eLert Gadget Publishers
FTC GUIDES GOVERNING ENDORSEMENTS AND TESTIMONIALS Published: 07/10/09
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If you are a Publisher, Blogger, Affiliate or Online Marketer the following will have big implications for your business.

The American Federal Trade Commission (FTC) have made an official statement that starting on December 1, 2009, all bloggers and affiliates have to disclose they are being paid for running paid endorsements and testimonial on their blogs and WebPages (including eLerts).

i.e. if you get paid for selling a product and you use endorsements or testimonials you need to make it very clear you are being paid to do so.

An endorsement or testimonial means ANY advertising message, including reviews, statements, demos, signature or any other elements that consumers could potentially believe that reflect the opinions, beliefs, findings or experiences of a party other than the sponsoring advertiser.

Endorsements and testimonials usually appear as images, text, video, reviews, links, giveaways, etc.

Note that a consumer who purchases a product with his or her own money and praises it on a blog will not be deemed to be providing an endorsement. However, a blogger who is paid to write about a product, by an advertiser or a third party, is covered by the Guides.

This includes being paid commission on sales so affiliates be ware. If you are a blogger who receives any type of compensation for reviewing a product/service/web site and writing a blog post about it, the FTC rules apply to you, regardless of your geographic location and nationality – expect that all countries will soon release similar rules.

Any form of compensation is regarded as payment (money, merchandise, coupons, freebies, etc.) and any form of compensation should be disclosed. While the FTC does not require bloggers to post the exact amount of money received by a blogger to endorse a product, the commission expects bloggers to clearly and conspicuously disclose their relationship with the advertiser and what they have received to endorse a product. These rules affect mommy bloggers and tech bloggers who are given products because their core readership represents a key demographic group targeted by the advertisers.

For example, a blogger could receive merchandise from a marketer with a request to review it, but with no compensation paid other than the value of the product itself. In this situation, whether or not any positive statement the blogger posts would be deemed an “endorsement” within the meaning of the Guides would depend on, among other things, the value of that product, and on whether the blogger routinely receives such requests.

Bloggers and affiliates who have any type of testimonial on their sites should comply with the regulations.

The FTC document in full, can be found here in PDF format and the official statement is here

 

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HI,GARY
THANKS VERY MUCH FOR INFORMING US ON THIS MAJOR CHANGE! LIKE ALWAY YOU GUY ARE EXTREMITY DEPENDABLE! I HAVE NICE FOR YOU MAKE REALLY WELCOME A CELEBRATE GET SMILE STLL KEEP ONLINE IN FUTURE.
MANY THANKS,
GOD BLESSED YOU GLORY

Posted by: Gary Chaar on 09/10/2009

Hi David,
Thanks very much for informing us on this major change!
Like always you guys are extremly dependeable!
Many thanks,
Guillaume

Posted by: on 08/10/2009

Thanks for that David.
Much as nobody wants 'big brother' on our backs, it has to be seen that this rule was necessary to reduce the offensive and shallow practice where the same group of operators continually collude (illegal BTW) to provide regular fake testimonials for each others sequenced promotions. These 'operators' are known generally by the acronym 'guru', (from 'grasping, unhelpful, ruthless, users' I believe). Brian

Posted by: Brian on 08/10/2009

HI DAVID
ANY CHANCE YOU COULD WORK UP A STANDARD DISCLOSER FOR THE ELERT SYSTEM.THAT MAY BE INCERTED AS REQUIRED.
THANKS AGAIN FOR THE WARNING
JOHN

Posted by: on 08/10/2009

Hi David,

Thank you for notifying me about this. Its greatly appreciated.

Best Wishes....Gina

Posted by: Gina Robichaud on 08/10/2009

Hi David,
Add my thanks to the many you are receiving. Have been doing article marketing with the statement to learn more go to the site. Is this sufficient?

Posted by: Victor N. Smalley on 08/10/2009


Thank you for your creativity and for the opportunity to learn more about clean, safe and beautiful business, which may open up after the training by you.
http://www.quintessencesuccess.blogspot.com

Posted by: on 08/10/2009

Thanks for the advise, I shall act on this right away

Posted by: accounts on 07/10/2009

mmmm!

Big Brother!

Posted by: Paul on 07/10/2009

Thank you to David and all the team for this urgent elert and l will share on my blogs and all other sites. Ian

Posted by: aceone29 on 07/10/2009

I've e-mailed you David on this subject but would like to thank you publicly for bringing this to our attention.

With regards to on-elert advertising such as affiliate banners that link directly to a sellers site rather than to a site review site, do you think a disclosure line in the marketing page is a good idea and what about adsense and kontera monetizing?

Will they need to be disclosed also?

Posted by: danandmel2 on 07/10/2009

David,
Really appreciate the heads up.They are trying to change to much in Washington DC. What a mistake. Thanks again

Douglas

Posted by: on 07/10/2009