FTC Targets Bloggers and Social Media Posters
No Free Meal Tickets or Other Payola for Online Testimonials
Oct 7, 2009
Online has been the wild west of the modern world with minimal regulation other than unofficial peer policing, but that has changed with new internet rules established by the United States Federal Trade Commission (FTC) which will take effect December 1, 2009.
Truth in Advertising in Not a New Concept
The FTC has regulated advertising dating back 95 years with provisions designed to protect consumers from fraudulent advertising and snake oil. After all, no one wants to get taken for a ride, and the government feels an obligation to assist in reducing fraud.
Online went up so fast and furious that it was difficult for a government agency to get an idea of the concerns and to get a handle on federal regulations regarding a medium with little to no gatekeeping.
What Are the New FTC Rules for Online Publishers and Bloggers?
As with all government regulations, things are a tad fuzzy. A few court cases may clear things up. But, when the fines run up to $11,000 for online blogger or social media posters, very few onliners will want to test the waters. Better to be safe than sorry if working online even on a casual basis.
Some of the main issues addressed, generally, under the new FTC guidelines for online publishers include full disclosure for incentives or payola for reviews or posts, putting up product claims that are atypical, and celebrities hawking products based on being given the items for free (like on Twitter posts).
What Do the FTC Regs Mean for Online Bloggers and Social Media Gurus?
The main focus with the new FTC rules is that those posting online must make clear any bias. In other words, if a blogger or site owner or celebrity works for a company, takes money from a company, gets free stuff from a company, or benefits in any other way, then that must be stated.
An example of disclosure would mean that an onliner would need to say they he or she got paid to post a article or forum post, got a product for free, or that an embedded link was sponsored (or paid for by a company).
Someone who works for a company would need to make that clear before saying that the widget made by that company is the best thing ever. And, celebrities would need to note that the hotel or iPhone that they say is fabulous was provided for free.
Yes. Big name celebs get all kinds of free stuff. They can afford to pay, so why get stuff for free? A good word from someone famous can mean tons of bucks for companies, so they give freebies to the rich and pass on the costs to the general consumers.
Atypical results would also have to be couched with numbers indicating typical usage. For example, the ads that say things like lose 20 pounds in 2 weeks and show someone who did so must also include that most using the program lose only x number of pounds in a certain time period (or the typical average). Clearly those paid to promote are going to be the super achievers. How fair is that to the working stiff who shells out the bucks to get the same program and then see minimal results.
Is the New FTC Program Fair to Onliners and to Online Surfers?
Actually, the new FTC rules for online are harsher than those for other media. You do not see a whole lot about Jerrod on the Subway diet and how that may or may not work for others who opt for and can afford to eat at the restaurant. Take a small female and have her eat a sandwich every meal (even a low fat sandwich), and that may not result in great weight loss or any at all.
It is quite typical for mass media outlets to get comp books and movie tickets or tickets to shows or ballgames when covering those events. Certainly, that is never (or very seldom) mentioned in traditional media, but it would be required for online media posters. While those working for a newspaper or a TV station get paid real wages, many bloggers work on a dime (or less).
So, making onliners pay (or reveal for every single perk) may cut down on the amount of information out there. Is it really worth it to get a free book if the online blogger or site owner must add a disclaimer. Maybe yes. Maybe no.
Also, some online writers have gamed the system big times. Some will walk in a restaurant and demand a free meal, because they have a blog and will trash the restaurant if not given a free meal. Of course, that is not fair. Others will use the online card to get other special treatments.
If an online customer is being unreasonable, he or she may note that a post will be made about the company and that it will not be flattering if unfair demands are not met. That's blackmail, and it should be against the law. Thumbs up to companies who say, "Go for it." It does shake out in the end, and no one should be threatened.
How Will the FTC Regs Shake Out Online?
One guess is as good as the next as far as how well the new FTC online regulations will play out. It’s all new territory and will probably end up involving a lot of legal action. It does make sense that someone who gets paid to post good things about something they never touched should be on the line for that, or that bloggers or online writers putting up contextual links should have to answer for that.
On the other hand, it does not seem fair that book reviewers (who make very little online) must say that they got a comp book when the local newspaper does not have to mention that. But, anyone writing online should be very clear on such perks, because the new FTC laws could kick some onliners right in the teeth - both the bad and the good ones.
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