The Associated Press reported earlier this week that the FTC plans to monitor blogs for disclosure.
The practice has grown to the degree that the Federal Trade Commission is paying attention. 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.
There have been calls for affiliate disclosure in the past, but they typically didn’t evolve beyond a small symphony of complainers.
But now that the FTC is focusing on the matter, it’s time for affiliate marketers to start thinking about a strategy.
Brian Clark of Copyblogger.com sees the upcoming regulation as a positive thing in his recent post, “How to Turn Affiliate Marketing Disclosure Into a Selling Point.”
I think Brian makes good points and he wraps up with…
If you’re delivering constant value, most people won’t mind… as long as you’re honest. Sure, you’ll have a few vocal readers with an enlarged sense of entitlement who expect you to work for free, but ignore them.
And if it turns out that the majority of your audience actually does mind you making some money for your efforts while delivering honest reviews and recommendations…
Ted Murphy of IZEA is in favor of stricter FTC disclosure requirements. But how will they be enforced and how soon?
I don’t think audiences will have a problem with the disclosure, so long as it’s not disruptive to the actual content. Stay tuned for more details on this issue.
I’d imagine this will be a big topic in the “Hot Topics in Marketing Compliance and Enforcement” session at Affiliate Summit East 2009, which includes a roster of experts including Leonard Gordon, Director, Northeast Region of the Federal Trade Commission.
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@Bodylastics:
So you think the government is overstepping, but that there is not enough disclosure?
This is just another case of the Federal Government trying to control the internet. Actors and other celebrities have been compensated for years for promoting products on television.
Isn’t this another form of affiliate marketing? Now you may say most people understand that these people are compensated. However, that is certainly not 100% of the case. In the beginning when television was brand-new you had celebrities promoting products everywhere. There was no disclosure of any kind that these were paid endorsements. The Internet is still in its infancy and the same thing applies.
I take net neutrality as a very serious issue.
The Internet is the only place where a small business person, mom, dad or young person can earn a part-time income these days. With the Internet and everyone does not need is more legislation to regulate free-trade.
The United Kingdom has never had a free market as we noted United States. Their advertising policies are very prohibitive when compared to those of this country. So I do not look at them as an example of what a “Free Market” is all about.
That is just my opinion.
@Paul Schlegel:
Maybe that would make sense if you’re writing a sponsored review, but if it’s a link to a company that is mentioned in a post, then such a reference is clumsy and odd.
For instance, I will create a text link to a service I use when I mention them in a post, like RackSpace or GoDaddy. I am not reviewing them, but rather just mentioning them as vendors I use.
Getting the disclosure language will be key for affiliates. I run an authority site in a market full of scams (work at home/home businesses) and the language that has come to me recently would go something like this:
“The product of this sponsored review has been approved by (site name) as newbie-friendly” (as my target demographic is primarily those new to home businesses/online business/telecommuting).
I don’t think they understand the business. That bloggers are the low men on the ladder and they need to climb to the top to get the scum.
Financial advisors, funeral homes and many other groups have been through this with the FTC and other agencies. The only people that have to worry are the ones who are purposely misleading people for monetary gain. I have spent time with my state attorney general and the FTC and believe me, they have enough on thier plate. Smart people will figure out how to disclose in a tactful way and will not have a problem. This is not that big of a deal.
Agree with Brian and posted a comment over there on it. Our startup shopimar sees this as who better to disclose and regulate your own brand than you as a writer.ge
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