New F.T.C. Guidelines May Mean Less Freebies

The F.T.C. has released new guidelines concerning the use of endorsements and testimonials in advertising to adapt to a world where bloggers and social media sites may have as much influence, or more, on a consumer’s decision to buy a specific product than a television advertisement.

Starting December 1, 2009, bloggers reviewing products on their blogs will have to disclose their connections with advertisers, if any.

From the FTC press release: The revised Guides also add new examples to illustrate the long standing principle that “material connections” (sometimes payments or free products) between advertisers and endorsers – connections that consumers would not expect – must be disclosed. These examples address what constitutes an endorsement when the message is conveyed by bloggers or other “word-of-mouth” marketers. The revised Guides specify that while decisions will be reached on a case-by-case basis, the post of a blogger who receives cash or in-kind payment to review a product is considered an endorsement. Thus, bloggers who make an endorsement must disclose the material connections they share with the seller of the product or service.