My $11k fine from FTC for blogging about…

First, it was Google. suspending and banning Adsense accounts of bloggers who wrote reviews for programs like PayPerPost. Now, 5 days ago, FTC published a new guideline requiring bloggers to disclose their connection or relationship with the said product or service. Blogs all over have been buzzing about the new FTC regulation the past week.

No, I did not get fined by the Federal Trade Commission. I am however curious to know when will the first case arise.

The revised Guides also add new examples to illustrate the long standing principle that “material connections” (sometimes payments or free products) between advertisers and endorsers – connections that consumers would not expect – must be disclosed. These examples address what constitutes an endorsement when the message is conveyed by bloggers or other “word-of-mouth” marketers.

The fact is, the regulation applies only in the U.S. and I’m neither a citizen nor resident. So it doesn’t affect me really. Now for those of you, yes you! If you get paid to blog about a product or service, get free gifts to blog about something or get rewards in any kind just to write something on your blog, the new guidelines applies to you. Unless of course, you are like me, there’s no need to bother with it. Or should you?

The revised Guides specify that while decisions will be reached on a case-by-case basis, the post of a blogger who receives cash or in-kind payment to review a product is considered an endorsement. Thus, bloggers who make an endorsement must disclose the material connections they share with the seller of the product or service.
Likewise, if a company refers in an advertisement to the findings of a research organization that conducted research sponsored by the company, the advertisement must disclose the connection between the advertiser and the research organization.
And a paid endorsement – like any other advertisement – is deceptive if it makes false or misleading claims.

So what does this means for the blogger? It doesn’t matter if the pack of popcorn you are blogging about cost like 50cents to the consumer. You need to disclose your connections to the popcorn maker? I like free stuff. I am sure you do too. Maybe a year’s free supply of popcorn? I like to get paid to blog. I am pretty darn sure you like that too. Getting paid or rewarded in anyway to blog is quite a motivaton to begin with.

Seriously, enough of 10-page long sales letter with big red caps and yellow highlightings with endless pop-ups. Not to mention the media player that just won’t quit even if you hit that ‘stop’ button. No, we aren’t talking about that. We are talking about bloggers who write really nice stuff about this and that product from DVDs to ebooks. From shopping coupons to holiday / travel packages.

No doubt, I do run banner ads from Adsense, Amazon and some affiliate programs on my blog. Should you click on any of those and go on to make a purchase, I do get paid. No, I am not your $4,000 – $10,000 a month blogger. The little revenue that I get goes to pay for my webhosting and other misc stuff to keep my blog online.

Since I started blogging in 2003, the only free product I did get was a phpscript to run an online store with the ability to pull data feeds direct from the marketplace. Even so, the developer of the script only asked me to give it a go when I find the time and blog about it if I do like it. For 2 whole years, I never got down to doing it. Until having tested it and doing some research online recently, did I realize it was a pretty neat product and decided to blog about it.

So what about full-time bloggers who write reviews to get paid? On one hand, I doubt the FTC has the resources to go hunt down every blogger guilty. If they did, it would be a total waste of taxpayers money. On the other hand, perhaps now is the time for get-paid-to bloggers to take one step back and rethink their strategy. I dislike review sites and will never click on any links on such sites.

Consumers aren’t dumb. Do not attempt to pretend that they are. If you are running a get-paid-to blog in the purest form, returning readers will mean nothing to you. For others, the disclosure policy might just be a means for your readers to know you better. Show them who you are and what you stand for. If your readers like what they read, they will keep coming back for more. It could be today, or it might be 2 years down the road before they finally decide to click on one of your links and make that purchase.

For your readers to keep coming back, focus on 2 things. Think ‘trust and value’. Readers will come back if they find the content of your blog offers them value be it a tip or a simple workaround. Consistent value over an extended period develops into trust. Otherwise, your blog / content is no better than the SPAM emails for fake viagra pills I keep getting in my mailbox daily. Deleting these emails take just one click of my mouse. Here’s my disclosure policy.