The FTC, Compensated Reviews and You

The Federal Trade Commission (FTC) is planning to release guidelines for compensated reviews. Since it’s been talked about for most of the summer, you probably already know that. Do you ask bloggers to write about your company, products or services? Do you offer them freebies, coupons, gift certificates or compensation in any way? If you do, then you need to pay close attention when the regs do come out.

Because if the blogger doesn’t properly disclose their compensation, the FTC could come after them — and you. And that creates an interesting quandary. How do you try to get an honest review and still make sure the blogger discloses properly? And what exactly is going to constitute proper disclosure for the FTC?

You may also be responsible for false claims. The FTC gives an example (opens pdf) of skin care products. If you have a lotion that you give to a blogger for review, and said blogger recommends the lotion and claims it cures eczema, you can be liable for this unsubstantiated claim.

So it gets tricky. How do you make sure bloggers don’t make wild and crazy claims? You should address it up front. It helps if you have a boilerplate disclaimer that reviewers can use. It should mention that the blogger is being paid for their services. And you should emphasize that they should not make any unsubstantiated claims. The FTC also recommends that you take steps to halt any deceptive representations when you discover them.

It’s going to make blogger relations a bit stickier. But not impossible.

Find bloggers with whom you can build a trusting relationship. Read their blogs. Are they even-keeled? Brutally honest? Funny? What type of personality are you looking for? Have they made any claims previously that make you uncomfortable?

I don’t recommend requiring a positive review. But it wouldn’t hurt to ask to see the post before it goes live. In fact, you may want to draw up a contract stating the terms. Some bloggers are professionals, some are just hobbyists, so don’t make it a complicated contract. Just spell out clearly (please, no lawyer-speak) what you expect of the blogger. Whether you reserve the right to ask them to correct any mistakes, or just ask for fairness and honesty — it helps if you list your expectations up front.

That way, nobody gets a nasty surprise. And hopefully, you won’t have the FTC knocking on your door.

image: sxc.hu