FTC Warnings to Bloggers, Other Internet Writers
New Guidelines Require Endorsers To Disclose Any Gifts or Payments
Oct 10, 2009
It took a while, but in October 2009 the FTC approved rules specifically covering some segments of the hitherto unsupervised world of online writing. The FTC did so by including the Internet in its revision of the 1980 "Guides Concerning the Use of Endorsements and Testimonials in Advertising."
The new transparency guidelines go into effect December 1, 2009.
Safe Harbor Disclaimer Disallowed
In addition to requiring disclosure of material connections between endorsers and companies, the revised guidelines negate a “safe harbor” disclaimer that advertisers have used since 1980. The simple disclaimer has allowed companies to advertise unusual product results as long as they included a disclaimer such as “results not typical.” That will no longer be sufficient transparency.
According to an FTC news release describing the new guidelines, “advertisements that feature a consumer and convey his or her experience with a product or service as typical when that is not the case will be required to clearly disclose the results that consumers can generally expect.”
The new rules might remind consumers of the side effects that companies must disclose when advertising drugs.
Guidelines Interpret Federal Trade Commission Act
Although bloggers and other online writers are put on notice that they must disclose any material connections with companies or products they endorse, the guidelines themselves are not laws. They are published by the agency to help advertisers interpret the Federal Trade Commission Act. If a case goes to court, the agency bears the burden of proving a violation of the act
Also, an FTC official said earlier in the year that the agency has no plans "to open up an Internet blogging monitoring campaign." Doing so might bog down the agency for years.
Enforcement agencies facing such a dilemma would more likely respond to complaints and try achieving compliance by getting tough in a few high profile cases. FTC said decisions “will be reached on a case-by-case basis.”
Bloggers May Share Liability
The revised guidelines also:
- Require companies to disclose connections with research organizations they hire to research their products.
- Point out that both endorsers, as well as advertisers, may be liable for false or unsubstantiated ad claims and for failing to disclose material connections to each other.
- Make it clear that celebrity endorsers are expected to disclose their relationships with advertisers when making endorsements on talk shows, in social media or on other occasions “outside the context of traditional ads.”
After the agency published the proposed guidelines earlier in 2009, it received numerous comments saying the new rules were not necessary and would restrict freedom of speech and that bloggers and advertisers can police their own professions.
The revised guidelines, which are available on the FTC website, could have a significant impact on the Internet.
Self Regulation of Internet Behavioral Advertising
FTC May Investigate Bloggers for Graft
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