Earlier this month, the FTC made a ruling that basically says, if you endorse something in your blog, and you don't disclose how you benefit from the endorsement, you could be fined. And the fine could be up to $11,000! If you don't believe me, here is an ABC story on it. http://www.abcnews.go.com/Business/mommy-bloggers-held-liable-product-reviews/story?id=8764885

So does that mean all Internet testimonials are now the subject of scrutiny? Celebrity endorsements have always been seen as paid for, but they don't have to disclose that in their ads. Does the Internet provide a higher level of trust than other advertising mediums? Or is it that Mr or Mrs Normal Public has become more believable than F. Amos Person endorsements?

Whether the ruling stands or not, if you are endorsing anything or anyone on the Internet, you might consider a statement describing your relationship with it or them just to avoid any problems.  For the record - I have nothing to do with ABC, nor with their writers, nor have I received any compensation or reward or even a thank you for linking to the article above. None of my relatives works for ABC, and I thought ABC was just the first three letters of the alphabet. Oh yeah, it's the first three notes, in that song, too! I don't even know who wrote that either and I have no relationship with them, get no royalties, and I am telling my kids to stop singing it!

Whew, that was close.

Heath Coker, Owner of Cape Group Real Estate
www.CapeGroup.com / capegroup@capegroup.com
508-548-8888  Licensed in MA
Its a beautiful day on Cape Cod!
@CapeGroup

REindex.com, The Site Engine®
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See our 2 Minute YouTube www.REindex.com/WhatIsREindex.html
@RealEstateIndex

 
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10 Comments on You Could Be Fined For Endorsing A Product In Your Blog

OCT
26
344,260 Points 3 Featured Posts Outside Blog

Aw geeeez...does that mean if I recommend a plumber, electrician....etc., etc., that I am also "on the hook" ? Toooo much gov't is not tooo good for anyone, hmmmm ?

9:12am • #1
4 Featured Posts

I guess the key here is if you benefit from them. For instance, if a lender recommended a realtor, do they have to say that the realtor sends their clients to him?   It's all in disclosing everything I guess.

9:14am • #2
Outside Blog

Yes I knew I blogged about it a couple of weeks ago.  It is rediculous.  Then I read the bill on cap and trade and it will hurt every homeowner.  What are we doing but with each bill giving up our ability to live in freedom.

9:15am • #3
166,460 Points 1 Featured Post

I think it's just a disclosure....we are all used to that. If we get something out of the endorsement (does the inspector give us a free inspection if we recommend him) then we need to disclose it.....a good idea for us to live by.

9:18am • #4
166,065 Points

If you watch the video it is aimed at people commenting on blogs, too.

9:22am • #5
336,300 Points 4 Featured Posts Outside Blog

Heath - this is such a broad based ruling. Do I have to "disclose" if I have ever received a margarita on the house from my favorite Mexican restaurant? Do I have to disclose that I own stock in a company if I mention their product? Do I have to disclose that I get a small pension from another company if I mention their product? Just what do I really have to disclose?

I am not considering actively hiding some relationship, but, if I have ever gotten a pen or pad of paper from a home inspection company, do I have to disclose that?

9:45am • #6
166,065 Points

No kidding! What if they bought me a cup of coffee once? What if they complimented me and made me feel better? What is the extent of "receiving" something.  lol.  I think the goals is to make what look like "Mom" endorsements disclose that they actually are paid ads.  But, some attorney somewhere will expand the idea to cover more than intended.

9:54am • #7
105,039 Points Outside Blog

Heath,

Either don't get me started or where do I start.  THIS ADMINISTRATION HAS LOST ITS MARBLES.  They treat everyone as having an IQ of 2 (Which appears to be the sum total of their collective IQ).

I agree with your post, but I have never had any prior dealings with you, you haven't paid me or compensated me in anyway for this post, however, we are both members of active rain and you will be getting "points" for your post and you and I will get point for my comment, although the points are not based in anyway as to the nature of the content of my post, or yours for that matter.

Oh yeah, we both are professionally licensed RE brokers and may, from time to time work collaboratively on real estate transactions in the future for which financial compensation will be involved, however the terms of such future collaboration and compensation have yet to be determined.

Have I left anything out?

 

10:06am • #8
386,639 Points 28 Featured Posts Localism Sponsor Outside Blog

I've not had a problem with this because I am governed by the same rules that apply to all journalists. In fact, if I receive a book to review and review it, I'm supposed to send back the book. I would want to know if I read an endorsement whether the person endorsing it is paid to do so. Gifts are payment. I prefer to rely on endorsements from neutral sources. I suspect most people do.

sacramento agent

10:29am • #9

What the hell!!!????  This is crazy.  I guess I can't mention that I blew my nose this morning into a Kleenex tissue.  What next?

11:36am • #10

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Heath Coker, Real Estate Broker

Falmouth, MA

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REindex.com & Cape Group Real Estate

Address: 279 Main St, Skype: heath.coker, Falmouth, MA, 02540

Office Phone: (508) 548-8888 x NA

Cell Phone: (508) 548-8888

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National/Local real estate topics, Cape Cod and the Internet. Cape Cod real estate company; and a national real estate web site REindex.com, The Site Engine® for other listing agents/brokers at no cost to them. I make a living listing and selling real estate.

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