For First Time, FTC Goes After Bloggers for Paid Endorsements

I've written quite a bit in the past about the Federal Trade Commission's enforcement of its guidelines for testimonials and endorsements, which require disclosure of any payment or benefit that endorsers receive for their endorsements.

Until now, in the online realm the FTC has only pursued advertisers who have offered inducements to bloggers and others for endorsements without telling them to disclose the relationship. But now the FTC has gone after two video bloggers themselves for failing to reveal their connections to a web site that they endorsed, and has sent warning letters to individuals who posted endorsements on Instagram without revealing that they were compensated.

FTC Issue on the Amazon Vine

NPR has a story on Amazon's Vine program, in which top reviewers receive free products to review from manufacturers. Does this program run afoul of the Federal Trade Commission's blogger endorsement rules, which I've written about in the past?

Blogging For Swag Persists Despite FTC Rules

A recent New York Times article examines celebrity endorsements of products and services without disclosing when the celebrity has a financial interest in what s/he is endorsing, which may run afoul of the Federal Trade Commission "Guides Concerning the Use of Endorsements and Testimonials in Advertising," which generally require that "endorsers" may be liable for civil penalties if they make false or unsubstantiated claims about a product or fail to disclose "material connections" between themselves and an advertiser.

Another Challenge for the FTC

The New York Times reports that a retailer of cases for the Kindle Fire offered customers a complete refund to purchasers in return for a posting a review on Amazon about the product.

FTC Punts Again

Just before the holidays, a post on the Federal Trade Commission's Bureau of Consumer Protection Business blog highlighted a staff letter announcing a decision to not pursue charges against Hyundai Motor America over a campaign in which bloggers were offered gift certificates for linking to the company's videos or commenting on its Superbowl ads, without telling the bloggers that they are required to disclose the incentives under the Commission's "Guides Concerning the Use of Endorsements and Testimonials in Advertising."

The Dragon Tattoo and the FTC's Taboo

Some of the usual sources for film and media insiders -- Indiewire; The New York Times "Carpetbagger" blog; NPR's "Monkey See" blog; the "All Things Digital" blog; and the Poynter Institute site formerly known as Romenesko -- are buzzing over film critic David Denby's review of “The Girl with the Dragon Tattoo” in the latest New Yorker magazine.

Two Online Marketing Bungles

Two recent developments show that marketers who attempt to use pranks as part of their online marketing campaigns run the risk of instead engendering anger rather than sales. And there are also legal risks to such activities.

Ashton Kutcher Gets a Pass; Was the FTC Punk'd?

The New York Times "Bits blog" reports that the Federal Trade Commission has announced -- in a tweet, which is noteworthy in itself -- that it would not be investigating the online issue of Details magazine, guest edited by actor Ashton Kutcher, which profiled a number of tech companies in which Kutcher has investments. (The Times story came after gawker.com pointed out the breach of journalistic ethics.)

The FTC's announcement came one day after the blog reported that Richard Cleland, assistant director of the comission's division of advertising practices, had said that online magazine could run afoul of the FTC's "Guides Concerning the Use of Endorsements and Testimonials in Advertising."

FTC Looks to Revise Online Advertising Guide

(cross posted at the Citizen Media Law Project)
 Eighteen months after the Federal Trade Commission revised its "Guides Concerning the Use of Endorsements and Testimonials in Advertising," including revision of rules regarding product and service endorsements by bloggers and other social media contributors, the agency has announced that it is planning to revise its general guidelines for online advertising, which it released in 2000. Currently the Commission is soliciting comments regarding the revision.

Fine Day for FTC's Blogger Rules

(cross posted at the Citizen Media Law Project)
The Federal Trade Commission has announced the first monetary penalty under the its "Guides Concerning the Use of Endorsements and Testimonials in Advertising": a $250,000 settlement with a company that sells guitar lessons on DVDs.

Mommies Blog Best

The New York Times apparently has "a thing" for "mommy bloggers," with two articles in recent weeks focusing on women who blog about their families, children and everyday lives; and also discuss services and products, which has gotten the attention -- and, in some cases, largesse -- of marketers.

Mommy Bloggers Have To Do Their Homework

Today's New York Times Magazine has an article on "mommy bloggers," focusing on Heather Armstrong’s Dooce.com, which includes some discussion of advertisers that specifically provide such bloggers with free or discounted products or services, or pay them with either cash or gift cards, for mentions on the blogs.

Textbook Site Needs a Lesson

The college used textbook sale and rental site Swellhead may need to go back to school, after it announced (via an e-mail to college journalists and on its website) a contest in which the writer of "most shared" article about the company will win a new iPad. To be eligible, articles must be at least 200 words, "must appear in a prominent space on your newspaper," must link back to the Swellhead site, and must be posted on the wall of Swellhead's Facebook page.

The problem is that unless the articles specifically mention that the writers are vying for a prize, they would violate the Federal Trade Commission's "Guides Concerning the Use of Endorsements and Testimonials in Advertising," which require disclosure of incentives for bloggers to mention commercial products or services.

Swag, and Swagger, at the Auto Show

Friday's Detroit News had an article on the "freebies galore" that journalists received during the "press preview" days of the 2011 North American International Auto Show.  The Wall Street Journal also had a blog posting on one car company's popular giveaway.

But how many of these reporters are going to tell their editors -- or their readers -- about the swag they received?

U.K. Extends Consumer Disclosure Laws Online, As In U.S.

(cross posted at the Citizen Media Law Project)
The Office of Fair Trading, the British equivalent of the United States Federal Trade Commission, has determined that the hiring of bloggers and other social media contributors to promote particular products without adequate disclosure of the relationship may violate U.K. consumer protection laws. Handpicked Media Ltd (Handpicked Media), Case Ref. CRE-E-25932 (OFT Dec. 13, 2010).  This is the first time these laws have been applied online.

This is similar to the stance that the FTC has taken in a 2009 update to its "Guides Concerning the Use of Endorsements and Testimonials in Advertising," which includes disclosure requirements for similar arrangements.  I and others have written extensively about the guides and their application.

Vasoline Does It Right (But That's Not an Endorsement)

Ever since the Federal Trade Commission issued its "Guides Concerning the Use of Endorsements and Testimonials in Advertising," with its specific guidelines for disclosure of compensated reviews and endorsements by bloggers, I have been writing about questionable advertising campaigns that appeared to run afoul of the rules.  (I have also been criticizing the rules themselves, and the disparate treatment of traditional and citizen media.)

So I was interested to see a New York Times article on a new advertising campaign by Unilever's Vasoline brand for its Vaseline Intensive Rescue skin cream. 

FTC Flexes Blogger Rules Again

(cross posted at the Citizen Media Law Project)
The Federal Trade Commission has reached a second settlement with a marketer over apparent violations of the Commission's rules requiring disclosure of compensated endorsements, particularly on blogs and social media, as well as other contexts in which the compensation (which may include free samples or discounts) is not "reasonably expected by the audience."

FTC Seeks to Clarify -- and Justify -- Its Blogger Endorsement Guidelines

(cross posted at the Citizen Media Law Project)
The Federal Trade Commission recently issued a factsheet in response to questions it reeceived about its revised guidelines requiring disclosure of compensated endorsements.

A Free Meal for Time Writer Shows Flaws in FTC Rules

The New York Times has an interesting story on a Time.com food columnist who wrote about the food at his wedding from some of the leading chefs and restaurants in New York: without disclosing that all the food, as well as the venue atop the Empire Hotel, had been donated as "wedding gifts."

Absolut Issue for FTC?

The Atlantic Yards Report blog reveals a e-mail from the advertising/p.r. agency for Absolut vodka, Ketchum, inviting Brooklyn bloggers to participate in the Absolut-sponsored "Fifth Annual Brooklyn Blogfest."  By participating in this "viral, underground effort," the e-mail states, bloggers "will receive exclusive access to product, information and events before anyone else. In addition, we will ensure that your name and your site are a very special part of all the big news."

There's apparently no mention in the e-mail of Federal Trade Commission guidelines requiring bloggers to disclose that they will receive products or services from Absolut for promoting the event. Under the guidelines, which can be the basis for FTC enforcement proceedings, and FTC's policies implementing them, this could mean trouble for the advertiser and its ad agency, and possibly for the bloggers who participated.