Bloggers Beware: FTC Wants 11k For Blogger Payola Violations

Oct

6


payola2

I’ve saw this day coming. I just never thought it would come so soon. All the bloggers of the world have officially been put on notice. Take money for a music review, product placement, etc and get fined major $$$.

Per Econsultancy.com:

The Federal Trade Commission today announced the penalty for bloggers, celebrities and lay people who fail to disclose receiving payment for endorsements. Starting December 1, anyone who endorses a product, virtually anywhere, without disclosing brand relationships will receive a fine for $11,000.

In the 1980 version of the guidelines, advertisers could promote unusually positive or outlier experiences with a disclaimer like “results not typical.” But now, anyone who gets paid by a marketer and blogs about their product is considered to be a prodcut endorser. And could face a $11,000 fine.

But more likely, these fees will come back to brands sending out products and payments to people. That’s going to get increasingly difficult in a world where people want to spread good will about their products across platforms. Especially becase brands can’t be accountable for everything that consumers say about their brand.

The FTC wasn’t specific about how disclosures must be communicated but said its decisions would be made on a “case-by-case” basis.

ccording to Richard Cleland, assistant director of advertising practices at the FTC:

“In 1980 most of all advertising was disseminated by the advertisers themselves; today a good part of that advertising is being disseminated by users.”

Joe Chernov, VP-communications for word-of-mouth marketing firm BzzAgent, tells AdAge:

“If a consumer’s speech has been materially influenced by a marketer, it must be disclosed. That speech, the consumer’s speech, also must be restricted to their own personal experience.”

This is insane! Let me let this marinate before I comment. But what do you think? Should bloggers be penalized for expressing their views or opinions on a particular brand?

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3 Responses to “Bloggers Beware: FTC Wants 11k For Blogger Payola Violations”

  1. [...] This post was mentioned on Twitter by Alex Delarge and clearcomwireless.com. clearcomwireless.com said: RT @GYANTUNPLUGGED: Bloggers Beware: FTC Wants 11k For Blogger Payola Violations http://bit.ly/1BXCSZ [...]

  2. isiswisdom says:

    This is some bullshit right here. There is to much dictating going on man what the hell. Anything to keep track of your spending and how much money you make. Greedy bastards.

  3. fym84 says:

    I agree hat this is bullshit.
    How u gon go halfway when it comes to the system called payola?
    If they’re going to counter it they should go full circle, not halfway.
    Look @ the radio. Fine them!

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