The Guardian
topics
Close Box

News From Us:

Our latest report; our new video section; and jobs with paidContent.org and paidContent:UK


About That Fine ... FTC Tries To Calm Blogger Concerns About Product Mentions

The Federal Trade Commission is trying to calm some fears in the wake of its revisions to the FTC Act of 1980, amended to include bloggers in its guidelines for endorsements and testimonials. Fast Company does a good job of rounding up concerns like the fear of being fined $11,000 for mistakes, by getting Richard Cleland, assistant director, division of advertising practices at the FTC, to demystify it a bit. About that fine, says Cleland: “That $11,000 fine is not true. Worst-case scenario, someone receives a warning, refuses to comply, followed by a serious product defect; we would institute a proceeding with a cease-and-desist order and mandate compliance with the law. ... There’s no monetary penalty, in terms of the first violation, even in the worst case. Our approach is going to be educational, particularly with bloggers. We’re focusing on the advertisers.” As for enforcement, Cleland says watching for case-by-case violations isn’t realistic; this is more about education and voluntary compliance than prosecution.

Related Stories
Oct 8, 2009 10:43 AM ET

Money Bundle With Slash

Share

Posted In: Legal, Regulatory, Social Media, Nanopublishing, ftc

  • Ric

    From the initial reports on the issue this sounds more realistic. Of course flagrant violators should be sanctioned. But overall, I think the fact that this new FTC stance underscores the changing landscape of promotion and marketing via the Internets! Though most do not abuse, the threat to game common perception of who is pushing what in this space and how they do it will become less clear without checks put in place.

The Economics of Content | paidContent Newsletter

Know something we don’t?

Send Us a News Tip

All tips are anonymous and untraced.

Sponsors

Contributors