FTC take on the Internet Advertisers

Did you know there is an government department out there that is suppose to protect consumers? I didn't believe it either. Apparently a group called the "Federal Trade Commission" is suppose to protect consumers and acts as a "competition jurisdiction in broad sectors of the economy". Regulations usually come in bad forms such as the FCC that tries to get ride of Family Guy, but fails to do anything about Tool Academy or other crappy reality shows. Anyway, the Federal Trade Commission has decided that advertisers can no longer pay bloggers to just say that their product is good like it's an opinion. Bloggers will have to disclose who is paying for what. This is a good act, although regulating the Internet is pretty much impossible unless you have a single company controlling all the cool stuff (Google). Here is an except from the Federal Trade Commissions new rules.

"The revised Guides also add new examples to illustrate the long standing principle that “material connections” (sometimes payments or free products) between advertisers and endorsers – connections that consumers would not expect – must be disclosed. These examples address what constitutes an endorsement when the message is conveyed by bloggers or other “word-of-mouth” marketers. The revised Guides specify that while decisions will be reached on a case-by-case basis, the post of a blogger who receives cash or in-kind payment to review a product is considered an endorsement. Thus, bloggers who make an endorsement must disclose the material connections they share with the seller of the product or service. Likewise, if a company refers in an advertisement to the findings of a research organization that conducted research sponsored by the company, the advertisement must disclose the connection between the advertiser and the research organization. And a paid endorsement – like any other advertisement – is deceptive if it makes false or misleading claims." To see more head over to the FTC website.

Now that you have fallen asleep while reading the except...wake up with a dancing, rapping puppy:

(I have no idea what it's saying)

If you want more consumer affairs reporting head over to the Consumerist.com.





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