Search Site   Web   Archives - back to 1987 Google Newspaper Archive - back to 1901Powered by Google

Federal Trade Commission wants to clear up relationship between online reviewers and product manufacturers

By Ivan Penn, Times Staff Writer
In Print: Saturday, September 26, 2009


Story Tools
Comments Contact the editor
Email Newsletters  
Social Bookmarking
ADVERTISEMENT
ADVERTISEMENT
Loading Video...
Loading...
Back Next

We see them regularly, the ads on a Web site or blog with some consumer proclaiming, "I lost 50 pounds in a week."

Or the miracle cure drink. The Fountain of Youth skin product in a bottle.

And then, in fine print, the note at the bottom of the ad with an asterisk: Results may vary.

These days, the Internet is saturated with the ads and word-of-mouth claims on blogs by so-called grass roots promoters who are sometimes paid and sometimes just given free samples.

The flooding of the Internet with "bogus product reviews," as the National Law Journal recently described, is known as "astroturfing."

The Federal Trade Commission wants to tighten up on it all. So the FTC is revising its "Guidelines Concerning the Use of Endorsements and Testimonials in Advertising."

The guidelines haven't been revised since 1980, so blog postings aren't covered. The feds want to incorporate blogs and tweak the language in the guidelines a bit to help consumers better understand what they can realistically expect from the advertised product and who exactly is reviewing the item.

So under the new guidelines, the bloggers and advertisers would be required to disclose compensation, such as payment or even that they received free samples (something the advertising industry opposes because, well, it's a sample, not a payment).

But the idea is that consumers should know the relationship between the blogger and the product manufacturer.

The FTC takes the position that a blogger who not only gets paid but receives free samples might be more inclined to speak favorably about a product.

The other question is about results. The FTC wants that clear, too.

So rather than "results may vary," consumers would more likely see something like "the average person will lose 2 pounds" instead of the 50 pounds that the now-perfect model in the picture says she lost.

Commissioners are expected to get a final version of the new guidelines and vote this fall — only the new guidelines won't carry any direct penalty.

So why craft guidelines that appear to be toothless tigers?

"They basically help advertisers stay out of trouble," said Betsy Lordan, a spokeswoman for the FTC.

But how?

Barry Reingold, a lawyer with Perkins and Coie LLP of Washington, D.C., and a representative of the advertising industry, says the FTC will be able to go after advertisers with the new guidelines. He says an advertiser that violates the guidelines would then be looked at for false advertising, which is illegal and punishable.

Advertisers are disturbed. Not so much about any penalties, though, but about what's in the guidelines.

"Results may vary" was generic enough to give advertisers some wiggle room. But "the average person will lose 2 pounds" is specific, too specific for the industry.

"What's the average consumer? How heavy? How light? How often are you exercising?" Reingold asks.

Indeed. But the average won't lose 50 pounds in two weeks, either. So some tweaking of the guidelines is in order.

Advertisers argue that the proposed guidelines will increase their costs and as a result, the cost to consumers.

Reingold rightfully said that "no one offered a middle ground."

So here's the Edge:

• Know what you're getting into. Reingold says the FTC focuses heavily on weight-loss advertising, because "more money is wasted on weight loss programs than any other." So check the fine print and what the program might mean for you.

• Check the source of the endorsement or blog review. At times like these, with or without FTC guidelines, consumers should carefully consider the source of the information for the review and the relationship between the person and the product's manufacturer.

Ivan Penn can be reached at ipenn@sptimes.com or (727) 892-2332. Follow him on Twitter at www.twitter.com/Consumers_Edge.


[Last modified: Sep 25, 2009 08:36 PM]

[Get Copyright Permissions] Click here for reuse options!
Copyright 2009 Tampa Bay Times


Join the discussion: Click to view comments, add yours
 

(Separate multiple emails with a comma)



Loading...



Send me a copy
 
* Indicates a required field
Privacy Policy (Opens in new window)

Want More Features?

ADVERTISEMENT

 
ADVERTISEMENT