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For example, I was given a book at a conference. I later decided to review the book. Since it was a freebie (although the author & publisher were unaware I review books), do I need to disclose that I didn't pay for it? I know this is peanuts compared to people who get paid per post but my point is that just because I was given the product doesn't constitute an endorsement. In fact, they might not have given me the book if they'd known I was going to review it!
just my opinion.
I have a question though. If I get a free product, like a free game, does that count? Would you have to disclose that?
That's been the key message for WOMMA, Social Media Business Council, the 4A's, the ARF, and others for years. Disclosure isn't hard. Now it's no longer optional.
Disclosure: I used to work for both WOMMA and the Social Media Business Council (when it was called the Blog Council). This is my own opinion.
For example the 'Anti-Cyber Squatting Act' has seen Canadian companies suing Canadian citizens under US law because the servers that were used (to perform domain registration in this example) resided on US soil. So the digital question that is yet to be answered is, 'if the internet traffic relevant to the blog posting moves through US based servers' then must you comply with this and other US law?
Based on history I would suggest yes!
Better to be safe and post to a UK site.
Also I would like to add, it is actually on an ethical side to post disclosure if you're receiving anything in return for your posts. I would be downright angry if I found that a review I thought I could trust, violated my trust with a biased opinion that I wasn't told about.
Just my two cents.
Also, what if I just happen to really, really, really like... say... HP Slimline PCs?
And is it per post or does a sitewide disclosure policy work?
They should fine the company and not the blogger. I wonder if this will effect affiliate marketers too.
I guess I'll have to use a Canadian address for my blogs.
Disclosure: I am an Amazon affiliate. Thanks.
Also, a point that was brought up at the Type-A Mom Conference Blogger Town Hall meeting... it does totally suck for those of us who do product reviews when we want to talk about something we bought with our own money. We feel like we need to disclose when we HAVEN'T been compensated to write about a particular product or service so that we don't get smacked down for writing something of our own accord.
Two sisters in particular with a huge fan base made up of naive preteens have been lying to them about getting paid to review products by companies and also when they get free products.
There is proof that they get paid for reviews and to this day they constantly come out and LIE saying "Ive never been paid!"
Theres a blog out there discussing them.
http://thettruthabouteb.blogspot.com/2009/07/th...
My one question now is, do you have to disclose the exact dollar amount if actual cash changed hands? I've already heard one person interpret these guidelines this way on twitter this morning.
"Content posted to this blog is in no way an endorsement for the product or service and may result in compensation from the vendor."
I wonder if this will be sufficient.
Question: does this affect affiliate programs?
ex. I use TweetSpinner. I am an affiliate. In a post I have recommended TweetSpinner and the link has my affiliate information. You sign up. I get paid.
OR, I am an Amazon Associate, I recommend a book and link an image of the book to my Amazone Associate account - thusly I get paid for the book.
I can't find details on HOW the disclosure must take place; cuz I'll just put it on a tiny page with only one link to it.
I don't think the ruling is a bad idea, but it will need to be clarified.
The biggest issue I have is more with the companies who are "paying" for product reviews. I'm a bargain blogger and am often solicited to write a review for, say, a bag of granola, and all I get for doing the review is a bag of granola.
I typically choose not to do those types of reviews, but know a lot of bloggers who do - and to the companies who solicit those types of reviews with that type of compensation, I have to ask if *I* can be fined upt o $11,000 based on how I write the review, shouldn't I be compensated with more than a free bag of granola?
Of course, that's up to the bloggers who choose to do reviews for a free bag of granola. But it seems like the stakes were just raised, and both bloggers and the companies soliciting reviews need to think about the gravity of what they are doing - they could pay big time if they mess up.
And what if I then give the body wash away? That whole nonsense about this not being an offense if you do not keep the item you received is really confusing.
I never get free goods for reviews, so no biggy to me :(
but it seems like a lot of cash for paid reviews to bloggers, who would think of going after the big advertising firms where 11k isn't much to them.
Does anyone have an example of an all-inclusive disclosure statement which I can put within the footer of my blog?
Here's my attempt...
"Content posted to this blog is in no way an endorsement for the product or service and may result in compensation from the vendor."
Is this going to be sufficient for the FTC?
This is why you sometimes see full-page/multi-page "articles" in print with "Advertisement" at the top of each page ... because the articles are, in truth paid advertisements. Does the fact that someone gets paid - either with cash or free product - influence your purchasing decision?
Yes. It does. And hence the ruling.
When a celebrity does a commercial we all know he or she is getting paid ... right? Yet the celeb doesn't have to say "I'm being paid to endorse this product."
Why can't the readers of blogs just be smart enough to understand that bloggers get paid?
Government overkill yet again. Ain't government just grand?
* If you're in a referral group and you give a referral, do you now have to disclose that you get referrals from the people you're introducing?
* Suppose you're my next-door neighbor. Suppose you own a great little restaurant. Suppose you watch out for my dogs or keep an eye on my place when I'm away. Suppose I tell people how much I like your food. Must I now disclose that you keep an eye on my house now and then?
Those are just two of a thousand way-out-there scenarios that will never end, so long as you attempt to solve this problem by passing laws to regulate the people who are saying "X product is great."
However, if the potential buyers who are listening to those who say "X product is great" simply take ownership of their own actions, this problem no longer exists.
I'm a zealot for promoting honesty and transparency in sales. But you simply can't solve the dishonest problem unless BUYERS take ownership of their own actions as well.
What happened to grain-of-salt intelligence? Let's sprinkle some of that on this problem and it will go away forever.
"mint was great.... etc.... disclosure, I received free services/product in kind from mint" or
"facebook connect integration for twitter is useful for.... disclosure, I receive free service from facebook and twitter"
free services are still services in kind. where does it end?
Those thinking it's not a big deal remember that viral campaigns exist and can often build very quickly. Don't you think your perception of a review would change if you knew the blogger got the product for free to keep? Like a $300 gadget?
This will also impact ads like the Microsoft "I bought a PC" ad where the people are actors etc. There's more to it than blogging.
Also I don't understand why all print, online and broadcast news wasn't included? Plenty of newspaper reviewers get free stuff all the time.
The Guides are administrative interpretations of the law intended to help advertisers comply with the Federal Trade Commission Act; they are not binding law themselves. In any law enforcement action challenging the allegedly deceptive use of testimonials or endorsements, the Commission would have the burden of proving that the challenged conduct violates the FTC Act.
Betsy Lordan
Office of Public Affairs
202-326-3707
STAFF CONTACT:
Richard Cleland
Bureau of Consumer Protection
202-326-3088
(FTC File No. P034520)
(endorsement testimonial guide.wpd)
We've already seen this happen with the massive regulations on political speech. In many states, including my own Colorado, ordinary people cannot speak out about candidates or ballot measures due to very confusing disclosure laws enforced by heavy fines.
Now the federal government plans to threaten bloggers with massive fines based on the whims of bureaucrats -- who will soon, I guarantee you, write pages and pages of uber-dense and convoluted rules about what counts as "a review" or "payment" and the required form of the disclosure. Soon, almost any speech about a product will be regulated. Oh, how the large producers of crappy products will love that! They'll soon be lobbying the government for further restrictions and regulations.
The inevitable result will be that many honest bloggers will stop discussing products entirely -- or they'll stop blogging. Seriously, how many bloggers make enough money to cover the potential fines? How many bloggers will have the time and the fortitude to read through all the regulations, to know whether they're complying or not with them? Many other people will not start a blog; it would be too much trouble -- and too risky.
Gee, do you think that will benefit consumers? Do you think the result will be better information about products on blogs? Of course not!
Do not be surprised by that. In fact, the aim of the government is not to protect us from those few dastardly reviewers who accept money on the side in exchange for positive reviews. The aim of the government is to control what we think and what we do by regulating the marketplace of ideas to its death. They're doing an excellent job of that -- and most Americans are blind to the danger.
Folks, this ruling is very, very dangerous. Make a stink, if you care for your freedom.
I've known for a long time what government is about. What is shocking me is what it seems my friends and neighbors and countrymen are about.
And Mr. Ostrow -- It is arbitrary and undefined for a reason. It isn't a mistake. Why make it clear what you can and cannot say, when it is simpler to make people afraid to say anything?
I like the idea, but it needs to be more black and white.
FTC told CNN, they have nobody assigned to enforce this. The honest folks stay honest and the rest of us, are scamps and scalawags and scoundrels.
SEND ME FREEBIES, STAT!
From Wikipedia--"The phrase "The pot calling the kettle black" is an idiom used to accuse a person or thing of being marked with or guilty of the very thing they are pointing out; in this interpretation, it is shown that there is something shared. This may, or may not be hypocritical or contradictory." I guess you be the judge of that.
http://paulbuijs.com/343/looming-ftc-discolure-...