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October 05, 2009
Yes on the FTC's disclosure rule for bloggers
The FTC says if bloggers write about products, they must disclose if they received payments and/or freebies from a company for the write-up. If not, it's an $11,000 fine per violation. (The FTC's note about disclosure is here.)
This is a good thing.
With just about every survey in the world finding that the majority of people today trust what's said online forums more so than any other marketing platform, then it's in the best interest of the public to ensure that the system isn't rigged for positive or negative reviews. Anything else is just a form of fraud. Trust is the bloodstream of commerce, and online trust has become a central component to how billions of dollars are spent by millions of people every day.
The vast majority of people don't run stop signs, yet we still have laws against it. Every infraction isn't caught or punished, but STOP isn't a guideline or an industry-developed suggestion. This is a good example of protecting the many from the reckless few, just as the FTC's blogger rule is.
Teaching every blogger that it's against the law to accept payments or freebies for writing about products will help maintain a measure of trust in the online marketplace. It won't stop some bloggers from acting recklessly or fraudulently, but it will remove any ambivalence or doubt about its legality. That's a start.
More:
- John Moore notes the top-line takeaways on the WOMMA blog.
- Brian says on TechCrunch that disclosure "can only help brands and bloggers."
- Kate at ClickZ has a good write-up, including how a fine might be levied.
- Jeff Jarvis makes a First Amendment, let-the-marketplace-decide argument.
Other blogs that reference Yes on the FTC's disclosure rule for bloggers:
Good points here Ben. My view on this situation is that it is absolutely essential and, more than that, a great sign of the widespread acceptance of a new media type. For years blogs and user generated content has been marginalized by the established media. Nothing but good can come from this oversight and regulation.
Eric
Ben,
Good post. Where did you find the "$11,000 fine per violation" language? I haven't read the entire new FTC guide yet -- was it in there, and was this fine related specifically to bloggers?
Jeff -- The $11,000 fine was mentioned in the Times story. It's not easily findable in the FTC guide, unfortunately. The ClickZ story I added to the post gives a bit more explanation to how fines could be levied.
Why should these laws apply to only bloggers, and not anyone else who reviews products?
When will celebrities be included in laws like this by the FTC? They are given so many free products to endorse and carry on the red carpet. Most of the times, they are not just given these products, but are paid to carry them. It would seem that this is extremely dishonest, too.
