FTC – Bloggers Liable for Endorsements and Misleading or Unsubstantiated Representations

October 8, 2009

The Federal Trade Commission this week released new Guides Concerning the Use of Endorsements and Testimonials in Advertising.  Since I am a strong and vehement advocate for authentic and genuine participation/interaction on the social web, allow me to provide my spin on how we might simplify our understanding of the 81 page FTC document:

  • If you get PAID to SAY, then you must SAY you got PAID.
  • If you CLAIM RESULTS, it better be TRUE.

Here is a verbatim breakdown of the FTC Office of Public Affairs release (10/5/09) as it relates to bloggers:

1)  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.

2)  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.

3)   A  paid endorsement – like any other advertisement – is deceptive if it makes false or misleading claims.

Let’s all work to preserve the integrity in the appropriate use of social media, within which resides immense possibilities for a more meaningful world.  Since I’m not a lawyer, I encourage you to consult a lawyer or legal counsel for advice or a complete interpretation of the  complete 81 pages of text.

Entry Filed under: Social Media, Web 2.0 and Beyond. Tags: , , , , , , .

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