The Federal Trade Commission (FTC) recently introduced its updated guidelines concerning endorsements and testimonials in advertising, with a particular spotlight on bloggers and social media users.
Understanding the FTC Guidelines
The primary objective of these revised guidelines is to mandate bloggers and social media users to disclose any payments, whether monetary or in product form, they receive from companies when producing content about them. There were initial claims that non-compliance could lead to fines up to $11,000 per post.
However, as clarified by Richard Cleland, assistant director at the FTC, the $11,000 fine isn’t accurate for first-time violators. He emphasized a more educational approach towards bloggers, and their focus is more on advertisers, their educational measures, and monitoring accuracy of bloggers’ claims. Read more about Cleland’s thoughts.
Addressing the Controversy
The guidelines aim to foster transparency and protect consumers from misleading information. But this government intervention has raised eyebrows. Jeff Jarvis, a renowned author/editor/publisher, likened the situation to the government monitoring private conversations in a diner, using a memorable Denny’s analogy.
Conversely, Matt Cutts from Google voiced support for the guidelines, highlighting their potential to enhance the web’s trustworthiness. Yet, many questioned whether government regulators not involved in online content production should dictate the terms.
Questions and Gray Areas
Ron Hogan from MediaBistro’s GalleyCat raised intriguing questions in an “open letter to the FTC”:
- Who bears liability in the case of an unpaid blogger endorsing a product on platforms like the Huffington Post?
- Does printing and distributing blog posts make a blogger a newspaper or magazine publisher?
- When does stating facts about a product become an endorsement?
The guidelines also mention that they aren’t laws but administrative interpretations to help advertisers align with the Federal Trade Commission Act. Despite this, the main attention seems to be on bloggers, raising questions about the FTC’s definition and understanding of blogging.
The rules are set to be implemented on December 1st.
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