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FTC States Bloggers Must Disclose Paid Reviews

An anonymous reader writes to tell us that in the first revision of how endorsements and testimonials work since 1980, bloggers will now be required by the FTC to clearly disclose freebies or payments they received for product reviews. "the commission stopped short Monday of specifying how bloggers must disclose any conflicts of interest. The FTC said its commissioners voted 4-0 to approve the final guidelines, which had been expected. Penalties include up to $11,000 in fines per violation. The rules take effect Dec. 1."

25 of 310 comments (clear)

  1. Astroturfing. by JCSoRocks · · Score: 4, Insightful

    Maybe the astroturfing garbage will finally stop... or at least be more obvious.

    --
    You are using English. Please learn the difference between loose and lose; they're, there, and their; your and you're.
    1. Re:Astroturfing. by moogsynth · · Score: 5, Insightful

      Maybe the astroturfing garbage will finally stop... or at least be more obvious.

      That's pretty naive. Of course it will continue. Although it will be obvious to you or me, it will still be somewhat deceptive. They'll probably try and portray the freebies themselves as positive endorsements for Company X. "Luckily for me they even included a stylish bag to carry it around in! These will be sold separately and I must say they look super stylish!!!!1"

    2. Re:Astroturfing. by Anonymous Coward · · Score: 4, Insightful

      Nothing good will come of this except more $$$ for more government positions or contractors.

    3. Re:Astroturfing. by sampas · · Score: 5, Informative

      The new FTC rules aren't exclusive to bloggers. They cover celebrities, too. You can read the proposed rule changes on the FTC's site here: http://www2.ftc.gov/opa/2009/10/endortest.shtm and in detail here: http://www2.ftc.gov/os/2009/10/091005endorsementguidesfnnotice.pdf . Saying "results not typical" won't make it legal any more. Also, ads will need to disclose sponsored "independent research," e.g. "we paid this doctor $10k to help us sell this garbage." Finally, maybe Slashdot stories could include links to the primary source?

    4. Re:Astroturfing. by mrjohnson · · Score: 4, Insightful

      Not in time to prevent the massive astroturfing campaign for Windows 7, however...

    5. Re:Astroturfing. by Red+Flayer · · Score: 5, Funny

      I know, don't feed the trolls...

      But seriously... if slashdot "went straight down the toilet" -- and you're still here -- that implies you're a turd.

      Just thought you should know.

      --
      "Trolls they were, but filled with the evil will of their master: a fell race..." -- J.R.R. Tolkien on Olog-hai
    6. Re:Astroturfing. by mcmonkey · · Score: 4, Insightful

      Why would you hope for someone with similar biases?

      For something like game reviews, yes, if the reviewer and I have liked the same games in the past then I have a better shot at liking the new game that just got the good review.

      However for political and social commentary, what do I get from reading a web log written from the point of view of my own biases? Someone to tell me what I already believe so I can respond with how insightful the poster is?

      If I read a web log written from a different perspective, I might actually learn something (I know--scary thought).

      At least then when I walk away with my same old biases, they've been positively reenforced by standing up to counterargument rather than coming out of the echo chamber of people who all agree.

    7. Re:Astroturfing. by EastCoastSurfer · · Score: 4, Interesting

      Good point, I was thinking about reviews, but ended up writing about everything. My point is that full disclosure is generally a worthless charade. Even though this is specifically about investments it's the best explanation of the sham of full disclosure I've seen.

    8. Re:Astroturfing. by kannibal_klown · · Score: 4, Insightful

      Personally for reviews I like to find the ones reporting problems or other low-scoring responses.

      Great, 80% of the owners on the forum LOVE this car and think it's god's gift. Good for you.

      I want to read from that other 20% where people are talking about rattling, quirks, and bad experiences.

      Those 80% are usually from Joe Sixpack applauding the number of cup holders and the glovebox, or couldn't tell a quality DLP tv from a 10-year-old analog projector TV.

      I like to get some of the good reviews too, and sometimes a bad review is just the writer's bias showing, but I find it informative.

  2. Get paid... by Protonk · · Score: 5, Funny

    So we'll be seeing fewer reviews on slashdot, then?

  3. US only by Monoman · · Score: 4, Interesting

    What about bloggers that are not U.S. citizens?

    --
    Keep the Classic Slashdot.
    1. Re:US only by Fulcrum+of+Evil · · Score: 4, Informative

      Last I checked, most places won't extradite you for things that aren't crimes in their legal code, especially when you did the deed in that country in the first place.

      --
      "We returned the General to El Salvador, or maybe Guatemala, it's difficult to tell from 10,000 feet"
    2. Re:US only by Yvan256 · · Score: 5, Funny

      although cultural references can sometimes give it away.

      What makes you say that, eh?

  4. What about politicians? by Anonymous Coward · · Score: 5, Insightful

    Stop calling it lobbying and call it by its real name: bribery. Will the politicians be fined to death in slices of $11K?

  5. A fixed fine is not a good idea. by Locke2005 · · Score: 5, Funny

    Penalties include up to $11,000 in fines per violation. Note to self: require a payment of at least $12,000 to endorse a product in my blog.

    --
    I've abandoned my search for truth; now I'm just looking for some useful delusions.
    1. Re:A fixed fine is not a good idea. by Anonymous Coward · · Score: 4, Interesting

      They should have gone with an over-100% value instead. Fine them $11000 or 125% of the value of the items/money/services received in exchange, whichever is more.

    2. Re:A fixed fine is not a good idea. by amoeba1911 · · Score: 4, Interesting

      Hey, why is that marked troll? He's right, if it's a fixed fine you might as well just say that government is going to tax each instance of lobbying the reviewers by $11000. If your overall profits exceeded the fine greatly, that's not a fine, that's just a tax on your profits. And that's assuming you get caught every time!

  6. And the politicians? by Neuroticwhine · · Score: 5, Interesting

    I may be incorrect on this, but do american politicians need to do the same, i don't believe they do (when considering modern lobbying)?

    It's a funny country when the random blogger on the interwebs is held to a higher standard than those that govern.

    http://en.wikipedia.org/wiki/Lobbying_in_the_United_States (it looks like ethic reform bills have been repeatedly struck down... surprise on that on eh?)

  7. Can of worms by slashkitty · · Score: 4, Interesting

    What's considered a blog? Is a twitter message included? What about facebook status updates? Affiliate links? It seems that almost every message that mentions a product on sites that make money will now have to include a disclaimer.

    --
    -- these are only opinions and they might not be mine.
  8. just wait by rossdee · · Score: 4, Funny

    if they ever catch this 'Anonymous Coward' guy, they will throw the book at him.

  9. Re:Where does the FCC get the authority? by MarkvW · · Score: 4, Informative

    This isn't about the FCC (Federal Communications Commission). It's about the Federal Trade Commission--the FTC.

    A blogger is one thing and an advertiser is another. Getting paid in exchange for publishing advertising copy is definitely something that is (and should be regulated).

  10. Re:What's a blogger? by Bazzargh · · Score: 5, Informative

    The actual FTC guidelines (Section V) don't use the word 'blog' in the guideline itself. Instead, they talk about 'endorsements' and define them like this:

    (b) For purposes of this part, an endorsement means any advertising message (including
    verbal statements, demonstrations, or depictions of the name, signature, likeness or other
    identifying personal characteristics of an individual or the name or seal of an organization) that
    consumers are likely to believe reflects the opinions, beliefs, findings, or experiences of a party
    other than the sponsoring advertiser, even if the views expressed by that party are identical to
    those of the sponsoring advertiser. The party whose opinions, beliefs, findings, or experience
    the message appears to reflect will be called the endorser and may be an individual, group, or
    institution.

    They give a bunch of specific examples (which do mention blogs), including one of astroturfing which implies this applies to appstore, amazon reviews (which would be nice). It does seem as if they mean things like twitter should be covered. There's also a bunch of circumstances they describe where you don't have to mention your affiliation, eg if you're a sports star with a clothing contract and always wear that brand off the field as well as on, or if you appear in a clearly-labelled advertisment giving a testimonial and are only paid for the ad - its a different if you have a financial interest in the product.

  11. US only by Roger+W+Moore · · Score: 4, Insightful

    The FTC rules only apply to people in the US. Once again this is an example of how one country's laws are meaningless on the Internet. They will simply pay non-Americans to astroturf. You cannot tell whether someone is typing with an American accent on the net - although cultural references can sometimes give it away.

  12. How about in review mags? by rAiNsT0rm · · Score: 4, Funny

    I worked as a videogame reviewer for a number of years and the amount of bought and paid for "reviews" in that game is just silly. I once panned MGS3 (for being all hype and cutscene and little substance) and got a nasty letter from them stating they would not continue to reimburse me or advertise for our site... we were a totally independent site and took no money or ads in the first place.

    --
    http://teasphere.wordpress.com - A little spot of tea
  13. Score another one for the corporations. by professorguy · · Score: 4, Interesting

    ANY statement of endorsement in print, media, or on the web, where ANY form of payment, discount, freebie, etc was given, with or without a request for a favorablke posting, requires disclosure

    My wife's gardening website includes a link to her friend's wedding bouquet service with language indicating my wife's endorsement.

    While she was not paid for that link, they have known each other for 50 years. So many, many free gifts have been exchanged in that time. Even money has probably changed hands between them at some time during their association.

    Is a disclaimer required on her site? Because if so, then this is a win for the mega corporations. If I can't recommend my friend's service, then only massive corporations will get any advertising at all.