The Federal Trade Commission released regulations that can best be described as a landgrab to punish small media producers on the web and clamp down on free speech. Before we jump into that, the opinions around the web are piling up, and I thought I’d round those up for you before we jump into my written analysis of the guidelines (though, if you’re interested in listening to the analysis we have here at SiliconANGLE, feel free to listen to this podcast from Sean P. Aune, Steven Hodson and I).
StarterTech / Sean P. Aune: FTC Launches New Guidelines For Blogs
Mediactive / Dan Gillmor: A Dangerous Federal Intervention in Social Media
So with laudable goals, the commission issued revised rules (390k pdf) aimed at better disclosure — with penalties of up to $11,000 in fines for violations. Basically, the FTC is saying that if you have a “material connection” to a product or service you’re praising, you are an endorser who must disclose that connection.
ComputerWorld / Robert L. Mitchell: Whapped by WEP: Dangerously defective security still being sold
Buzzmachine / Jeff Jarvis: FTC regulates our speech
Jeff Jarvis echos the sentiments and quote I gave at the end of the show I recorded today:
What I now truly dread is that the FTC is holding hearings about journalism on Dec. 1 and 2. As Star-Ledger editor Jim Willse (full disclosure: he hired me a few times) said in my Guardian podcast last month (full disclosure: I work for the Guardian): the words, “we’re from the government, we’re here to help,” should be met with trepidation.
Best disclosure ever:
Disclosure: This is not a paid post, that is unless the FTC starts paying bloggers – which they would never of course. This is a reaction I had to turning on my computer this morning and seeing the chatter all over Twitter about the FTC guidelines and trying to understand them myself. Hope I disclosed that correctly.
WaPo / Cecilia Kang: FTC: Bloggers, Research Studies Must Cite Ties To Advertisers
ZDNet / Sam Diaz: FTC targets bloggers for disclosure about perks, freebies
Regardless, I have mixed feelings about the need for government intervention via the FTC’s once-every-29-years-update to its Guides Concerning the Use of Endorsements and Testimonials in Advertising, a document meant to ensure that consumers aren’t fooled by an “unbiased review” of a product when the company itself actually paid the reviewer. Of course, that’s not to say that such a review is written differently because of who signed the check – but perception goes a long way, doesn’t it?
SearchEngineLand / Nathania Johnson: FTC Sets New Guidelines for Blogger Endorsements and Word-of-Mouth Marketing
CNet News / Caroline McCarthy: FTC to bloggers: Fess up or pay up
ZDNet / Richard Koman: FTC publishes final rules on blogger payola, endorsements
David Risley: Disclose or Pay Us $11,000, Says FTC
Betanews / Scott M. Fulton, III: FTC: Bloggers must disclose material connections to endorsed products
Mashable / Adam Ostrow: FTC to Fine Bloggers up to $11,000 for Not Disclosing Payments
My friend, Adam Ostrow, completely misses the boat on the new FTC rules.
Certainly, it seems like this is an update that’s time has come. While most well-run social media programs already include appropriate disclosure, there’s still no shortage of unscrupulous marketers using deceptive practices to sell products. Now, with the threat of serious fines, those who look to push the boundaries of ethical blogging will be doing so at their own risk.
Seriously? Where is this unsavory cadre of bloggers out there pimping stuff without disclosing relationships? Do they work for major blogs? Are they part of the Skull and Bones like conspiracies? They all blog on the sly without disclosing, and that’s why we don’t know?
If that’s the fact, how will the FTC find these shysters?
Techcrunch / Brian Solis: FTC Values Sponsored Conversations at $11,000 Apiece.
Although Brian will no doubt say he’s not pro-FTC, just like the first time around (until we at SiliconANGLE called him to the carpet on his seemingly pro-FTC stance), yet again he’s published a piece at TC that sounds ambiguously pro-FTC. He buried the lede and was far to soft on the FTC. Should he subsequently harden his stance, I’ll move him to the neutral or anti categories.
Buried at the bottom is the sentence:
“While I agree with the need for disclosure in sponsored posts and tweets, the FTC’s inability to see blogging as a bona fide publishing channel comprised of expert writers and pundits in addition to those consumers willing to exchange content for compensation, is incredibly hazardous.”
The following quote, though, is priceless:
“Disclosure is also required in these new mediums. It should also be noted that these companies are working with the FTC and Twitter to help create a fair set of standards around disclosure, as well as the technology framework to effectively disclose sponsored Tweets.”
Oh, fantastic. Two organizations (Twitter and the US Government) that can’t figure out how to make money getting together trying to figure out the best way for me, a blogger, to make money. Color me unimpressed.
iLounge / Jeremy Horwitz: Great News: The FTC Finally Requires Payment-For-Review Disclosures
This has to be one of the most ignorant and offensive to my sensibilities post I’ve read throughout this whole thing:
iLounge isn’t a blog. Second, we’ve never taken a payment or a freebie in exchange for writing a review. Third, we are thrilled to see the FTC working on behalf of consumers to create transparency in product coverage, which has been plagued by tons of faked/compensated reviews over the last five or so years.
Everyone who writes on the Internet has a target on their back now. No one is safe, unless you’re not-for-profit and don’t collect a paycheck. Ever. From anyone – blog related or not.
Here’s the Bottom Line
You can be certain we’ll produce more on this topic in the days and weeks to come.
Having said that: this is a horrible set of guidelines. As Sean said during our podcast on the topic, I have no use for anyone who thinks these guidelines are in any way a good idea. It does to free speech on the web what the RIAA has done for the sharing of music.
Blogging and conversing on the web is now an $11k liability waiting to happen.
Simply because the FTC has the ability to monitor what we have to say online doesn’t give them the right to determine how we say it. My reputation is my own to squander, and if I choose to squander it by not disclosing personal relationships with companies, I should be allowed to do so.
This is a First Amendment issue. These guidelines are unconstitutional.
He’s a Bitcoin early adopter, as well as a blogging, podcasting and social media pioneer. Prior the founding of SiliconANGLE, Hopkins worked as Associate Editor at Mashable during its formative years. Prior to his career in startups and media, he worked as a developer for large corporations like Nokia, IBM, Apple and Cox Communications. Hopkins lives in Dallas, Texas with his wife and two children.
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