FTC: Bloggers Must Reveal When Paid for Reviews
The FTC has laid out rules that aim to regulate blogging and reviewers who accept payment from companies.
The FTC yesterday announced an update to the rules that govern the use of endorsements and testimonials in advertising, stating that bloggers and online reviewers must disclose when they receive payment for a post or review.
This is the first update to the FTC’s Guides Concerning the Use of Endorsements and Testimonials in Advertising since 1980 and the new revisions state that bloggers who receive cash or in-kind payment to review a product must disclose the material connections they share with the seller of the product or service.
As you can imagine, there's been a mixed reaction to this one. NYT cites Linda Goldstein, a partner at Manatt Phelps & Phillips, a law firm that represents three marketing groups, who points out just one flaw in the new revisions.
“If a product is provided to bloggers, the F.T.C. will consider that, in most cases, to be a material connection even if the advertiser has no control over the content of the blogs.”
The new rules come into effect on December 1 and will carry a fine of up to $11,000 per violation.
How do you think the new rules will change how blogs conduct reviews? Let us know in the comments below!
- VIDEO: Boeing's Advanced Tactical Laser; Pew
- Warning: Hotmail Passwords Leaked Online
- Toshiba HDTV Offers Integrated Cell CPU
- Palm Fights Back, Reactivates iTunes Syncing
- 250 GB PS3 Slim Shows Up in European Store
- PSPgo: Hacked Just Days After Release
- Hydrogen-powered Mobile Phone Chargers
- Google's Chrome OS May Arrive Next Month
- Hack Stuff? Homeland Security is Hiring!
- iPhone Exclusivity Ends in Canada
- Study: Internet Addicts Are Like Drug Addicts
- PSP Go Gets Early Price Break in the UK
- Flash Coming to iPhone Too... Somewhat
- Hollywood Assaulting Pirate Bay ISPs
- Nintendo Attempts to Kill All R4 Revolutions
- AT&T Green Lights VoIP Apps for 3G, iPhone
- Kindle 2 Gets Price Cut, Goes International
- Report: Dell to Bring Android Smartphone to U.S.
- TDK Sports 10-Layer, 320 GB Blu-ray Disk
Good.
I can name a half dozen sites where it's blatantly obvious the "reviewers/bloggers" are paid off, by the company they are reviewing a product for.
Any effort to help push truth in advertising is a-ok' in my book.
"“If a product is provided to bloggers, the F.T.C. will consider that, in most cases, to be a material connection even if the advertiser has no control over the content of the blogs.”"
----------------------------------------
As long as the reviewer/blogger states that he cannot keep the product as compensation, I don't see a problem with having to disclose this fact.
We all already know, in order to review something, you generally have to "use" it.
I agree with this regulation. It protects me, the consumer, from false information.
Jane has to disclose the source of her iProducts
I can't see this having much of an impact since the complaints would be hard to prove without an inside source.
I can't see this having much of an impact since the complaints would be hard to prove without an inside source.
with a fine up to $11,000, i'm sure people that live of misinforming consumers will think twice of doing it at the very least.
Basically the same reason why those "health" product ads that look like newsbreaks need to have a disclosure about being an ad.
I can't say I've read too many blogs for product reviews. Sites run by companies (like Tom, TGDaily, Anand, etc...) do need to be regulated, and probably already were before this new law. Blogs are personal opinion (and carry an inherent disclaimer that they might contain 100% B.S.). That fact that people get sued for their personal opinions, and the fact that these personal opinions regularly make the news (if not sourced as news themselves) is just stupid. Why regulate blogs? Just ignore them.
At least the cost of having to print a newspaper or broadcast a TV show meant someone was accountable in someway. Creating a free account on blogger and saying your a respectable journalist doesn't account for squat.
If you don't realize a blog, twitter, facebook, etc.. is just individuals spouting their own opinions, you shouldn't be on the internet. Remember when it was found out the CNN twitter account Ashton Kutcher was competing against wasn't even owned by CNN?
I don't think I need to be informed when a blogger reviews an item that was given out to reviewers to be reviewed. Most of the time that is already stated or assumed because most people don't just make a habit of buying up tons of electronics and reviewing them. Doesn't quite fit the same category as being paid money to write a positive review and certainly shouldn't warrant the same $11,000 maximum fine.
Not disclosing that you are being paid to write the review by the company that makes the product or an affiliated company? Sure. Not disclosing that you are reviewing a review model that was given out to reviewers? Eh, probably not an $11,000 crime. What we are going to see now all over the place is "This is a review of XXXX. This product was given to us for review by XXXX. It is not ours to keep. Etc." Kind of silly.
Right, but at the same time, if someone says "we are being paid by X company X amount of dollars to review this..." that's going to carry some weight. What I think this will prevent is companies trying to BUY positive reviews rather than the reviewers themselves changing much.
Cough*KaneandLynch*Cough.
How about the people posting comments about the product or service? I am 100% sure there are companies who hire people to post negative comments about competitor's services and products, while posting positive comments about their own services and products. People can't tell the difference, and you can easily create numerous fake login accounts and create multiple e-mails.
I still remember all those protecting Vista even when beaten with arguments on almost every point they made. Now, open source must have paid those who opposed Vista as we all know MS does not have the money and will to manipulate the market in any way.
Windows 7 parties! Do them count?
The positive thing from all of us, is that it would require sights similar to Tom's Hardware to state whether they are given compensation or some sort of perk to review a particular product.
That will help sites like Tom's Hardware with regard to the folks who repeatedly insist that such sights are inappropriately biased toward one particular manufacturer or brand.
I could see this being a win/win for everyone. Bloggers/Reviewers have to be open and honest, and readers get to know the truth. In return, bloggers/reviewers earn more trust from their readers.
It's about time.
Does this apply to toms hardware? I want to see how they get all these engineering samples for free etc.
I hope theescapist and zeropunctuation reviews are not paid by anyone except listeners. They're fun.
Well, they can move their servers to a different country. US laws don't apply worldwide.
I hope theescapist and zeropunctuation reviews are not paid by anyone except listeners. They're fun.
Yahtzee (ZP) always talks about whether or not he has to pay for a game or gets it sent to him... it's part of his schtick. I doubt he get's paid by anyone other than the company he works for seeing as how he often reviews games that aren't even being sold anymore. That and who would pay to have every flaw in their game ripped out and shown bleeding to the world?
articles like this suck. it takes a good thing and spoils i. period.
* this was paid for by anonymous paid bloggers of america*
articles like this suck. it takes a good thing and spoils i. period.
* this was paid for by anonymous paid bloggers of america*
Yahtzee (ZP) always talks about whether or not he has to pay for a game or gets it sent to him... it's part of his schtick. I doubt he get's paid by anyone other than the company he works for seeing as how he often reviews games that aren't even being sold anymore. That and who would pay to have every flaw in their game ripped out and shown bleeding to the world?
Negative reviews can be sponsored by competition, can't they?
articles like this suck. it takes a good thing and spoils i. period.* this was paid for by anonymous paid bloggers of america*
This (if serious) would be a perfect example.
VioMeTriX, thank you.
Next on the agenda: having that delicious-looking burger you see on [insert fast food chain here]'s menu look more like the sad, soppy, smushed thing you actually receive when you hand over your cash.
IMPOSSIBLE TO ENFORCE... USELESS LAW NOTHING WILL CHANGE
man, i cannot wait till this blogging fad is over. it is hard to find good accurate news these days when anyone who is scratching there nuts reports on some news story which has bad punctuation, grammar, and tons of mistakes
I tu hatte wen theire many mistakes
Why anyone would want to read the babblings of bloggers is quite beyond me. I have never succumbed to peer pressure or purchased a product on the opinion of an opinionated twat or twit.
Capitalism is corrupt to the core...The FTC ruling is tokenism; some wily lawyer will find a way around it and normal corporate agenda viewing will be resumed for the Borgs.
Seems to be further proof that America is a communist state controlled by large commercial interests now. I mean Why shouldn't we single out bloggers or any other group and apply laws and rules only to them. Letting other commercial advertising entities operate by other rules .Not only that but lets give them a vague title like blogger so we can punish anyone who might fit that vague description. How exactly does this apply to a sails person who receives a commission for a sail. How is it fair to only apply this to one section of advertising. When is the last time you saw any advertisement that "disclosed when they receive payment for a post or review". If this kind of rule is going to exist it should be applied to all advertising all the time not just to bloggers. looks to me like what it does do is reduce the ease of low cost/amateur advertising. Giving large corporations more control over information. If this is such a need then is should be applied across all mediums like television, radio, newspaper, and any other form of advertising.
man, i cannot wait till this blogging fad is over. it is hard to find good accurate news these days when anyone who is scratching there nuts reports on some news story which has bad punctuation, grammar, and tons of mistakes
hmmm you mean sort of like tom's lately? LOL ( i couldn't resist)
Toms seems to be doing it right.
They generally tell us when they get something for free, and generally from who. I think that's all it takes.
About freaking time is you ask me. Hopefully that will shut the flappers of some pathetic fnboys, killing gaming for the past few years in their own way.