Effective December 1st, Bloggers Must Disclose Payments for Endorsements

Lorrie Thomas

October 7th, 2009
by Lorrie Thomas

There is always lots of buzz about blogging for revenue floating around the world wide web.  I have seen bloggers have blog tip jars for loyal readers to thank them for their great content, and some bloggers endorse other products or services in exchange for moolah….

To keep blog content as authentic as possible, effective 12-1-09, the FTC is mandating that bloggers must disclose payments for endorsements.

I think this is is a great rule, as bloggers will have to be transparent about their recommendations and readers get to see the real deal so they know what content is truly a recommendation and what posts have a little “something something” behind the content…

What do you think?

Comments:

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  2. Keith T.
    (October 7th, 2009 at 2:29 pm)

    This may sound like a good idea in theory (as do many government initiatives), but in practice it may not be so great. As a blogger myself, I would love to know how the FTC intends to really enforce this? Or maybe I shouldn’t ask as the answer may be disconcerting…

    Anyone who uses the web for information should know by now that it’s ALWAYS buyer beware – regardless of where you are getting your information from. If you are researching something, do your due diligence and read up on the subject from several sources.

    Here’s a link to an interview with Richard Cleland from the FTC:

    http://www.edrants.com/interview-with-the-ftcs-richard-cleland/#

    There are enough holes in Mr. Cleland’s arguments to make swiss cheese envious.

    *** PLEASE NOTE: I received zero compensation from the Wisconsin Dairy Farmers Association for using a swiss cheese reference ;)

  3. Kate
    (October 7th, 2009 at 5:36 pm)

    I too agree that it’s a good idea in theory, but it’s non consistent across all types of media – why are bloggers called out specifically? What about print media, for example?

  4. Lorrie Thomas

    Lorrie Thomas
    (October 7th, 2009 at 5:43 pm)

    Keith,
    I am sorry that the Wisconsin Dairy Farmers Association has not paid you for blogging about cheese, but good news is that there is no revenue to report!

    How will the FTC enforce this? I have NO idea! My guess is that they will hit the big bloggers and make an example.

    I still think that bloggers could be more transparent about how they get paid. If there is a raving blog encouraging readers to buy and the blogger gets a kickback, I want to know!

    Web Marketing Therapy endorses Constant Contant and we make a teeeeeny % of referral (as well as off our Amazon self-help books) and I am happy to share that my $14/year is comped and my endorsements are real, I am merely an affiliate to offest some of my web marketing costs.

    Can I ask what your blog is Keith?
    -The Marketing Therapist

  5. Lorrie Thomas

    Lorrie Thomas
    (October 7th, 2009 at 5:46 pm)

    Kate,
    Thanks for bringing up the call out of bloggers versus print writers. Web people do seem to get slammed harder for some reason :(

    Bloggers tend to boast how they make money blogging and social media has no much big buzz lately that I think it was a combination of awareness and opportunity that made the FTC call this out.

    It would be great to see a writer in a print publication have to disclose that their article was written as a make good to an advertisement gone wrong!! HA!

    Does your blogger community have thoughts on this? I’d love the other blog experts you design for to chime in!
    L

  6. Keith T.
    (October 8th, 2009 at 3:05 pm)

    I still worry about how far they can go. What if you blog about a great experience with a client, do you then have to disclose that yes indeed your client paid you and how much? A good review of this client may drive business to that company and you did get paid, so it could potentially fall into this, even though I’m sure it was not intended to.

    I think the grey areas just give a law like this way too much latitude. You can’t save people from themselves, no matter how much the gov’t would love to think they can.

    As for my blog, it’s regarding food and wine: http://eastvalleyfoodie.blogspot.com/

    Mostly restaurant reviews to date, but more in-depth wine coverage will be included in the near future. If someone pours me a taste of wine, I suppose I may have to preface each review with the fact it was given to me. I would hate to be fined up to $11,000 for a waived tasting room fee ;)

  7. Nicki Gauthier

    Nicki Gauthier
    (October 8th, 2009 at 4:19 pm)

    I agree that it is unfair to only call out bloggers! What about product placement in TV Shows and Movies?

    Like LT says, “it is all about the Pro-sumer these days”… for example, I only read authentic and transparent blogs and if they are dishonest or misleading then the trust factor is lost.

  8. Susan Levine
    (October 11th, 2009 at 6:00 pm)

    Do ads such as Google AdSense mean that we are endorsing the companies that advertise with them but appear on my sites?

  9. Lorrie Thomas

    Lorrie Thomas
    (October 11th, 2009 at 6:21 pm)

    Hi Sue,
    GREAT question. This rule is for bloggers who are blogging (actually raving about companies in their posts) versus having AdSense ads on their blogs. AdSense ads are very clearly indicated that they are ads….it’s the content that can be grey area…
    -The Marketing Therapist

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