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  Keeping bloggers honest| Rachel Clarke |
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 | Reported by guardian.co.uk
on Saturday, 10 October 2009
(on October 10, 2009) |
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Now the US, like Europe, is telling bloggers to come clean about the freebies they receive.
Everyone winsWhile many US bloggers are concerned about the new US Federal Trade Commission guidelines regarding product endorsements, over in the UK (and EU) we've been living with similar guidelines for more than a year.
In May 2008, the unfair commercial practices directive came into force, directly impacting bloggers, brands and their agencies.
For word-of-mouth/buzz/influencer/social media/viral marketing (pick your buzzword) you need to watch out for:• Advertorials or paid placement of a story.
The writer has to disclose that he is receiving compensation for an article, including payment in kind.• Astroturfing or flogging.
That is, advertisers or their agents can't disguise themselves as a consumer to write comments or create blogs.
They have to disclose they're doing it for marketing reasons.When the EU updated its laws, many in the US were hoping the industry there could self-regulate.
But this was not to be.
The FTC has approached social media marketing from a different angle to the UK, bringing it all under the updated guidelines about endorsements.
The 81-page document carries a lot of information about using celebrities and experts to promote your product.
Sprinkled throughout - and taking a lot of space in the introductory commentary - is the digital world of blogging and social networks.
This seems to go far further than the EU laws.There appear to be three main areas of impact:• A blogger can be considered an endorser of a product if he is directly paid, if the value of the product/service is "high" (although no guidance given) or if he regularly receives free products for review due to his online influence.
This includes people who are part of buzz networks, signing up to receive products for review.• Both bloggers and advertisers are responsible for statements made.
A blogger can be held liable for any false claims.• It is the endorser's responsibility to disclose all relationships, although advertisers have to monitor disclosures and take steps if they are not happening.So online writers now become a lot more accountable for what they write or publish in other forms.
Personally, I think this is a good thing.
Transparency and credibility are one of my favourite changes to arise from social media, with companies finding it hard to keep bad practices secret - there are too many people ready to share transgressions.
Now the same transparency applies to anyone trying to make something out of the online space, whether that's money or free goods and experiences.However, I think the risk of someone being caught up by accident, out of enthusiasm for a product, is high until the guidelines have been clarified with case-law, which is going to take a while.The various word-of-mouth organisations have codes of practice about being honest in relationships, in opinions and in identity.
That is, make it clear who you are working with, make it clear it's your own opinion and have a consistent identity when you write.
For many companies and bloggers, these are core values, and they'll follow them, feeling affronted at the need to be regulated.But others, either through wilfulness or ignorance, don't have these business behaviours.
They'll take some money to write a blog review or pretend to be someone else - an enthusiastic customer just happy to be telling everyone about the new product they've found.
They could get away with activities that were not possible in more traditional routes, with their longer history of regulation.
Now that loophole has been changed in the US, in the same way it was over here.These regulations are not going to stop them from trying.
Regulating the millions of possible outlets is impossible.
But there is now a greater risk associated with the reviews, on both sides.
Responsible agencies will want to ensure disclosure is happening, and bloggers may think twice before writing a positive review.
(Although under the new guidelines, you are still allowed to accept payment or product and say nothing, or discuss it critically without disclosure, as these are not endorsements.
But I don't see many companies wanting to continue doing that for long.) There will be an impact on the business of online reviews and trials, but readers and customers can only be in a far better position as a result of these changes.
Studies consistently place online reviews high in the trust ranking when assessing new products.
Now it'll be possible to confirm that they are genuine and not paid product placements.
Everyone wins here.
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