On December 1st, the Federal Trade Commission's new Guides Concerning the Use of Endorsements and Testimonials in Advertising went into effect, changing the way that relationship disclosures are handled for bloggers, social media marketers, advertisers and celebrity endorsements. So far the new guidelines have been largely treated like a Maginot Line on the part of bloggers, with little compliance and doubts about the Commission's ability to enforce the new rules broadly.
Because the guideline has 81 pages, I've touched only briefly on points significant to bloggers, but it would be in the best interest of anyone involved in blogging, advertising or social media marketing to read it entirely, along with the 12 pages of revisions. The definition of an 'endorsement' is very broad and open to the discretion and interpretation of the Commission or investigating agency.
The new guidelines set forth by the consumer watchdog agency are designed to increase transparency in the relationship between advertisers and bloggers. From now on any material connection or relationship between them needs to be revealed by both parties, even if it was facilitated by a third party (agent, affiliate, marketing group, etc.). Material connection refers to monetary compensation, gratis review samples, additional free products/gifts, share of profits, or anything of value. Relationship refers to business, client, affiliate or personal.
If a blogger receives a free book as a review copy this should be disclosed as a material connection, regardless of whether the review is positive or negative. It is not necessary to have an expectation of a positive review in order for the review to be considered an endorsement. All that matters is that some 'thing' of value was exchanged between the two parties. The blogger needs to "clearly and conspicuously" disclose the advertiser as a 'sponsor' and define any compensation received.
Article comments
1 - FCEtier
I haven't clicked through to all the links you posted; was there any indication of how soon enforcement will begin?
A thorough and insightful summary. Thanks!
2 - Hilary JM Topper
What gets me about this is that reporters and journalists have gotten free stuff for years and years now and they never had to disclose that they received a review copy. Why is the FTC picking on us bloggers?
3 - Silas Kain
What's good for bloggers should be good for politicians. Sounds to me like the FTC wants to rein in the bloggers while the politicians act like drunken sailors on shore leave. We need a revolution.
4 - Glenn Contrarian
And exactly what is wrong with a drunken sailor on shore leave?
Glenn Contrarian, USN (Ret.)
5 - Dawn
I have to agree w/ Hilary JM Topper's comment on journalists not getting slapped w/ the same blanket ruling decades ago. Oh well, I guess we should all have expected this would happen at some point.
You can't have an explosion of positive activity w/ a new concept and go unnoticed - file it under the same old mountain wisdom of "Nobody beats a dead horse (or dog, depending on the area you grew up!)." If you're having success, someone is going to notice and start poking around to latch on to your coattails.
Chip, great article! I'm bookmarking it for further research & reference.
~ Dawn
6 - Silas Kain
Absolutely nothing, Glenn. There was a time when I found seamen on shore leave quite invigorating. Since you are USN retired, I am sure you know how a sailor on shore leave needs to sow his wild oats when off the seas.
Out of respect for your service to this country I will change the the line to read:
while the politicians act like auditioning hookers at the Bunny Ranch. How's dat?
7 - Glenn Contrarian
Silas -
I'm sorry - I meant that retort as tongue-in-cheek, because there are few things more useless than a drunken sailor on liberty. Been there, done that, had to clean up afterwards....
8 - Silas Kain
...because there are few things more useless than a drunken sailor on liberty
True. There is Sarah Palin.
9 - Mark Buckingham
Here are a few suggestions on how to cover yourself, compliance-wise.
10 - Ruvy
Thanks Geek Girl!
Like Dawn, I'm bookmarking this for future reference.
11 - Daniel Alexander
This is interesting, as consumer I don't hold free samples or paid reviews against the reviewer.
As long as the review is truthful and helpful to make an informed purchasing decision, it's a good review.