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	<title>TeKnocratix &#187; media</title>
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		<title>Bloggers Could Be Fined $11,000 Under New FTC Regulations</title>
		<link>http://teknocratix.com/2009/10/05/bloggers-could-be-fined-11000-under-new-ftc-regulations/</link>
		<comments>http://teknocratix.com/2009/10/05/bloggers-could-be-fined-11000-under-new-ftc-regulations/#comments</comments>
		<pubDate>Mon, 05 Oct 2009 23:56:47 +0000</pubDate>
		<dc:creator>jcenters</dc:creator>
				<category><![CDATA[U.S. News]]></category>
		<category><![CDATA[astroturfing]]></category>
		<category><![CDATA[blogging]]></category>
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		<guid isPermaLink="false">http://teknocratix.com/2009/10/05/bloggers-could-be-fined-11000-under-new-ftc-regulations/</guid>
		<description><![CDATA[<p><a href="http://teknocratix.com/wp-content/uploads/2009/10/estrada_glasses300x1511.jpg"><img style="border-bottom: 0px; border-left: 0px; margin: 0px 10px 0px 0px; display: inline; border-top: 0px; border-right: 0px" title="estrada_glasses-300x151" border="0" alt="estrada_glasses-300x151" align="left" src="http://teknocratix.com/wp-content/uploads/2009/10/estrada_glasses300x151_thumb1.jpg" width="263" height="135" /></a> The FTC today released <a href="http://ftc.gov/opa/2009/10/endortest.shtm" target="_blank">new guidelines</a> that threaten to fine bloggers up to $11,000 for what the organization considers an undisclosed paid endorsement.</p>
<p>However, the commission has a broad definition of what constitutes an endorsement.</p>
<p>“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,” said a release by the FTC.</p>
<p>This could be a legal nightmare for reviewers, who often rely on <p>Continue reading <a href="http://teknocratix.com/2009/10/05/bloggers-could-be-fined-11000-under-new-ftc-regulations/">Bloggers Could Be Fined $11,000 Under New FTC Regulations</a></p>]]></description>
			<content:encoded><![CDATA[<p><a href="http://teknocratix.com/wp-content/uploads/2009/10/estrada_glasses300x1511.jpg"><img style="border-bottom: 0px; border-left: 0px; margin: 0px 10px 0px 0px; display: inline; border-top: 0px; border-right: 0px" title="estrada_glasses-300x151" border="0" alt="estrada_glasses-300x151" align="left" src="http://teknocratix.com/wp-content/uploads/2009/10/estrada_glasses300x151_thumb1.jpg" width="263" height="135" /></a> The FTC today released <a href="http://ftc.gov/opa/2009/10/endortest.shtm" target="_blank">new guidelines</a> that threaten to fine bloggers up to $11,000 for what the organization considers an undisclosed paid endorsement.</p>
<p>However, the commission has a broad definition of what constitutes an endorsement.</p>
<p>“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,” said a release by the FTC.</p>
<p>This could be a legal nightmare for reviewers, who often rely on manufacturers to lend the products for review. In fact, most reviewers depend on this system, with a few rare exceptions such as <a href="http://www.twit.tv/" target="_blank"><em>This Week in Tech’s</em></a> <a href="http://en.wikipedia.org/wiki/Leo_laporte" target="_blank">Leo Laporte</a>. Even then, he doesn’t <a href="http://www.thetechnewsblog.com/2009/06/07/leo-laporte-outburst-at-mike-arrington/" target="_blank">buy every single product he reviews</a>.</p>
<p>This is the first time the guidelines have been updated <a href="http://www.techcrunch.com/2009/10/05/ftc-values-sponsored-conversations-at-11000-apiece/" target="_blank">since 1980</a>. Under those rules, endorsements were considered perfectly fine, as long as the paid endorsers included the line, “results not typical,” but the new mandate removes that safe harbor.</p>
<p>Since this only applies to bloggers residing within the United States, it’s hard to imagine this will do much to curtail <a href="http://en.wikipedia.org/wiki/Astroturfing" target="_blank">astroturfing</a>. And it’s uncertain if this will apply to <a href="http://www.washingtoncitypaper.com/blogs/artsdesk/general/2009/10/05/the-federal-trade-commission-goes-after-bloggers-spares-journos-who-do-the-same-thing/" target="_blank">traditional reporters</a>, however celebrity endorsements are specifically mentioned.</p>
<p>The FTC says that it will enforce the new rules on a “case-by-case basis.” I can’t help but wonder if this will create a chilling effect for American bloggers.</p>
<p><a href="http://www.ftc.gov/os/2009/10/091005endorsementguidesfnnotice.pdf" target="_blank">Read a PDF of the new regulations.</a></p>
<p>Update 20:25 CST: Leo Laporte commented about this <a href="http://twitter.com/leolaporte" target="_blank">on Twitter</a>: “…Fantastic news! I&#8217;m clean. Are you?” [In response to <a href="http://twitter.com/wa4hrk" target="_blank">@wa4hrk</a>]</p>
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