Skip navigation


Current DateTime: 08:38:49 24 Nov 2009
LinksList Documentid: 24355697
  • Runway Angels

      The superbowl of fashion shows, models walk down the runway at the 2009 Victoria's Secret Show.

  • Smartphone Guide

      Here's a need-to-know guide to nine devices, based on features, price, network and platform.

  • Wines for the Holidays

      Not quite sure what wine to pair with Turkey or Creme Brulee? Our experts do.

FEATURED QUIZZES


Current DateTime: 08:38:49 24 Nov 2009
LinksList Documentid: 33793611
  • A Healthier & Wealthier You

      Take the following quiz and find out how much you know about the impact of obesity on the health of the U.S. economy.

  • The Billionaire BFF's

      Philanthropists. Bridge partners. Hockey players. Which responses are based on facts from Buffett's and Gates' real lives?

  • The Many Myths of Coca-Cola

      Can you tell which statements are true, and which ones are just rumors?


Current DateTime: 08:38:49 24 Nov 2009
LinksList Documentid: 24890560
  • Winterizing Your Portfolio

      If 2009 was the winter of our discontent, will 2010 be a winter wonderland for investors? A lot depends on the recovery—or lack thereof.

  • Investor's Guide to Real Estate

      Some even say the long-awaited recovery is here. Regardless, buyers and sellers alike can profit from our guide.

  • Alternative Investing

      Stocks and bonds? Sure. But it's a big world out there for investors.

powered by digg
Soon, Bloggers Must Give Full Disclosure
Published: Tuesday, 6 Oct 2009 | 12:21 PM ET
Text Size
By: Tim Arango
The New York Times

For nearly three decades, the Federal Trade Commission’s rules regarding the relationships between advertisers and product reviewers and endorsers were deemed adequate. Then came the age of blogging and social media.

Close up of someone typing on a laptop.

On Monday, the F.T.C. said it would revise rules about endorsements and testimonials in advertising that had been in place since 1980. The new regulations are aimed at the rapidly shifting new-media world and how advertisers are using bloggers and social media sites like Facebook and Twitter to pitch their wares.

The F.T.C. said that beginning on Dec. 1, bloggers who review products must disclose any connection with advertisers, including, in most cases, the receipt of free products and whether or not they were paid in any way by advertisers, as occurs frequently. The new rules also take aim at celebrities, who will now need to disclose any ties to companies, should they promote products on a talk show or on Twitter. A second major change, which was not aimed specifically at bloggers or social media, was to eliminate the ability of advertisers to gush about results that differ from what is typical — for instance, from a weight loss supplement.

For bloggers who review products, this means that the days of an unimpeded flow of giveaways may be over. More broadly, the move suggests that the government is intent on bringing to bear on the Internet the same sorts of regulations that have governed other forms of media, like television or print.

“It crushes the idea that the Internet is separate from the kinds of concerns that have been attached to previous media,” said Clay Shirky, a professor at New York University.

Richard Cleland, assistant director of the division of advertising practices at the F.T.C., said: “We were looking and seeing the significance of social media marketing in the 21st century and we thought it was time to explain the principles of transparency and truth in advertising and apply them to social media marketing. Which isn’t to say that we saw a huge problem out there that was imperative to address.”

Still, sites like Twitter and Facebook, as well as blogs, have offered companies new opportunities to pitch products with endorsements that carry a veneer of authenticity because they seem to be straight from the mouth — or keyboard — of an individual consumer. In some cases, companies have set up product review blogs that appear to be independent. One such case involved Urban Nutrition, a seller of supplements, that ran Web sites like WeKnowDiets.com and GoogleDiets.com. The National Advertising Review Council, which governs the industry’s self-regulatory programs, said the sites were “formatted as independent product-review blogs.”

Jonathan Zittrain, a professor at Harvard Law School and co-founder of the Berkman Center for Internet and Society, said, “the rules are looking ahead to a quite possible future when there is a market to buy ‘authentic’ public endorsements.”


Current DateTime: 08:38:49 24 Nov 2009
LinksList Documentid: 22528754

Some marketing groups fought the changes. “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,” said Linda Goldstein, a partner at Manatt Phelps & Phillips, a law firm that represents three marketing groups, the Electronic Retailing Association, the Promotion Marketing Association and the Word of Mouth Marketing Association. “In terms of the real world blogging community, that’s a seismic shift.”

Ms. Goldstein added, “We would have preferred the F.T.C. to work closer with the industry to learn how viral marketing works.”

The new guidelines were not unexpected — the commission gave notice last November that it would take up the matter. They will affect scores of bloggers who began as hobbyists only to find that companies flocked to them in search of a new way to reach consumers.

About three-and-a-half years ago Christine Young, of Lincoln, Calif., began blogging about her adventures in home schooling. It led to her current blog, FromDatesToDiapers.com, about mothers and families. The free products soon started arriving, and now hardly a day goes by without a package from Federal Express or DHL arriving at her door, she said. Mostly they are children’s products, like Nintendo Wii games, but sometimes not. She said she recently received a free pair of women’s shoes from Timberland.

Ms. Young said she had always disclosed whether or not she received a free product when writing her reviews. But companies have nothing to lose when sending off goodies: if she doesn’t like a product, she simply won’t write about it.

“I think that bloggers definitely need to be held accountable,” said Ms. Young. “I think there is a certain level of trust that bloggers have with readers, and readers deserve to know the whole truth.”

This story originally appeared in the The New York Times
Add This share icon
Text Size
  • digg share

CNBC HIGHLIGHTS

  • Warren Buffett and Bill Gates discuss the economy and other subjects with CNBC's Becky Quick.
  • …you'll want to be prepared. Tips for getting the most out of the post-Thanksgiving shopping frenzy.
  • A new McDonald's in Manhattan is the nation's first to sport a sleek, chic interior imported from stores in London and Paris.
  • One shopper explains why he gets up at 3am on the day after Thanksgiving to go shopping every year.
  • A diet high in fat and sugar might actually be good for your portfolio.
  • From the AIG&T to the Merrill Lychee, Jane Wells lists this year's holiday cocktails.
ADD COMMENTS
Remaining characters


Current DateTime: 05:23:04 24 Nov 2009
LinksList Documentid: 29778428

Current DateTime: 01:02:05 24 Nov 2009
LinksList Documentid: 29779196

Current DateTime: 01:09:37 24 Nov 2009
LinksList Documentid: 29779199

Current DateTime: 07:49:43 24 Nov 2009
LinksList Documentid: 29779198
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters