Paid shills beware - FTC about to crack down on paid/biased endorsements

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FelixDeCat

Lifer
Aug 4, 2000
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http://finance.yahoo.com/news/...es&pos=1&asset=&ccode=

Excerpt:

Savvy consumers often go online for independent consumer reviews of products and services, scouring through comments from everyday Joes and Janes to help them find a gem or shun a lemon.

What some fail to realize, though, is that such reviews can be tainted: Many bloggers have accepted perks such as free laptops, trips to Europe, $500 gift cards or even thousands of dollars for a 200-word post. Bloggers vary in how they disclose such freebies, if they do so at all.

The practice has grown to the degree that the Federal Trade Commission is paying attention. New guidelines, expected to be approved late this summer with possible modifications, would clarify that the agency can go after bloggers -- as well as the companies that compensate them -- for any false claims or failure to disclose conflicts of interest.

It would be the first time the FTC tries to patrol systematically what bloggers say and do online. The common practice of posting a graphical ad or a link to an online retailer -- and getting commissions for any sales from it -- would be enough to trigger oversight.

"If you walk into a department store, you know the (sales) clerk is a clerk," said Rich Cleland, assistant director in the FTC's division of advertising practices. "Online, if you think that somebody is providing you with independent advice and ... they have an economic motive for what they're saying, that's information a consumer should know."

The guidelines also would bring uniformity to a community that has shunned that.

As blogging rises in importance and sophistication, it has taken characteristics of community journalism -- but without consensus on the types of ethical practices typically found in traditional media.

Journalists who work for newspapers and broadcasters are held accountable by their employers, and they generally cannot receive payments from marketers and must return free products after they finish reviewing them.

The blogosphere is quite different.

"Rules are set by the individuals who create the blog," said Lee Rainie, director of the Pew Internet and American Life Project. "Some people will accept payments and free gifts, and some people won't. There's no established norm yet."

Bloggers complain that with FTC oversight, they'd be too worried about innocent posts getting them in trouble, and they say they might simply quit or post less frequently.

Between ads on her five blogs and payments from advertisers who want her to review products, Rebecca Empey makes as much as $800 a month, paying the grocery bill for a family of six. She also has received a bird feeder, toys, books and other free goods.

I wonder how this will affect certain video card makers, etc. If they create a reporting system for undisclosed paid endorsements this might have a chance of working.

So much for viral marketing. :laugh:
 

SunnyD

Belgian Waffler
Jan 2, 2001
32,674
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www.neftastic.com
They already banned someone (again, for the very last time).

Of course this might be a problem for someone else, yet another someone and a fourth someone in a particular subforum that zealously defend a given "green" brand of video card and bash anything from the opposing camp no matter how competitive that camp's products may actually be.


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YHPM

Senior Anandtech Moderator
Common Courtesy


:(
 

Vette73

Lifer
Jul 5, 2000
21,503
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I don;t have a problem with people endorsing something as long as it is stated and well known.


But the viral crap of people acting like joe blow saying how good something is for no other reason then it is good is BS. I read amazon, sears, and other review sites before I bought my washer/dryer/stove/etc... and if the reviews were mostly fake it would piss me off.
 

FelixDeCat

Lifer
Aug 4, 2000
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Originally posted by: Marlin1975
I don;t have a problem with people endorsing something as long as it is stated and well known.


But the viral crap of people acting like joe blow saying how good something is for no other reason then it is good is BS. I read amazon, sears, and other review sites before I bought my washer/dryer/stove/etc... and if the reviews were mostly fake it would piss me off.

The article does mention one retailer who excluded negative reviewers from participating. That company was owned by Sears.
 

Vette73

Lifer
Jul 5, 2000
21,503
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0
Originally posted by: FelixDeKat
Originally posted by: Marlin1975
I don;t have a problem with people endorsing something as long as it is stated and well known.


But the viral crap of people acting like joe blow saying how good something is for no other reason then it is good is BS. I read amazon, sears, and other review sites before I bought my washer/dryer/stove/etc... and if the reviews were mostly fake it would piss me off.

The article does mention one retailer who excluded negative reviewers from participating. That company was owned by Sears.

Its pretty easy to see sites when they block out bad reviews. EVERY product will have some bad reviews, even if its from idiots. What i look for is the same problem at different sites.
The washer my wife wanted had problems and people kept saying the same thing at many different places so I passed on it. But if all I saw was only good I might pass on or at least look into it more.

I think newegg got heat years ago from blocking bad reviews. But most I read now seem pretty even.
 

Special K

Diamond Member
Jun 18, 2000
7,098
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Originally posted by: SunnyD
They already banned Rollo (again, for the very last time).

Of course this might be a problem for keysplayr, Wreckage and chizow.

Are they product testers/focus group members as well?

 

nanette1985

Diamond Member
Oct 12, 2005
4,209
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I hope they go after Amazon. Their review system is a joke.

I'd love to know who got thousands of dollars for a 200-word post.
 
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