paid (that I won't even get into as some make the same as the Congressman - joke city since you have a whip who tells you how and why to vote everyday that Homer Simpson could do the job, just ask Cynthia McKinney and her run...a woman has had NO JOB STILL other than Congress and it showed, but I digress).
The FTC doesn't care this is just something some 24 year old cooked up snuck through committee and got conf. and joint conf. to sign off to stop porn peddlers and probably some other logic and NOT people getting a free download (that you can mostly get off of torrents), why don't they step up and do something about that? Oh wait they can't and if you don't live in the USA this doesn't concern you.
Ok next.
Like I said before blogging is a counter culture way for people to vent. The whole point is to raise a little cain now and again. If that's not you fine, but plenty gets said on the net. Why not focus on the fact that hundreds of thousands of kids are sold as slaves for sex in the US and around the world. Check out UNICEF for more on that and less on this.
Nobody puts Blogcritics in the corner, to quote Mel Gibson in one of his pre-I hate jews, I got a dui b/c of them rants or other stuff, "Stick your head between your own legs and kiss your own arse..." That is my take to the FTC. If you feel that isn't enough get a group together, find people with like thinking and write them as many letters and emails as you possibly can. It IS their job to answer each and every one. If they don't they get a pink slip and writing a response is pretty damned annoying as is using the franking machine to fake a real signature of a supposed care tax payer salary Govt. worker.
21 - Glen Boyd
Not sure I really got the meaning of all of that R.P.M., but if you are saying this really isn't a big deal in the grand scheme of things, I agree...at least I think I do.
If I'm reading things correctly, the FTC isn't really interested in going after bloggers who mostly write for free, but might get an occasional free CD out of the deal. Obviously, there are bigger fish to fry out there in the real world.
As I said, I'm not sure I really get your point here, but I do thank you for making it.
-Glen
22 - Jeff from Earvolution
I worked as a consumer protection attorney for a couple years at FTC HQ in DC. My concern is that I have in fact seen, in other enforcement areas, the FTC absolutely pick on little fish (with no or limited resources to respond) in order to make a headline. The FTC is often looking to deter. So they could absolutely grab some headlines "Blogger busted for payola" in order to send a broad message to the entire "market."
But, let's use the music blog as an example since it is near and dear to both our hearts. We recieve CDs but in no way is there a guarantee of a review or of a favorable review. So there is no "exchange" of value for something. In that sense it'd be a real stretch for them to do go after someone receiving some CDs or even some concert tickets.
If anyone does get a letter from the FTC about their blogging feel free to contact me - I'm still a laywer - and will help you figure out how to respond.
23 - KELLIKO1
What does it matter that bloggers be compensated for their time and words?
It shouldn't be the governments job to take work from anyone (imo) !!!
24 - KELLIKO1
This is my opinion:
By law - all a blogger has to do is place a disclaimer on their comments that says (in my opinion), you cannot get in trouble for your opinion - unless this isn't America anymore ?!!!