AS per FTC, material connections between advertisers and endorsers, like payments or free products must be disclosed. This rule will be implemented from December 1, this year and aim to assist the advertisers to keep their work under the FTC Act.
BLOGGERS IN America will soon be required to declare any interest in products, which are reviewed or discussed in their web-logs popularly known as blogs, according to a new set of rules being implemented by the Federal Trade Commission (FTC).
This rule will be implemented from December 1, this year and aim to assist the advertisers to keep their work under the FTC Act, part of which covers endorsements and important connections between the advertisers and endorsers.
AS per FTC, material connections between advertisers and endorsers, like payments or free products must be disclosed. FTC will take the decisions on case to case basis but it has been made clear that if a blogger receives cash or in-kind payment for his posts, then it would be considered an endorsement.
As such, bloggers, who endorse products must reveal the connection they share with seller of products, as per the rules. The changes in the rules have been brought about after concerns were raised that social media sites are blogs were being used by companies to market and promote products and services.