FTC To Fine Bloggers Who Don't Disclose Freebies and Paid Reviews

By Jeralyn, Section Blog Related
Posted on Mon Oct 05, 2009 at 12:46:57 PM EST
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The FTC has changed its rules for the first time since 1980. Indpeendent bloggers who fail to disclose paid reviews or freebies will be fined up to $11,000.

From the FTC press release today:

"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.

[More...]

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. Thus, bloggers who make an endorsement must disclose the material connections they share with the seller of the product or service."

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FTC To Fine Bloggers Who Don't Disclose Freebies and Paid Reviews | 21 comments (21 topical)

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Does a similar rule apply to people who (5.00 / 1) (#2)
by oculus on Mon Oct 05, 2009 at 12:59:49 PM EST

appear on TV, radio, in print media? I know about the pay to play radio music thingee. Does this new rule require bloggers and others to disclose if they are being pd. by a political campaign?

Just wondering - does this mean the FTC (5.00 / 1) (#11)
by scribe on Mon Oct 05, 2009 at 01:37:11 PM EST

will also fine newspapers like the WaPo when they hold salons putting their reporters together with lobbyists and pols, when they charge $25k and up for holding the salon at the publisher's house?

I was going to post (none / 0) (#1)
by eric on Mon Oct 05, 2009 at 12:52:26 PM EST

something nice about this new beer I tried last weekend, but since I got a free sample, I'll refrain.

Envy! (5.00 / 1) (#3)
by Fabian on Mon Oct 05, 2009 at 01:10:55 PM EST

I sometimes do get free beer, but I usually disclose that my brother is the general manager of the brew pub when I talk about their beer. Just in case.


But does your brother monitor your (5.00 / 2) (#4)
by inclusiveheart on Mon Oct 05, 2009 at 01:18:27 PM EST

posts for complaince? Because that apparently is a requirement of the marketer under the new regulation.

I actually think that this could wind up being a fascinatingly tricky regulation.

I took a free sample of chocolate at the grocery store this past weekend. Now in order to get a free sample, we're going to have to give up all kinds of information to a marketer so that they can monitor us for compliance?


Do I have to sign a statement that I'm (5.00 / 1) (#5)
by Militarytracy on Mon Oct 05, 2009 at 01:22:57 PM EST

not a blogger before I get the inch square chunk of heated frozen pizza at the grocery store now?


I didn't have to sign anything... (5.00 / 2) (#6)
by MileHi Hawkeye on Mon Oct 05, 2009 at 01:28:12 PM EST

...for the free sample of the new Starbuck's freeze dried coffee just now.


Is it Gooooooood? (none / 0) (#7)
by Militarytracy on Mon Oct 05, 2009 at 01:30:02 PM EST

: Haven't tried it yet. (5.00 / 2) (#9)
by MileHi Hawkeye on Mon Oct 05, 2009 at 01:33:00 PM EST

I'm saving it for one of those desperate for coffee--any coffee--times.
I'm content to drink my short latte right now.

That's in the same league as (none / 0) (#10)
by scribe on Mon Oct 05, 2009 at 01:35:47 PM EST

all those soldiers who wound up explaining how they got to the present hellhole where they serve by saying "I believed the recruiter when he promised me ..." some garden spot like Hawaii....

Or "I believed the recruiter" for short.

I wouldn't go near that Starbucks Sanka sh*te if you paid me.


My husband believed his recruiter (5.00 / 1) (#13)
by Militarytracy on Mon Oct 05, 2009 at 01:43:42 PM EST

when his recruiter told him you couldn't go to flight school right after entering the Army :) You have to work your way to it :) It still makes him so mad. To this day. It's funny how po'd he gets talking about it.


"I believed the recruiter" was (none / 0) (#16)
by scribe on Mon Oct 05, 2009 at 02:27:42 PM EST

au courant slang for "I'm stupid" back many years ago when I was in. I suppose it's probably faded out of use by now.


Nope (none / 0) (#17)
by Militarytracy on Mon Oct 05, 2009 at 02:36:49 PM EST

And they still lie just the same based on what MOSs need to be filled at the time.


: Some things never change, (none / 0) (#18)
by scribe on Mon Oct 05, 2009 at 03:26:02 PM EST

do they?

Either that or give them your name (5.00 / 2) (#8)
by inclusiveheart on Mon Oct 05, 2009 at 01:31:40 PM EST

and all of your internet aliases... maybe... I dunno. I can't seem to get the FTC page to load completely at the moment, so I am working off of various reports and excerpts that I've read. What AdamB posted over at dkos, makes me thing that giving product away to consumers may look to be too complicated to bother doing it anymore to the marketers - except in very special cases where they really can monitor everything that a particular spokesblogger is doing and saying on the internets - which is really hard if you think about it.


Sockpuppets too? (none / 0) (#14)
by Militarytracy on Mon Oct 05, 2009 at 01:44:19 PM EST

This is getting pretty funny


: Yep - you're going to have to disclose (none / 0) (#15)
by inclusiveheart on Mon Oct 05, 2009 at 01:51:30 PM EST

those sockpuppets too if you want the free pizza!

Wah! (none / 0) (#12)
by Fabian on Mon Oct 05, 2009 at 01:43:36 PM EST

You mean I have to give up the holiday ale he brings to share unless I buy my own? Or I just can't talk about it?

I'm a not huge fan of the holiday ale, but there are a couple of brews I could sit down and type a few tipsy posts about.

Now I'm wondering about those online beer reviews. Can you buy a brew and review it IFF (if and only if) you've never had any free product evah from that source?

This is confusing!


I assume... (none / 0) (#19)
by kdog on Mon Oct 05, 2009 at 03:41:07 PM EST

freebies/recos of illegal substances are exempt, right?...:)

Ah who cares, whats being subject to one more fine to a walking "subject to fine/imprisonment" personified...its not like the FTC is efficient or anything.

: Leave it to kdog to figure out (none / 0) (#20)
by Cream City on Mon Oct 05, 2009 at 04:18:20 PM EST

that it's probably better to get paid in illegal substances and avoid all the FTC folderol.

Hmm (none / 0) (#21)
by kaleidescope on Mon Oct 05, 2009 at 07:02:58 PM EST

Will this apply to people who review books and who receive free advance copies?