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October 15, 2009 4:03 PM PDT

IAB to FTC: Dump the new blogger rules

by Caroline McCarthy
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The Internet Advertising Bureau has come out against new guidelines proposed by the Federal Trade Commission that would require bloggers to disclose their affiliations with sponsors, marketers, and free giveaways. The reason? The IAB claims that the rules unfairly regulate online media more than offline.

"What concerns us the most in these revisions is that the Internet, the cheapest, most widely accessible communications medium ever invented, would have less freedom than other media," IAB president and CEO Randall Rothenberg wrote in an open letter to FTC chairman Jon Leibowitz. "These revisions are punitive to the online world and unfairly distinguish between the same speech, based on the medium in which it is delivered. The practices have long been afforded strong First Amendment protections in traditional media outlets, but the Commission is saying that the same speech deserves fewer Constitutional protections online."

He illustrated it with a personal example:

So there I was last Saturday, about to send out on my Twitter feed--which automatically updates my Facebook page and links to my personal blog--a photograph of this wonderful baked halibut dish I'd just made as a surprise for my wife. I was in the middle of typing a rave review of the recipe, which I'd pulled from my favorite cookbook, "Delicioso! The Regional Cooking of Spain" by Penelope Casas. But before I could press the 'post' button, I stopped and canceled the whole thing.

I remembered that the book was a freebie, sent to me by an editor at the Alfred A. Knopf publishing house 13 years ago. And I didn't want you guys to haul me into court and fine me for violating the rules you've just promulgated to muzzle social media.

The FTC has said that the rules, which stipulate that violations may face up to $11,000 in fines, are designed for education rather than punishment. But Rothenberg isn't buying it.

"The Guides do allow you to pursue bloggers," he insisted. "They do hold individuals more liable than larger corporations. They do explicitly say online social media have less protection than offline corporate media. They do obstruct online companies' opportunities to drive cultural conversation more than offline companies'. They do threaten with prosecution book publishers, movie producers, and other companies that supply products to individual social media conversationalists."

The bigger problem is that offline media isn't subject to the same restrictions, he explained. And, according to the letter, clamping down on one medium but not another constitutes a First Amendment violation.

The FTC has not yet responded publicly.

Caroline McCarthy, a CNET News staff writer, is a downtown Manhattanite happily addicted to social-media tools and restaurant blogs. Her pre-CNET resume includes interning at an IT security firm and brewing cappuccinos. E-mail Caroline.
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by disco-legend-zeke October 15, 2009 4:32 PM PDT
hopefully this will encourage rich companies to drop little payola at us starving bloggers.
Reply to this comment
by jaguar717 October 16, 2009 1:39 AM PDT
"the cheapest, most widely accessible communications medium"

Someone obviously hasn't been paying attention to anything Herr Pelosi, the Czars, or any of the other Anointed Ones have said or done. They oppose leaving anything cheap or freely accessible. Every power grab makes everyday life more difficult and expensive for anyone working for a living, with increased government control over every productive activity.

The Party may be slowed on this issue, but they'll just come up with another takeover. We need to flush the Control Freaks out of DC before they condemn us to the stagnation, chains, and poverty of Old Europe.
by Lerianis3 October 16, 2009 5:15 AM PDT
Jaguar, get a life. The fact is that the Repukians are more likely to do those things than the Democrats are, by a large margin.
by jaguar717 October 16, 2009 1:36 PM PDT
Cap and tax? Healthcare takeover? Bank takeovers? Auto company takeovers?
A trillion dollars in political kickbacks?
Net "neutrality" power grabs?

Bills to give emergency control of any internet provider to the President?
Sending the FTC after bloggers?
Asking people to forward any criticisms to the White House?
"Fairness Doctrine" to muzzle opposing views?
"Hate speech" legislation?
Monitoring libertarian websites?
Paying members of The Party to post anonymous cheerleading comments?

Anybody with a Ron Paul bumper sticker is a domestic terrorist?
Shut up and quit dissenting or you're a racist extremist who isn't being "bipartisan"?
Anyone opposed to Omnipotent Government is a "Nazi"? (<-- Nancy Pelosi's words)
by Pete Bardo October 15, 2009 4:36 PM PDT
Typical of the government. Somehow they think internet is exempt from the Constitution and the Bill of Rights, especially when it comes to free speech.

On the other hand, full disclosure in print and broadcast media could be a good thing. Now, most newspapers, magazines and even TV shows have a web version. Doesn't that really mean they are subject to the same Guides?
Reply to this comment
by Lerianis3 October 16, 2009 5:16 AM PDT
No, they don't think that the 'internet is exempt from the Constitution'. They are asking bloggers to state when they are getting paid for reviews that they do, which is not a bad thing in the slightest and doesn't fall under the First Amendment.
They make radio DJ's tell when they are being paid for touting a business or service or product.... why shouldn't they do it for bloggers online?
by mbenedict October 15, 2009 5:21 PM PDT
The example Leibowitz gave is bogus. Presumably Knopf didn't give him the cookbook 13 years ago in exchange for a good review. If they did, then he indeed should disclose that fact.

We have scammers paying bloggers a ton of money through affiliate networks to shill products they've never even seen. The FTC should come down hard on these scammers.
Reply to this comment
by RobertAPierce October 16, 2009 5:15 AM PDT
Actually, if you read the FTC guidelines, the fact that the cookbook was not provided in exchange for a good review doesn't matter. They could charge and fine you if you don't disclose that you received that book for free yada yada yada. Large corporations have no such restrictions. These guidelines are unbelievably bad and misguided.
by SnowCrash8 October 15, 2009 5:47 PM PDT
Very bad idea the FTC disclosure rule. For one thing, no one will ever know what amounts to advertising or conflict of interest, or what does not. Further, might it also be used to go after poitical enemies?

This rule needs to go the way of the DoDo Bird--Extinct!
Reply to this comment
by Lerianis3 October 16, 2009 5:18 AM PDT
No, it doesn't. This is a good rule that is VERY frigging easy to be in compliance with: simply state if you are given the thing for free by a company to review and are allowed to keep the thing in question, or are being PAID ANYTHING, even gifts, by them for reviewing the thing in question.
Simple, easy, and something even a braindead zombiefied monkey should be able to do!
by Renegade Knight October 16, 2009 1:11 PM PDT
It's a good intent with a not so perfect implemention in the real world.
by freedoms_stain October 15, 2009 5:48 PM PDT
Rather than can the proposal they should just expand it to cover everything.

It's really not fair if "reviewers", one of our few legal ways of assessing whether many things are worth purchasing, are being paid to plug things regardless of their genuine opinion.
Reply to this comment
by Lerianis3 October 16, 2009 5:19 AM PDT
Yep, that is what they should do. Just expand it to cover everyone in newspapers, magazines, etc. instead of scrapping a very good rule.
by trylon October 15, 2009 6:17 PM PDT
The new FTC guidelines requiring bloggers to disclose payments or gifts received in exchange for posting endorsements or favorable coverage are result of ongoing ethical lapses by many SEO specialists, buzz marketing agencies and PR firms over the years. Through ongoing, deliberate attempts to breach the church/state wall between advertising and editorial through obfuscation (remember Wal-Mart?s Jim and Laura bloggers?) the industry has brought regulation upon itself.
Ethical media relations require always providing bloggers (and all other media and various publics) with full disclosure. The practice of offering or gifts or payment should have been discouraged by clients, who should have insisted that that agencies secure positive editorial coverage based solely on the merits of a brand.
These FTC rules will not present any challenge for those who execute their communications campaigns in a fully transparent manner. After all, time and the Internet shows that the truth comes out eventually.
Reply to this comment
by nataliev39 October 15, 2009 9:14 PM PDT
I am definitely interested in seeing what the FTC says in its response to the accusation that they are in violation of the First Amendment. I have recently been reading quite a bit on the First Amendment and the history surrounding it. From what I have read, it is very hard for anyone or any company to win when they are accused of violating the First Amendment, but this is more typically when prior restraint is involved. I have not read about a lot of cases regarding the disclosure of affiliations with sponsors, which is why I am very curious to see how this all pans out. And after reading the previous comments, particularly the one from the blogger hoping for more payout after disclosing affiliations, I have to wonder, might this not be beneficial for some bloggers? They definitely could work this angle and generate some definite cash or collateral for having to drop names in their blogs.
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by Lerianis3 October 16, 2009 5:20 AM PDT
No, it isn't. Most times when someone has been accused of violating the First Amendment, especially the government, they have WON in court when they have said that they aren't. It's very rare unless something is exceptionally egregious for someone to win a challenge against a business or person saying that the business or person in question has violated their First Amendment rights.
by RobertAPierce October 16, 2009 5:19 AM PDT
I agree with Rothenberg 100%. The FTC is targetting small bloggers and individual posters, putting individuals at risk of being fined for an activity that done in a different medium would not be a problem. The FTC says they won't go after small sites, but what kind of comfort is that when you do get fined? A promise by the FTC to only enforce the rules in some ways is absurd, and these guidelines are idiotic. They appear to be in violation of the first amendment, but who's going to be the first one to take them on?
Reply to this comment
by Dave_Wright October 16, 2009 6:55 AM PDT
While I am a large advocate for freedom of speech and feel that all media should be treated fairly, I agree with the FTC. Blogs are great as they allow ordinary people to protray their thoughts and opinions to the rest of the world. Their opinions are usually more accepted as the readers generally beleive that the content is real and not a made up advertisement for a product or service. If an individual writes blog content that he/she was paid to write, then it should be disclosed as it is an advertisement and not opinion. When we allow the line between honest opinion and paid endorsement to be blurred, we allow our very spirit to be compromised.

The FTC is not in anyway trying to squash free speech, they are trying to protect the public and allow for free speech to continue. If you think about it, someone who is getting paid to write a blog they are not speeaking freely as the content is not from their heart and thoights.
Reply to this comment
by Renegade Knight October 16, 2009 1:15 PM PDT
"If you think about it, someone who is getting paid to write a blog they are not speeaking freely as the content is not from their heart and thoights. "

That's a function of integrety but everone else will always question their judgment when they know about the connection.

If you believe in this new rule (and the intent behind it is good) you also need push to have everone disclose everthing like paid advertisers pushing to get their way on published content and such. The larger idea behind this rule cuts a lot deeper than it would seem at first blush.
by Hamlet72 October 16, 2009 7:48 AM PDT
The intent of the blogger rules is probably a good idea, but the devil is always in the details in how this is implemented. The FTC rules are not clear and it definitely appears to be a 1st ammendment issue. In addition, if they are going after bloggers (which by the way, the total value of goods and services peddled by bloggers is a rounding error on Walmarts balance sheet), then they also need to implement rules/procedures for the all crappy "white papers" put out by corporations. The "white papers" are always written to provide some sort of vendor neutral position or best-way method for an issue, when it fact it is just "marketing literature" by large corporations to push their products. I think these so called "white papers" do more harm, then reviews by bloggers and should be labeled as advertising clearly (Very Clearly) and not some "white paper". White papes do way more harm, then reviews by bloggers.

The total value of all goods and services purchased online is about $250 billion give or take a few billion. How much of this $250 billion pie is actually influenced and peddeled via affiliations by bloggers? I would guess again that this is a rounding error on Walmarts balance sheet, as we need to put things into perspective. The FTC has created a rule that punishes the small guy (since that is what a blogger is). The rule is stupid. It needs to be dropped.

There are way more important areas which the FTC needs to concentrate on, then to create specific rules targeting bloggers.
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by Vegaman_Dan October 16, 2009 9:08 AM PDT
Let me understand this correctly:

The IAB wishes to continue making it possible to bribe or pay bloggers for their reviews essentially without having that payoff be known to the readers of those blogs, correct?

I don't care what example they give- their intent is pretty darn clear.

I used to be involved in the automotive industry where we were given new tools from companies like Easco/Snap-On/KD/Sears, etc. to test out and give a review in an industry press publication. It was always made clear in the disclaimer in the publication that the tools were given to us for the purposes for review and were returned back to the OEM when complete. Often what happened is when we were done with them for our tests, we'd end up just forwarding them to the next magazine for the same purpose. The same set of review tools went around to different groups that way. You didn't get to keep them. To keep something like that is just unethical.

It's the same way for automotive reviews too. It should be openly disclosed what your incentive is to give the review and what your relationship with the company is.
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by bluemist9999 October 22, 2009 11:49 AM PDT
From what I understand, the FTC is just making clear that bloggers have the same obligation of disclosure that offline journalists do.

In my opinion, excellent products don't need bribes to earn excellent reviews. The product stands alone in demonstrating its value and quality.

So, basically, the IAB is implying many of the products they endorse aren't good enough to earn their reviews without bribery.

What did I miss here?
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