The Federal Trade Commission is planning to crack down on bloggers who review or promote products while earning freebies or payments, the Associated Press reported Sunday.
This would, for the first time, bring bloggers under FTC guidelines that ban deceptive or unfair business practices.
"New guidelines, expected to be approved late this summer with possible modifications, would clarify that the agency can go after bloggers--as well as the companies that compensate them--for any false claims or failure to disclose conflicts of interest," the article explained.
The rules could be quite strict, even extending to the practice of affiliate links--for example, a music blogger who links to a song on Amazon MP3 or iTunes that earns an affiliate commission in the process.
The practice of free products for bloggers, most of whom are not bound by ethical guidelines that journalists have historically followed, has been making headlines for some time now. Microsoft, for example, created a wave of bad press a few years ago when it gave free Acer laptops preloaded with Windows Vista to several dozen bloggers.
Some companies have sprung up around the whole notion of blogger compensation and giveaways. The AP article mentions some of the marketing companies that have made a business out of offering bloggers incentives--free trips, products, gift certificates, or outright payments--for coverage. One of them, Izea, has been generating controversy in the tech press since it started PayPerPost.
Izea says that it requires bloggers to disclose what they've gotten paid for or what they've received for free. But with the proposed FTC guidelines, if a blogger fails to disclose a freebie or payment, both Izea and the blogger could be held responsible. The FTC could also take issue with the fact that for at least one promotion, Izea has said it avoided including bloggers who would be likely to give the company negative press.
Izea CEO Ted Murphy wrote in a blog post Monday that the company supports stricter FTC regulations for bloggers.
"The companies that should be worried about these changes are those that have no standards and no way to enforce disclosure," Murphy wrote. "We have invested millions of dollars creating systems that allow us to automate transactions and verify standardized disclosure."
But some bloggers, the AP article mentioned, are concerned that the FTC's efforts could go too far, possibly generating probes into posts that were written without any compensation, and possibly leading bloggers to post with more restraint. And some believe it would be better if bloggers created their own standards based on niche and industry.
Then there's this: does the FTC realize just how many small-time bloggers are out there? Championing business ethics is a worthy goal, but, um, good luck getting much done when there are hundreds of thousands of blogs out there and new ones popping up more or less daily. Ever heard of the expression "herding cats?"
This post was updated at 11:37 a.m. PT with comment from Izea.
Izea, a social media marketing company that started PayPerPost and SocialSpark, announced on Monday that it has established a blogger advisory board to help it expand its presence online.
"The board includes leading bloggers in social media, community development, marketing, advertising, and affiliate programs," Izea CEO Ted Murphy wrote in a blog post on the company's site. "The advisers will be working together with our management team to guide the company in product development, outreach, and further enhancement of our code of ethics."
Ethics is a common theme when Izea is discussed. The company's PayPerPost property connects advertisers to bloggers, who get paid for writing reviews of an advertiser's Web site, product, or service. Similar to PayPerPost, Izea's SocialSpark allows advertisers to pay bloggers for a sponsored post on their sites or ads on their blogs based on a set rate determined by SocialSpark. Both services have come under fire for toeing the line between ethical behavior and "pollution of the blogosphere" by major bloggers. But the company's decision to form an advisory board suggests it may be trying to improve its standing in the community.
Izea's blogger advisory board will be meeting in Orlando, Fla., on December 6 to discuss the company's future.
LAS VEGAS--Angie Mecklenburg, a mother of four in Sutter, Ill., blogs about chickens, God, and her farm. For an estimated $15, she'll write about soy-wax candles for a marketer.
Over the last 18 months, Mecklenburg has kept up three blogs, the most popular being Ang's Chicken Coop, which has the tagline "a view of the world from the coop." With about 250 daily visitors to her sites, she said she manages to make as much as $1,200 a month, collecting fees from Google advertising and marketers who pay her to write about their products via the blog ad network iZea.
For example, iZea recently paid her about $15 to write about candles from the Maddison Avenue Candles Company. She also was paid to write a blog about the Christian movie The Last Sin Eater earlier this year.
"iZea sent me a synopsis and movie clip. I blogged it and then I went and saw it," Mecklenburg said at the BlogWorld conference and expo here, a three-day event for blog entrepreneurs and professionals. She said she loved the movie.
Mecklenburg's story is just one of many here this week at the Las Vegas Convention Center, which is also playing host to GodblogCon, a gathering of religious bloggers. Many of the attendees are trying to figure out how to make money from their small publishing ventures, whether it's a political, military, or God-related blog.
iZea, formerly called Pay for Post, is one company trying to capitalize on that desire. Founded in June 2006, the company pays as many as 85,000 bloggers to write about a range of products, including household products, cars, wireless phones, and new movies. According to Randy Mountz, vice president of sales, iZea has roughly 11,000 advertisers in its network, including Hewlett-Packard, Ford, and MGM.
Mountz said the company pays bloggers an average of $18 for a 200-word post on a product or service. Its top blogger, the Florida mom behind Simplekindoflife.com, has made as much as $18,000 over the last year, he said.
Still, the company has had some push-back from other bloggers for buying blog editorial, he said. That's why, "we strongly encourage full disclosure in the post of the sponsorship," he said.
And so far, that's working for Mecklenburg, who now has as many as six blogs to discuss her different interests. Those sites include Twitter-patted.com and Ang's Brood.
"I blog about God and the things I see he does in my life," she said. "But it's not my sole focus. I have many interests and it's really hard to wrap all of them in one blog."
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