Bloggers & Advertisers Beware: FTC Rules on Sponsored Endorsements Create Major Risks for “Word of Mouth” Advertising

Digital Media Lawyer Blog:  “The rules affect both advertisers and bloggers who cooperate on sponsored endorsements. For example, the new rules state that the FTC intends to hold both advertisers and bloggers liable for false and misleading statements made by either party in the course of an endorsement. This means that an advertiser who provides free products to a blogger can be liable if the blogger makes false statements about the products in her blog. And the blogger can be liable if she repeats false statements from the advertiser. Both parties can also be liable if the blogger fails to disclose her connection with the advertiser.”

New FTC Blog Rules: Overbroad or Overblown?

Law.com Legal Blog Watch:  “To read reactions to the Federal Trade Commission’s new guidelines announced this week on product testimonials and endorsements, one would conclude that bloggers must now tiptoe through a minefield of disclosures or else face the strong arm of the federal government and penalties of as much as $11,000. Blogs as varied as Fashionista, Wired’s Epicenter and CNET’s Digital Media warn that any failure by a blog to disclose receipt of a freebie or payment from a company would violate the guidelines and expose the blogger to enforcement action.”

Companies Say No to Friending & Tweeting

Law.com:  ‘Lawyers are calling it social networking burnout.  Back-to-back studies, the most recent issued Tuesday, show a big chunk of corporate America is banning communication wonders like Twitter and Facebook from the workplace.   According to the latest survey of more than 1,400 U.S. companies, more than half (54 percent) said they prohibit employees from visiting sites such as Twitter, Facebook and MySpace while on the clock.”

New FTC Rules Affect Bloggers & Testimonial & Celebrity Ads

FTC Publishes Final Guides Governing Endorsements, Testimonials – Changes Affect Testimonial Advertisements, Bloggers, Celebrity Endorsements

October 5, 2009.  The Federal Trade Commission today announced that it has approved final revisions to the guidance it gives to advertisers on how to keep their endorsement and testimonial ads in line with the FTC Act.

The notice incorporates several changes to the FTC’s Guides Concerning the Use of Endorsements and Testimonials in Advertising, which address endorsements by consumers, experts, organizations, and celebrities, as well as the disclosure of important connections between advertisers and endorsers. The Guides were last updated in 1980.

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MySpace Threats Reach Across State Lines

Law.com:  “Pennsylvania law enforcement authorities have jurisdiction to prosecute domestic violence charges for comments posted on a defendant’s MySpace page from a computer in another state, a Lawrence County common pleas judge has ruled.  Judge J. Craig Cox drew upon a Connecticut appellate court’s decision to determine that because defendant John C. Bragdon included specific references to Lawrence County and the city of New Castle, Pa., in MySpace posts that threatened his estranged wife, the posts could be distinguished from general Internet postings ‘because they are decipherable only to Pennsylvania residents.'”

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