The Federal Trade Commission [FTC] has revised its guidelines around endorsements and testimonials – online and word-of-mouth recommendations.
Bloggers - Their statement appears to judge statements by bloggers, even on person blogs as an ‘endorsement,’ or sponsored message – if the blogger has received any merchandise and been asked to review by an advertiser. In such instances, the connection must be disclosed.
Amazon Reviews – “reviewers” posting to sites like Amazon after receiving a free review copy also need to disclose that information.
Publishers - who “sponsor endorsers either by providing free products [ either directly or through an agent to generate positive word of mouth and drive sales need to advise endorsers to make the necessary disclosures and to monitor their conduct in respect of these endorsements.
The FTC admits its “guides” are “interpretations of the law aimed at helping advertisers comply with the Federal Trade Commission Act” rather than binding law, and the burden of proof is on the Commission. Fines of up to $11,000 per violation.
IMO – I can’t see that monitoring the Web and enforcing these new guides will be easy, and at best the new rules are confusing, ambiguous and likely unenforceable.
