THE DREAM IN ACTION

As of December 1, the Federal Trade Commission is going to require bloggers, and prominent tweeters and Facebook types to disclose any paid endorsements to their followers, online friends and readers. These new rules have the potential to change everyone’s online habits.

A trend, al biet not a common one, among bloggers is to take a small fee in exchange for positive evaluation of a product. Under the FTC’s new rule all bloggers who do this must disclose that they are being compensated. And, they will have to disclose what they will receive. I’ve gotten free books and have blogged my reviews of them in the past. I don’t always review positively, I review honestly, but I would still be required under these rules to tell my readers that I received the book for free.

In my reading most bloggers already disclose this stuff. Dishonestly on the web spreads quickly and credibility fades just as quickly. It’s not worth skeeming this way because it really won’t last long.

Where this really gets ridiculous is these same rules will likely apply to Twitter. So if a celeb promotes a product, they’ll also have to disclose that fact. Are they suppose to do that within the same 140 characters? Celebs receive gifts all the time, venues what celebs talking about them, but if they have to disclose EVERYTHING they get for free this will ‘disincentivize’ the venues from give those things for free, could this ruin the hora of being a celeb. Probably not but you see why it’s getting ridiculous.

Take this scenario into consideration… If you get paid for your job, which is why most of go, then you’re not allowed to tweet, blog, or social media whatever, about your company without publicly disclosing that you’re an employee of that company. In the FTC’s eyes there is no difference between a free book with a  positive review and a full-time salary with a positive employer review. Now do you see why it’s ridiculous?

The last scenario that I want to point out that proves how ludicrous these new rules are is that of a startup investor. Take Brad Feld, Bijan Sabet, or Fred Wilson as examples. Most of what these guys do online is about their existing portfolio companies or finding new companies for their investment portfolio. Now by these new rules they would be required to disclose that they have a financial interest these companies before tweeting or blogging about them. I’m unsure of the detail required

Statement from the FTC: Richard Cleland, assistant director of the FTC’s Bureau of Consumer Protection, says the regulatory body is more concerned with how advertisers pay for endorsements and reviews rather than the actions of individual bloggers and other online types, according to IDG News Service. That being said, the FTC can levy fines of up to $11,000, so if you’re a big-time blogger or prominent social media type (which can be anybody these days) it’s potentially a lot cheaper to play by the rules.

image via manfrommanila