05 October 2009 | Author: L. Sutherland News Editor

Bloggers must say when they're paid

The US Federal Trade Commission has decided that bloggers will henceforth be required to disclose clear details of any payments or freebies they are given by companies whose products they review.

This could have a massive impact on social media and the way that bloggers reviews are received by the public. While many users read blogs assuming that the writers are being paid for favourable reviews, others assume that the authors are always behaving with the fullest integrity.

By disclosing which reviews have effectively been "paid" for, even if no actual money has passed hands, users will find it easier to use their own judgement when it comes to online reviews. However, many bloggers who enjoy free products without feeling the need to let their readers know are likely to be disgruntled by the ruling.

According to Yahoo! Finance, the ruling will come into effect on December 1. This is the first time since 1980 that the guidelines on endorsements and testimonials have been revised - and the first time that the rules have covered bloggers. Micro blogging site Twitter will fall under the same rules and regulations as blogs in the revised guides too.

Commissioners voted 4-0 to approve the guidelines, as the FTC anticipated, and penalties will range to fines of up to $11,000 for a single violation. The revised Guides Concerning the Use of Endorsements and Testimonials in Advertising also take a look at celebrity endorsement and now state that endorsers can be as liable as advertisers when they choose to endorse a product. They also must make transparent the connections between themselves and the companies they are supporting. Many other countries are expected to follow suit and consider revising their own rules regarding testimonials and endorsements, potentially changing the playing field for bloggers worldwide.