Yesterday, the Federal Trade Commission revised its Guides Concerning the Use of Endorsements and Testimonials to specifically define “product endorsement” as it relates to new media, specifically blogging and by extension, social networking. The FTC is “urging bloggers who review products, from a book to a video game system, to disclose if they received the product for free when giving an endorsement.” (citation: Galley Cat) Endorsement includes products given to yo u by the vendor and/or producer.

Receiving the product for review is considered compensation for doing the review, particularly if you plan to keep it. Let’s say you review Product A and link to a vendor (let’s say Amazon.com, that is considered promoting the product for sale. The image and link, in effect create an advertisement to buy the product.

There is one exception: Newspapers. Newspaper book reviewers are exempt, because “the newspaper receives the book and it allows the reviewer to review it, it’s still the property of the newspaper.

The rules take effect December 1, 2009.

Why do I care? Because, according to this Washington Post article, breaking these new guidelines could generate up to $11,000 in fines.” 

What does it mean in the context of the Mom’s Choice Awards?

• If you are a judge for the Mom’s Choice Awards and you publish a review of products you received, then you MUST disclose how you got the product and for what purpose. We would also recommend that you identify the charity to which you have donated the product. The Mom’s Choice Awards sends the materials to you with the understanding that they will be donated to charity, not kept for personal use.

• If you are a vendor/producer who promotes your products on your website/blog using testimonials from reviewers, you should ask for their disclosure policy and/or explain that you donated the product for evaluation. Example: The FTC comes to your site and sees that Ima Star reviewed your product, and you are kind enough to include a link to their website, because reciprocal links help you both. The FTC visits Ima Star’s website and sees that she wrote a review promoting your product. That’s an endorsement! People read Ima Star’s website and trust her as recommending something!

What should I do?

If you have a website or blog that reviews products or services, we strongly recommend that:

1. You make sure your review policy is easily accessible on your blog/website. 
2. Add your disclosure rules to your “review policy.” This should also include what you do with the products when you are finished.
3. Include in every review where you got the product (did you ask to review it, did a vendor contact you, did you borrow it from the library, etc.); why you are reviewing it; and what you are doing with the product now that your review is done.

The good news is you have about 45 days to think about your policy and put something together for your website/blog. This topic is likely to create broad discussions within the blogosphere. The FTC Guidelines themselves are not consumer-friendly. We would encourage you to visit trusted sources who can “translate” the material and offer practical, reasonable guidance.