Tuesday, June 23, 2009
(graphic: SearchForBlogging.com)
As the blogosphere has grown into a resource for shoppers looking for advice or recommendations on products, so too has the practice of bloggers being paid by companies to promote their goods or services—which is why the federal government has decided to begin monitoring this aspect of Web commerce. This summer the Federal Trade Commission is expected to adopt new guidelines that would allow the FTC to go after bloggers, and the companies that compensate them, for false claims or for failing to disclose conflicts of interest.
The decision marks the first time the FTC will pay close attention to the content of blogs. The new rules also could potentially impact the widespread practice of affiliate marketing, in which hosts of blogs or websites post graphical advertisements or links to online retailers in exchange for commissions on sales. Some bloggers have received rewards such as gift cards to stores, free cruises and even direct payments to write positive reviews of a product or service.
FTC officials say it’s important for online shoppers to know who is providing independent advice, and who is profiting from their endorsements on blogs. Many bloggers object to the new rules, fearing that even their “innocent” posts may get them into trouble with the FTC and result in fewer people providing unsolicited advice on the Internet. Supporters of regulation counter that the new rules would help consumers distinguish between paid endorsements and those bloggers who really do provide objective product reviews.
-Noel Brinkerhoff
FTC Plans to Monitor Blogs for Claims, Payments (by Deborah Yao, Associated Press)
Guides Concerning the Use of Endorsements and Testimonials in Advertising (Federal Trade Commission) (PDF)
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