06.24
The FTC is looking to expand it’s coverage into into the blogosphere. With bloggers writing reviews and talking about products out there, along with the huge push for creating the next viral marketing campaign, the FTC sees the internet as the wild west, and they are running for sheriff.
“Savvy consumers often go online for independent consumer reviews of products and services, scouring through comments from everyday Joes and Janes to help them find a gem or shun a lemon.
What some fail to realize, though, is that such reviews can be tainted: Many bloggers have accepted perks such as free laptops, trips to Europe, $500 gift cards or even thousands of dollars for a 200-word post. Bloggers vary in how they disclose such freebies, if they do so at all.
The practice has grown to the degree that the Federal Trade Commission is paying attention. New guidelines, expected to be approved late this summer with possible modifications, would clarify that the agency can go after bloggers — as well as the companies that compensate them — for any false claims or failure to disclose conflicts of interest.
It would be the first time the FTC tries to patrol systematically what bloggers say and do online. The common practice of posting a graphical ad or a link to an online retailer — and getting commissions for any sales from it — would be enough to trigger oversight.” Via Yahoo
By reading this, it would seem that I would be in trouble for a couple of reasons. First, I don’t disclose specifically that the link to 1and1 listed below, is the referral link that they provide, and as such, I receive commission on anybody who clicks and signs up. Likewise, when I like to an item on amazon, if you buy the item, I make a small commission on it. By not disclosing this, it would appear that I would be running afoul of the new laws.
“The main target of the new guidelines appears to be the widespread practice of viral marketing in which companies recruit non- employees to talk up products in exchange for samples or promotions.
Companies regularly offer free samples and concert tickets to bloggers and journalists, in the hope of generating press. However, determining which bloggers are acting as an agent of a company may prove difficult.” Via Ideas That Spread and Financial Times (free registration required)
Aside from my main complaint of not getting any free stuff myself, I think that this would pretty much kill viral marketing. The point of viral marketing is that it’s not supposed to look like an ad. Sometimes it’s artfully done, other times, you wind up with the alliwantforchristmasisapsp. Did the government need to step in and curtail Sony’s advertising machine? No, The market did that all on it’s own when they decided that it sucked, and found out that it was placed online by Sony themselves. Likewise, people who do nothing but act as mouthpieces for companies and marketing firms tend to not have popular blogs. People will go to the places where they know and trust any reviews, or will read multiple reviews on a product prior to purchasing.
Another interesting question that this would bring up, are what about sites that allow users to submit reviews, such as Amazon, or where people can leave comments on articles? Am I to be held liable for any comments left on my blog because I didn’t verify wether or not the person leaving them is a corporate shill? Will Amazon have to remove their user reviews in fear of FTC attacks?
In truth however, I don’t really see the FTC as being able to do much. First, with the growth of web2.0, and the millions and millions of blogs out there, just exactly how are they going to police everything? Second, the more that they crack down on bloggers here, the more bloggers will start looking for hosts on foreign servers where the FTC is powerless. And third, really, where the hell is my free stuff?