FTC Considers Holding Paid Web Bloggers Liable for False Brand Claims

The Federal Trade Commission (FTC) has apparently proposed amending its advertising guidelines to hold companies and paid word-of-mouth marketers, including bloggers and those on social networking sites, liable for making false statements to promote products. According to an FTC spokesperson, the proposal would bring the commission up to speed with evolving marketing practices. “The commission is attempting to update guidelines that are 30 years old so that they address current marketing techniques and in particular to address the issue of whether or not the safe harbor that’s currently allowed for ‘result not typical’-type disclaimers is still warranted,” he was quoted as saying.

Meanwhile, a public comment submitted by the American Association of Advertising Agencies has reportedly urged FTC to reconsider “overly stringent amendments that will likely result in advertisers abandoning longstanding legitimate advertising techniques, such as consumer testimonials, and rejecting new media forms, such as blogs and viral marketing.” The commission will vote on the revisions this summer after reviewing public comments. See Advertising Age, April 13, 2009.