FTC requires disclosures from bloggers on gifts, pay

Attention bloggers: If you write about something you received free and you don't disclose the giveaway, get ready to cough up $11,000 in fines.

The Federal Trade Commission issued new rules Monday requiring people who author Web logs to disclose freebies or payments they receive for blogging, even if it's in a 140-character Twitter message about a product.

"People will have to devote some of those 140 characters to disclosing they got something for free," said Richard Cleland, a spokesman for the FTC.

In reality, fines would be levied only in extreme cases to deter repeat offenders, Cleland said. The FTC is not looking to regulate every blog in America but to focus on advertisers. Common sense should prevail among bloggers, he said.

The rule change extends fair disclosure rules that already apply to television, radio and magazines. Now they apply to the Internet - even individual mommy blogs, where readers look for objective reviews from other moms.

"There are bloggers who just get streams of products for free," Cleland said. Not only are those relationships seldom disclosed, but "they're from companies who say, 'Will you please write about this,' and it's understood that if you say something bad, that stream will stop."

The new rules take effect Dec. 1.

How it would work

The FTC stopped short of saying exactly how bloggers must disclose freebies or relationships with advertisers. But the change lands smack in the middle of a hot debate among full- or part-time bloggers about how to handle freebies and advertising.

"This is just the Wild West we're living in now," said Caroline Jorgensen of Wesley Chappel, who writes the Morningsidemom.com blog about parenting in the Bay area. "There have been no rules or guidelines about how PR people work with us or how we're perceived by companies, readers, what rights we have, or freedom of the press."

So bloggers have been making it up as they go along, she said.

For instance, a promotions company gave Jorgensen free tickets to the U2 concert in Tampa over the weekend and a Flip video camera to record it, partly in exchange for writing about the show in advance and about a charity project related to the show.

"It's my wedding anniversary that weekend, so I was thrilled, but I told them I'd have to have full rights to say whatever I want," she said. She also made it clear she would include a disclosure on how she received the tickets.

Blog power

Handing out free products to bloggers is a standard buzz-building tactic among consumer goods companies, video game makers, stroller manufacturers, movie companies and any other company offering something to sell.

Bloggers provide a powerful venue for building word-of-mouth advertising to amplify national advertising campaigns. Companies often send products to bloggers long before they are nationally available to help build buzz.

Further, blogger articles live long lives online, meaning consumers who search online for "diapers" or "U2" will see blogger reviews in their search results, providing them what might appear to be an unbiased review.

Bias is the issue the FTC finds important.

Cleland said bloggers probably will be on solid ground if they simply use language in a post that reads something like, "This company sent me a sample to try, and here's what I think."

Maria Mora of Tampa, who writes the MommyMelee.com blog, said she thinks the blogging world will absorb the rules well and, in any event, "failing to disclose really kills a blogger's credibility. When it comes to product reviews, authenticity is key. Readers are smart, and I don't think we always give them enough credit."

Disclosure doesn't always mean a post is unbiased, she said.

"Unfortunately, a blogger can say, 'I received this for free' and can still post a totally bogus, vapid review."

Authority

The new rules derive from the FTC's authority to regulate some aspects of advertising. For instance, FTC rules are the source of the now-ubiquitous "results not typical" caveat in advertisements for diet potions.

The FTC will take a case-by-case approach to bloggers, but it says "the post of a blogger who receives cash or in-kind payment to review a product is considered an endorsement. Thus, bloggers who make an endorsement must disclose the material connections they share with the seller of the product or service."

That's a good thing, some bloggers say.

"A lot of bloggers get tons of freebies and never disclose anything," said Kelby Carr, who manages more than 50 moms who contribute to her TypeAmom.net collection of mom-centered blogs.

Carr said she asks her bloggers to disclose with every article how they receive products to review.

This summer, one prominent mom blogger, Trisha Haas of Momdot.com, called for a PR agency boycott, partly because agencies can be too persistent in pitching ideas and partly because too many mom bloggers lose their focus on motherhood.

For bloggers who feel singled out, there's some solace.

Celebrities must pay attention, too.

The new rules "make it clear that celebrities have a duty to disclose their relationships with advertisers when making endorsements outside the context of traditional ads, such as on talk shows or in social media," the FTC said.

That means any Hollywood actress who chats on the radio about her new lipstick or cell phone must say she got it free.