The Federal Trade Commission (FTC) announced this week that it would be policing blogs and social media for the first time, cracking down on “reviewers” and advertisers who fail to provide full disclosure in endorsements, sparking intense outrage among the regulated. Violators can be subject to $11,000 fines per infraction.



”Given that social media has become such a significant player in the advertising area, we thought it was necessary to address social media as well,” explained the FTC’s assistant director of advertising practices Richard Cleland, describing the agency’s first overhaul of its endorsement policies in almost 30 years. The proposal was adopted with the unanimous approval of all four commissioners.



More than 80 pages of confusing new rules will now govern bloggers’ and even social media users’ activity. If they are paid to write an endorsement, or even if they receive an item for free and then write about it, everything must be noted “clearly and conspicuously.” There are also provisions mandating that people disclose any “material ties.”



When companies give a reviewer a product to write about, they “should have procedures in place to try to monitor his postings for compliance,” explains an example provided in the FTC rules. How should people know whether the FTC will consider something an endorsement? According to the regulations: “The facts and circumstances that will determine the answer to this question are extremely varied and cannot be fully enumerated here …”

Source: JBS.org