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FTC Announces New Blogger Policy for Endorsements or Testimonials

October 6, 2009

The Federal Trade Commission has announced that bloggers disclose that are getting freebies or being paid by companies to endorse their products, or else get fined up to $11,000. This is a new policy for bloggers in order to make product information more accurate for consumers.

Social media has become a big part on consumers’ decisions to buy products that this type of policy was going to come up eventually. I think it’s better for a blogger to mention they are either being compensated or getting an item in exchange for a review, so the reader knows that the review is biased or not.

Although it is not binding law, the FTC mentions the following, “In any law enforcement action challenging the allegedly deceptive use of testimonials or endorsements, the Commission would have the burden of proving that the challenged conduct violates the FTC Act.” When in doubt, make sure you note whether or not a company is giving you money or a free product in exchange for a product review.

Read the entire policy straight from the FTC and let us know what your thoughts are.