Bloggers beware - there are some interesting changes on the horizon beginning December 1, 2009. New rules recently issued by the Federal Trade Commission (FTC) will change the way we author blog posts and articles about testimonials and online reviews, in an attempt to make them more reliable for consumers.
For the first time, the FTC is attempting to regulate what bloggers and online writers must disclose in reviews or testimonials about a product. Going forward, any blogger must clearly disclose any free products or payments received in exchange for reviews and testimonials. The panel voted 4-0 to approve the new guidelines, which will protect consumers from paid reviews. The protection is twofold as it protects consumers not only from those making the posts, but also from the advertisers who feature these testimonials in their ads.
The primary inspiration behind the new rules seems to be the unscrupulous advertisers who feature paid testimonials with tiny print at the bottom indicating "results not typical". There needs to be ‘truth in advertising’ again and the FTC wants to ensure there is full disclosure and consumers can openly gain knowledge on what to expect from the products they are buying and the services they depend on. No longer can these advertisers claim dramatic results and hide behind the fine print noting results are not typical. They will now be forced to disclose what the typical results are for the majority of consumers.
With this push to protect consumers from misleading advertisements comes the desire to extend those regulations to anyone who publishes information on the web. The rules are not abundantly clear as to how bloggers should note potential conflicts of interest, just that they need to. Rich Cleland, Assistant Director of the FTC’s advertising practices division, said, "the disclosure must be clear and conspicuous, no matter what form it will take."
Cleland goes on to explain:
"If you walk into a department store, you know the (sales) clerk is a clerk. Online, if you think that somebody is providing you with independent advice and…they have an economic motive for what they’re saying, that’s information a consumer should know."
For those wondering what needs to be disclosed, all reports seem to indicate everything, no matter how trivial or minor it may seem. If you receive a book to review, your review must note that. If you are reviewing a restaurant and receive a free dessert, you must disclose it. And, if you are affiliated or work for a company mentioned in your review or testimonial, guess what? You must disclose that too. One exception to this disclosure rule would be a situation where you get something for free that is not connected with your blogging or writing endeavors. One example would be where a store is offering a "buy one, get one free" promotion to anyone who purchases the product.
It may come as a surprise to find that these rules are not really new. These are just further interpretations of existing rules already in place which ban unfair and deceptive business practices. There was a consumer group advocating the strict guidelines to be applied to bloggers because they feel it will send a stronger message. "By going after the bloggers as well, you put far more pressure on them to behave properly", Jack Gillis said, who is a spokesperson for the Consumer Federation of America.
The FTC rules are not designed to affect media professionals, and those who write for trusted sites. What is not clear though, is what constitutes a trusted site? Sources like Associated Press and CNN may be considered trusted sources, but would smaller sites like factoidz be exempt? Some of the speculation may revolve around whether someone is an employee versus a freelance writer. Many citizen bloggers, as they are often known, contribute articles versus personal blog posts. With the customized options and advanced themes offered on blogging platforms like Wordpress or Typepad, how could a general consumer know they are reading a personal blog versus an online magazine? This is a rather concerning grey area and it is probably best to err on the side of caution.
One area that could potentially be affected is the wine industry. Many wineries comp wine bloggers a bottle here or there as it is an inexpensive way to get their product out there and into the consumers’ hands. What about the wine blogger who is an accredited sommelier and has impeccable credentials? Just because they are publishing the wine tasting notes to their personal blog versus a column in the San Francisco Chronicle, should that be any less trusted? Ask most wine bloggers and they will say they consider themselves media professionals as well. Many of them have press credentials and use those to get into events for free. And let’s not even delve into the world of microblogging and Twitter. Many wine bloggers tweet their wine notes and finds - how do you include a disclosure in those 140 character tweets?
The fines for violation of the rules are hefty, which should make bloggers with even minimal readership take note. Fines can be up to $11,000 per violation and the offending party could face potential injunctions and be required to reimburse consumers any for financial losses stemming from inappropriate product reviews. Reports seems to indicate the fines would be a last resort as warning letters and cease and desist orders would be sent first. If there is still a failure to comply, then the FTC would look to fine the offender.
There is a lot of chatter in the blogging community about the pros and cons of the new guidelines. Some social media people are speculating the FTC will likely target large blogging sites to make examples out of them, thereby scaring the rest of the web writing community. Whether that speculation comes true remains to be seen obviously.
Some bloggers have pointed out that if deceptive practices are happening now, it is not likely those offenders will change their practices. Others believe these disclosures could help and lend credibility to their blogs. The blog will appear more professional and they believe consumers feel bloggers should be compensated for their time spent, so they will consider those reviews more credible.
Many bloggers are not worried by the new rules as they have already been disclosing this information. The general consensus on some blog forums is writers will be protected if they place a sentence at the end of the blog post or article. Other bloggers and writers feel the rules are unfair because they only extend to the online world of publishing - there are no similar guidelines for print journalism. It’s no secret that those in certain industries receive press trips and freebies all the time, but the FTC is not looking to regulate the information that appears in a newspaper or magazine, just seemingly online.
Time will tell if these new guidelines will eventually be carried through to other journalistic portals. In the meantime, it certainly seems that the start of December will bring some interesting times on the Internet!
Sources:
Federal Trade Commission press release: http://ftc.gov/opa/2009/10/endortest.shtm
Yahoo Finance article: http://finance.yahoo.com/news/FTC-Bloggers-testimonials-apf-468964868.html?x=0
