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FTC Debates 'Traditional Media' vs. Blog Reviews; Demands Bloggers Disclose Freebies, Payments

Oct 05, 2009 11:08am CST tags: Government, Legal, Federal Trade Commission
The Federal Trade Commission today announced the latest revisions to its "Guides Concerning the Use of Endorsements and Testimonials in Advertising," revealing that "bloggers" and other "word-of-mouth" endorsers must now disclose "connections that consumers would not expect," such as free product or cash in exchange for review.

The announcement did not provide a specific definition of "blogger," leaving it unclear what effect this will have in the arena of video game reviews, news, and professional blogging in general--a field where free review copies and paid trips are commonplace. It was likewise unspecified how writers are to properly disclose "material connections."

However, it was noted that these guidelines do not apply towards "traditional media"--described as "a newspaper, magazine, or television or radio station with independent editorial responsibility"--as the Federal Trade Commission believes the issue lies primarily with "consumer-generated" content and personal postings.

"The post of a blogger who receives cash or in-kind payment to review a product is considered an endorsement," declared the FTC. "And a paid endorsement - like any other advertisement - is deceptive if it makes false or misleading... Read more