FTC’s New Rules Change Social Media and Blogging Reviews
As social media continues to change the way consumers think and shop, the FTC is changing the rules to protect those consumer interests. The new rules are now requiring bloggers and social media users to disclose any payments received for a written review of a product or service. Violators can face punishment that includes a warning letter to up to $11,000 fines per incident.
The policy had not been updated in over 30 years, long before the internet became a driving force in consumer sales. The FTC maintains that the new regulations will make it more obvious which companies are paying for promotional spots on blogs, celebrity sites, and social media sites. There have been numerous complaints about such lack in disclosures and up until now, consumers had no definite way of determining who is getting paid to do reviews. Bloggers now must clearly disclose the compensation, including free products, they have received.
Consumer advocacy groups have been trying for many years to get the rules changed in order to present a more accurate look at product reviews provided to consumers. These regulations will be admittedly hard to track because of so much online activity in the form of blogs, podcasts, and social media but nonetheless, the FTC maintains that the regulations will be adhered to and all cash or free product endorsements must be disclosed. Several websites were established to follow the financial ties between bloggers and companies but many have since been shut down due to lack of funding.
Posted in Social Media News. Tags: social media ethics
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