I did a hub on this for those who want more info. Beginning Dec. 1, bloggers have to claim all freebies and revenues earned through promotions product online for a company. There are fines up to $11k. As always, report your earnings but don't forget these additional items.
FTC to Fine Bloggers up to $11,000 for Not Disclosing Payments
Bloggers now have up to 11,000 reasons to disclose when they are being paid to review products.
The FTC has updated its Guides Concerning the Use of Endorsements and Testimonials in Advertising for the first time since 1980, and among the changes, a requirement that “bloggers who make an endorsement must disclose the material connections they share with the seller of the product or service.” Fines for violating the new rule will run up to $11,000 per post.
Further Hubber discussion on the matter is going on in here: http://hubpages.com/forum/post/417245
Is this applicable in US only or globally?
I spoke with the FTC this morning to clarify how this might affect bloggers, hubbers, etc. who use 3rd party or affiliate advertising such as adsense, ebay Network Partners, Amazon, etc. I wrote a summary of my discussion here: http://hubpages.com/hub/New-FTC-Guideli … l-Bloggers
I will be very interested in how this all plays out. I'm really curious about how they are going to enforce it. My guess is they probably won't enforce it, unless it is brought to their attention by a complaint or an additional infraction. I just know that the threat of $11,000 per instance is enough to make me want to stay well on the safe side.
Never underestimate the power of the government to take money away from you. Especially now when they are running so much in the red. The FTC clearly has nothing better to do than taking on bloggers who might make a little money. Clearly, the public needs protected from the evils of blogging, especially since the sheeple have no ability to figure it out for themselves.
The FTC recently lost a case where they had claimed advertisers couldn't include truthful information such as a testimonial that said the product cured someone's arthritis, for example, unless there was also clear and convincing research to back up the individual case history.
The FTC's response appears to have been to rewrite the regulation, making it even more onerous than before. The disclosure about making earning a fee from a product is just a small part of this new draconian regulation.
I would imagine that Benjamin Franklin would be rolling over in his grave for publishing a newspaper "Richard's Almanac" while offering his Franklin stoves for sale. Perhaps he also offered his bifocals for sale, promising better vision, too.
The new reg disallows using testimonials unless the owner can also provide the results of all buyers. This is a preposterous requirement for two reasons:
1) No company could possibly afford to track all their customers' results with their products.
2) Customers would not cooperate because they have rights to privacy.
In other words the regulation is impossible to meet. The regulation will be enforced unevenly, helping their friends and punishing those who are not well connected.
Rather than being innocent until being proven guilty, this regulation turns the entire sales process on its head and assumes that the seller could possibly be lying or misleading so therefore, we won't allow them to do what has worked well for over 200 years.
Absolutely nothing you have said here has anything to do with the FTC and bloggers disclosing endorsements.
This is getting closer. But how do you feel about a newspaper writing public relation fluff pieces for companies? They get paid to do it, but they write it up looking like a legitimate news article instead of an advertisement?
Its interesting to see all the comments about the FTC. This rule is like most of our governmental processes, more about bureaucrats run amok. Its not different than what broadcast media has been subject to for years at the rule of the FCC. Its all about disclosure. Disclose the "behind the curtain information" and you are probably going to be alright. Attempt to fudge a bit, or forget you got that whatever from someone to write something favorable, and you could get whacked.
I think the move is probably not legal, and is certainly not constitutional. Then again, when has that stopped our government these days. No one is likely to have the wherewithal to take on the FTC, so the rule will go generally unchallenged.
Its somewhat like the IRS. We all know there is no physical way they can check everyone's taxes. The fear that they might get ours keeps us in line. Somewhat like Nazi Germany and Hitler I would surmise.
by Abs Machine8 years ago
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What was your last pay check amount from google?
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