FTC Forces Bloggers to Reveal Payment for Endorsements

After not updating its endorsement rules in three years, the Federal Trade Commission issued new regulations Monday that for the first time require blogs offering reviews and endorsements to disclose when such promotion is done for payment. Under the new rules, a blog could face an $11,000 fine each time it endorses a product or service without revealing that it has been paid by the company or individual promoting the product.

Consumer advocates say the new regulations will make it easier for consumers to tell the difference between sponsored sales pitches and objective writing in an age when social media have blurred the lines between marketing and journalism. "Given that social media [have] become such a significant player in the advertising area, we thought it was necessary to address social media as well," said Richard Cleland, assistant director for the division of advertising practices at the FTC.

Bloggers had mixed reactions to the FTC statement. Some said they already make such disclosures and that they believe blogs should be up-front about receiving payments and "freebies" from marketers. Others noted that with millions of blogs, the rules would be nearly impossible to enforce broadly. Galley Cat, the book industry blog of the popular journalism hub MediaBistro, posted a list of potential dilemmas that could arise under the new rules.

FTC Sets Endorsement Rule for Blogs [Washington Post]