IAB Raises Constitutional Concerns
The Interactive Advertising Bureau (IAB) recently voiced its objection against the FTC’s guidelines for sponsored blogging, terming them potentially unconstitutional. Specifically, the IAB’s President and CEO, Randall Rothenberg, criticized the FTC’s distinction between offline and online media. His argument is that such differentiation could be “constitutionally dubious.”
In his letter to FTC Chairman Jon Leibowitz, Rothenberg stated that these guidelines seem to curtail the freedom of the online medium more than any other media. Highlighting the discrepancy, he pointed out how similar practices have enjoyed First Amendment protections in traditional media, yet face more restrictions online.
FTC Guidelines and Their Implications
Set to be enacted from December, the FTC’s guidelines have been the focal point of much debate. A significant highlight from the recent BlogWorld Expo was a keynote session discussing the upcoming regulations. Prominent speakers included Ted Murphy, the CEO of IZEA, known for its involvement in sponsored tweeting, Wendy Piersall of Sparkplugging.com, Jennifer Leggio, a ZDNet blogger, and LA attorney Lisa Rotkin.
The attendees’ poll revealed that approximately 60% favored sponsored tweets, with a small percentage opposing them.
Rotkin elaborated on the guidelines’ aim to define endorsements, emphasizing the need for authentication. She highlighted the shared responsibility between bloggers and advertisers, though recent FTC commentary seems to lean more towards monitoring advertisers. Disclosure remains a central topic, especially considering the ambiguity surrounding its methods.
The Many Faces of Sponsored Content
A notable part of the discussion was the identification of eight types of sponsored posts:
- Access
- Incentive
- Thank You
- Product demo
- Advertorial
- Paid Reviews
- Junket
- Payola
Rotkin believes that while sponsored posts can be suitable in specific scenarios, there seems to be a general short-sightedness amongst bloggers about their long-term implications.
On the topic of transparency, Piersall trusts in people’s capability to disclose appropriately, emphasizing the repercussions of failing to do so. She pointed out that public perception is beyond her control, sponsored or otherwise.
The Perspective of Major Players
Murphy, of IZEA, remarked that his company, which emphasizes monetization, often faces scrutiny. Donning a shirt with “I heart the FTC” printed on it, he underscored his stance on the issue.
Meanwhile, Leggio provided a fresh perspective, emphasizing the difference between popular social media personalities and traditional celebrities. She raised a pertinent question about the goals of sponsored blogging: “Do you want a spokesmodel or a thought leader?”
The Twitter Conundrum
One of the recurring issues in these guidelines is disclosure on platforms with character restrictions, like Twitter. Jeremiah Owyang, who led the session, believes simple hashtags, like #ad, may be insufficient for disclosure. Murphy suggested developing specific “tools for disclosure,” though the exact nature of these tools remains undefined.
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