FTC Toughens Endorsement Rules For Celebrities, Bloggers
WASHINGTON -(Dow Jones)- Blogger or flogger? The Federal Trade Commission is
taking a tougher line on bloggers who accept cash or gifts to tout a company's
products or services.
Under revised rules announced Monday, the FTC will require bloggers and
celebrities to clearly state when they receive cash or "payment in kind" for
endorsing a company's products or services.
The changes, adopted on a 4-0 vote, are the first revisions to federal
guidelines on endorsements and testimonial advertising since 1980.
Connections between advertisers and endorsers must be disclosed under the
revised guidelines. The FTC said the stricter disclosure will apply to comments
on talk shows, blog posts and on social media as well as in traditional
advertisements.
Corporations also face stricter standards. Under the revised guidelines, if a
company's advertisement refers to findings of corporate-sponsored research, the
ad must disclose the link between the company and the research organization.
Advertisers and endorsers who fail to disclose material connections, or who
make false, misleading or unsubstantiated claims may be subject to fines.
In another change, the FTC will take a tougher line on testimonial ads
featuring results that aren't typical. While the old rules allowed such ads if
they included a disclosure such as "results not typical," the revised rules
require such ads to clearly state the results that consumers can generally
expect from the product or service.
-By Judith Burns, Dow Jones Newswires, 202-862-6692; Judith.Burns@dowjones.com
(END) Dow Jones Newswires
10-05-091220ET
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