Senate Panel Probes Paid Blogger Problem
Cable television, the Internet, cellular phones and other handheld electronic devices have provided new opportunities for techniques like viral and word-of-mouth marketing that add new complexities to the government's job of monitoring deceptive advertising, FTC Consumer Protection Bureau Director David Vladeck told the Senate Consumer Protection, Product Safety, and Insurance Subcommittee on Tuesday. "We are continually learning about new and creative methods to get promotional messages out to consumers," he said at a hearing that covered issues ranging from false claims in weight loss promotions to bloggers who are paid by advertisers to endorse certain products.
National Consumers League Executive Director Sally Greenberg said blogging, by its nature, has encouraged an explosion of discourse about practically every product available -- but the FTC needs to crack down on those who are cash in by writing favorably about a product. Marketers frequently fabricate "spontaneous" Internet "buzz" around products and services by paying for endorsements by influential bloggers and celebrities, she said. "As with any emerging means of communication, 'rules of the road' must govern to protect against deceptive advertising," she added. The FTC has proposed requiring consumer-generated media outlets to disclose a financial relationship with a product. Read more about this topic in CongressDaily's PM Edition (subscription required).
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