FTC Rules to fine Bloggers up to $11,000

The FTC rules for Bloggers which that the Bloggers will be fine up to $11,000. What a surprise news. The Federal Trade Commission or FTC releasing a memo which they include a punishment to all bloggers who don't reveal their welfare with such a products or a certain services and also the Twitter subscribers. It means that if any recommendations by a certain bloggers on a products attributes, it will be examine if the blogger could not reveal there recompense.

A recompense is kind of cash or in kind of. The comprise free products, free meals,hotel accomodations and trips is not precisely includes in the "in kind".

"Under the revised Guides, advertisements that feature a consumer and convey his
or her experience with a product or service as typical when that is not the case
will be required to clearly disclose the results that consumers can generally
expect.

The revised Guides also add new examples to illustrate the long
standing principle that “material connections” (sometimes payments or free
products) between advertisers and endorsers – connections that consumers would
not expect – must be disclosed. These examples address what constitutes an
endorsement when the message is conveyed by bloggers or other “word-of-mouth”
marketers.

The revised Guides specify that while decisions will be
reached on a case-by-case basis, the post of a blogger who receives cash or
in-kind payment to review a product is considered an endorsement. Thus, bloggers
who make an endorsement must disclose the material connections they share with
the seller of the product or service. Likewise, if a company refers in an
advertisement to the findings of a research organization that conducted research
sponsored by the company, the advertisement must disclose the connection between
the advertiser and the research organization. And a paid endorsement – like any
other advertisement – is deceptive if it makes false or misleading claims."

The new regulations will be effected by December 1, 2009. Eventhough the bloggers in the Philippines are not involved but it might be the DTI will also do the same regulations.