FTC mulls disclosure rules for bloggers

Photo: Thom Stratton

According to an article in Parade magazine, the Federal Trade Commission is considering updating its endorsement guidelines to require people who write about products or services online to disclose if they get paid for to do so. The article cites a situation where a representative of a company paid people to write rave reviews for their products on Amazon.com.

The updates may also apply to affiliate marketing, an internet staple where web site owners can get paid a commission when visitors follow a link to a merchant's site where they can buy merchandise or services. According to an AP article by Deborah Yao, those merchants could be held responsible for the behavior of their representatives, whether official sales teams or affiliate sites and bloggers.

Opponents argue that any changes are unnecessary because existing laws already cover deceptive marketing practices. Martin Johncox of Alexander & Associates, a Boise marketing and PR firm, suggests that the fact that people get caught shows that the system already works. He is also a strong believer in disclosure. "As a matter of credibility, in electronic media, you should disclose who you are paid to represent." Johncox says. "I do this for the Twitter accounts and Facebook pages I administer."

Johncox admits that disclosure is already a habit for him, thanks to his previous experience in journalism. However, he feels that being open about who we are is good practice for anyone online. "In fact," he says,  "as a PR professional, it helps me and my clients for people to be able to connect the dots. Disclosure should be something we embrace, because it's good for the client, the public and the communicator." Because he discloses who is is, for example, potential clients can associate him with his work, potentially bringing him new work.

Blogging and other forms of online communication are new, and are still blazing new trails in the realm of legality and ethics. Many bloggers, who see their blogs as personal diaries, or who write only for their families and friends to read, may not stop to consider the ethical considerations in what they do. There is, according to the AP's Yao, already a movement online for bloggers and others to police themselves and adopt certain ethical standards.

Consumers, too, can take precautions to avoid being taken in by paid endorsements. There is no reason to assume that people are more honest online than they are in real life. Speaking to Parade magazine, Paul Rand, president-elect of the Word of Mouth Marketing Association recommended consumers take time to check out those who publish reviews online. A simple Google search for other reviews by a given person can quickly reveal if this person is fair, or if they always give good reviews for certain companies' products.

It may be too late, however, to avoid regulation. The FTC is expected to release new rules this summer. Depending on the changes they make, the internet may never be the same.

 For more info: For a full transcript of my conversation with Martin Johncox, click here.