FTC: Bloggers Must Disclose Product Ties
Starting Dec. 1, bloggers, online marketers and others will have to inform consumers when they are paid or given free products to write positive reviews, the FTC said Monday in updated guidance for advertisers on how to keep their endorsements and testimonials in line with federal law. Under a 1980 rule, advertisers were allowed to describe unusual results in a testimonial as long as they included a disclaimer such as "results not typical." The revised version no longer contains that safe harbor.
The FTC also added new examples to illustrate the long standing principle that "material connections" 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. 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, the agency said.
Celebrity endorsers also are addressed. While previous guidance did not explicitly state that endorsers as well as advertisers could be liable under the FTC Act for statements they make in an endorsement, the revised language reflects Commission clearly states that both advertisers and endorsers may be liable for false or unsubstantiated claims made in an endorsement. Celebrities also have a duty to disclose their relationships with advertisers when making endorsements on talk shows or in social media.
Read more from the FTC press release here.
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