Monday, October 12, 2009

Bloggers and Online Reviewers Beware: New FTC Regulations Could Cost You Big

By Angela Atkinson

Writing reviews is bread and butter for some freelance writers. Whether you do it for the money or for the free products, it's important that you take note of new FTC guidelines for reviewing products.

Times, they are a changin' my friends.

On October 5, the Federal Trade Commission (FTC) released Guides Concerning the Use of Endorsements and Testimonials in Advertising, which puts strict new rules in place for writers who publish reviews and product endorsements.

The bottom line for online writers and bloggers is that, beginning December 1 of this year, they'll be required to disclose any connection they have to a product or service they review. So, if an advanced copy of a book is provided for a review, the writer needs to state that in the review. Or, if a company provides the writer with a product to try in exchange for a review, the writer has to disclose it.

So, essentially, in any case where the writer appears to endorse a product in any way, he or she must tell the reader how they're connected to that product. The writer should also disclose any payment, goods or services received in exchange for their endorsement.

And, if that isn't nerve wracking enough...there's always the fact that if these guidelines aren't followed to the letter, you may find yourself owing the FTC up to $11,000 in fines.

An interesting side note: newspapers and magazines don't seem to be directly affected by these new rules.

Why?

According to Publisher's Marketplace writer Michael Cader, "The main point of essence for book publishers (and book bloggers) is the determination that 'bloggers may be subject to different disclosure requirements than reviewers in traditional media.' They state that 'if a blogger’s statement on his personal blog or elsewhere (e.g., the site of an online retailer of electronic products) qualifies as an ‘endorsement,' due to either a relationship with the 'advertiser' or the receipt of free merchandise in the seeking of a review, that connection must be disclosed."

Knowing the rules is half the battle. Check out Galley Cat blogger Ron Hogan's take on this topic for more info. Or, feel free to read the entire FTC report, you know, at your leisure. ;) It's only 81 pages long, after all.

We'd love to know what our readers think of these new rules. What say you?
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5 comments:

Anonymous said...

Sorry, but I don't see this is being an onerous problem. So you have to mention as part of your review, "I received a free advance copy of the book for review." Yeah, and? This is so terrible? Do you think readers honestly believe that every blogger has the money to buy stuff to review? I don't agree with the different rules for traditional media, but I don't see it as being such a problem.

And frankly, if a blogger got more than just a free book (i.e. got paid to write a review -- I saw an offer like that on E-lance, with the notation that the person writing it shouldn't mention they were being paid), then I definitely want to know about such things.

Anne Cagle said...

I think a better way to approach this is to write product descriptions for a company where you do not have a by-line. You are not endorsing the product, just creating the advertisements.

Diane said...

Thanks for the info. I have just started getting offers to review things and want to do it right. :O)

Dave Freedman said...

What happened to "caveat emptor"?

I've been a journalist, writing book reviews, for 31 years. I always disclose any connection with the author or publisher. Many reviewers conceal such connections, which is sleazy and self-serving. But I don't want the government telling us we must disclose. It's still up to the consumer to investigate and be skeptical, whether they're buying books, services, or real estate.

Dave Freedman said...

I'd like to add one thought to my previous comment. Every piece of journalism present at least one point of view, sometimes biased. In some cases, a journalist advocates a position, even if he or she is not trying to promote a product or service. Should the journalist have to disclose any connection to any person that he or she mentions or quotes in any article or news report? Requiring disclosure in a review of a product or service is just one small step away from requiring disclosure in all forms of journalism.

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