Beginning December 1, bloggers and twitterers can be liable for hefty fines if they promote products and services for pay without disclosing that they have a financial arrangement with an advertiser.
For the first time since 1980, the Federal Trade Commission has updated its rules on endorsements and testimonials in advertising. The new rules now specifically require bloggers and twitterers to clearly disclose any "material connection" to an advertiser, which includes payments for ads or promotional copy, or also for free gifts given in exchange.
Fines can be up to $11,000 for each violation.
For most bloggers I know, these new rules won't be a problem. They already make it clear if they've received a free product or book for review. Even Joe Jaffe, who stirred up people a few years ago when he over-hyped his free digital camera, made it perfectly clear he had been given a demo camera. Readers were then free to make their own judgment about the impartiality of his blog posts.
The real problem seems to stem from a few segments of the blogosphere where outright greed and deception seem to run rampant. Mommy bloggers (not all, of course) have been big abusers, with some so greedy that they've made it clear their policy is "no pay, no play." Want to get written up in a popular mommy blog? No problem, as long as you send a nice payment or a major appliance or a trip to Disneyworld. No freebie? No coverage.
There's also been some abuse in the health area, where some bloggers recommend remedies only because they've been paid to do so. Consumers have a right to know that the blogger may have been influenced by payment, which is what the new FTC rules are about.
It's probably abuses in these areas that brought the FTC's scrutiny. For those who've been deceptive and greedy, their blogging practices will have to change. It'll be hard to fly under the radar, since the FTC will probably be looking for a few cases they can use as high-profile examples.It should be interesting to watch over the next several months. For most of us, though, it's business as usual.