Freebies Aren’t Free, According to the FTC

October 19, 2009 at 2:27 pm | Posted in News | 7 Comments

USA_federal_trade_commission_001Back when Scavenging.wordpress.com was still brand-new, I searched the Web for other blogs on similar topics. It struck me then that a lot of blogs with “green” and “eco” and such in their names had a LOT of threads enthusiastically praising products. Like … ready-to-eat vegan food. Clothes and decor made from recycled materials. Low-energy gadgets. I wondered why, if these sites were ostensibly about a certain kind of minimalism, they kept promoting merchandise to buy. Not that I’m a minimalist myself – I’m just not into shopping, especially when it involves paying retail for brand-new items.

At the time, I suspected that those threads on those blogs had something to do with free merchandise having been given to the bloggers in exchange for online publicity. Turns out I guessed right, and now the Federal Trade Commission is getting involved. Revisions to the FTC’s Guides Concerning the Use of Endorsements and Testimonials in Advertising announced today specify that “material connections” (such as or free products) must be disclosed by those who promote these products: ” The revised [guidelines] specify that while decisions will be reached on a case-by-case basis, the post of a blogger who receives cash or in-kind payment to review a product is considered an endorsement. Thus, bloggers who make an endorsement must disclose the material connections they share with the seller of the product or service.”

According to ReadWriteWeb, “bloggers who fail to disclose that they have received freebies when they write about a product can now be fined up to $11,000 per post. … Because these posts are now officially considered endorsements, bloggers who receive freebies must now disclose this fact on their sites.” Nonetheless, “blogging Payola is unlikely to go away completely because of these new rules.”

7 Comments »

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  1. […] Freebies Aren’t Free, According to the FTC […]

  2. Thanks for this useful information.i have bookmark your site and tolf my children to be reading your post daily.am trying to build up mine at http://freestuffsdepot.com/
    Keep your good work on.

  3. Thanks for the article. It’s true they aren’t free but they still don’t cost the user a penny. The surveys they complete do result in money for the company though. You can find more information about free samples on the website. Thanks again!

  4. I love the information you gave us. Thanks a bunch for this- keep up the great work!

  5. Nice article i like the information provided by you and i am going to follow it definitely.

  6. http://www.columbiaoutlet.net/
    Jackets originated in the Nordic and Eskimo national costumes.

  7. Thanks for sharing this, even the information is from 2009, it is the first time I read this. It is a good advice for newbees and older guys too.


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