In This Corner: New federal blogging regulations mandate disclosure
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share thisDo you tweet or blog about products you receive for free or on behalf of your company?
Then you'll want to make sure that disclosure is your middle name come December. The Federal Trade Commission is updating its act regarding endorsements and testimonials in advertising, which will go into effect on Dec. 1, a guide that has not been revised since 1980.
Some of these revisions target social media, specifically blogging, which has become a channel for marketers to garner positive reviews and product recommendations for their clients that may (or may not) sway consumer purchasing decisions.
Why would something that is otherwise known as word- of-mouth marketing cause the FTC to hone in their focus on bloggers? Unfortunately, it is in part because of unethical behavior and the lack of disclosure over what is considered "product in kind" and pay for post. One such example of unethical behavior can be seen via "flogs." A flog, or fake blog, is considered a first-person advertorial written in a way that makes it look like an authentic story, presented in a format similar in look and function to a blog.
Back in 2006, both Wal-Mart's public-relations firm and Sony PlayStation Portable's marketing agency were outted for their flogs. Most recently would be the flogs promoting Acai Berry products. Maybe you've seen them or have fallen victim to them yourself? Well then let me be the first to tell you that, no, Oprah did not endorse Acai.
As companies large and small bring their marketing strategies into the world of social media, bloggers have been on the receiving end of product pitches from PR firms or from the brand marketers themselves.
The influence that bloggers can have on their readership is widely recognized and in the offline world would simply be considered as a product referral. While pitching product stories and offering these same products for free to editors of print publications and broadcasters is nothing new, asking for full disclosure on the relationship with a brand is, especially when that disclosure is specifically aimed at bloggers.
As a blogger myself, I welcome disclosure, however the uproar from the blogging community has been with Section 1, Subsection C of the FTC release that states, "Traditional news-gathering organizations are exempt." The bottom line? Traditional media do not need to disclose, but bloggers do. The sentiment among the blogosphere is that this exemption is hypocritical.
The FTC has also left a gray area in regard to the possibility of an $11,000 fine for bloggers who do not disclose their relationship with a brand. However, they have yet to say how they want bloggers to disclose this information (e.g., in each post, on a disclosure page, just say "free" ). According to Richard Cleland, assistant director, division of advertising practices at the FTC, violations will be looked at on a case-by-case basis.
In response to blogger concerns, Mr. Cleland was recently quoted on Fast Company's blog as saying, "There's no monetary penalty, in terms of the first violation, even in the worst case." This has left the blogosphere scratching its collective head and wondering when and how the $11,000 fine comes into play.
Weeding out those with a questionable agenda or those who mislead consumers is good for the blogging community as a whole, but how it will be enforced with such murky guidelines is questionable. It'll be interesting to see who the FTC marks as the first violator and if it will bring to light more questions or merely set the precedent for what is to come. However, one thing is for certain, many are wondering if the FTC guidelines are just the beginning of the regulation of social media.
Shannon Nelson is a veteran beauty blogger who has been writing A Girl's Gotta Spa at www.agirlsgottaspa.com/blog since 2005. Her expertise and knowledge of social media have led her to be a consultant to many reputable beauty and lifestyle brands for their social media strategies. She has also been a guest speaker at notable beauty industry events, such as the HBA Expo and Cosmoprof North America. She lives in Lake Ariel with her four sons. IN THIS CORNER features commentary by guest columnists. Send ideas to jmatthews@timesshamrock.com.
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