2. I've heard that every time I
mention a product on my blog,
I have to say whether I got it
for free or paid for it myself.
Is this true?
3. I've read that bloggers who
don't comply with the Guides
can be fined $11,000.
Is this true?
4. I have a website that reviews
local restaurants. It's clear
when a restaurant pays for an
ad on my website and I’m told I
need to disclose which
restaurants give me free meals.
Is this true?
6. Why You Should Care?
• The Federal Trade Commission is
Actively Enforcing the Guidelines.
• Key to credibility and protecting your
brand.
• Be a savvy endorser.
© 2011 Creque Law
8. Blogger Endorsements
• Users may not expect the reviewer to have a relationship
with the company that’s products are mentioned.
• Average blogger held to a higher standard – than
celebrities.
• Recommendations and Likes are a natural – and growing
part of social media.
Their power:
• 90% of consumers online trust recommendations from people they know.
• 70% trust opinions of unknown users.
Econsultancy, July 2009 Report
© 2011 Creque Law
11. There is a Law for That
Federal Trade Commission Act says:
• You cannot engage in deceptive or misleading
practices. (Section 5 of the FTC Act -15 U.S.C. 45)
• An act or practice is deceptive if it mislead “a significant minority”
of consumers.
• Endorsement and Testimonial Guidelines. (16 CFR Part
255)
• Guidelines for advertising sets a truth-in-advertising bar.
© 2011 Creque Law
12. Truth-In-Advertising
“If there’s a connection between the
endorser and the marketer of the
product that would affect how people
evaluate the endorsement, it should be
disclosed.”
© 2011 Creque Law
13. When Do the Rules Apply?
• If you:
• Receive free products or other perks
• Either individually or as part of a network
marketing programs
• “Compensation” is about more than money:
• In-kind services
• Free products
• Perks
• Gifts
© 2011 Creque Law
14. What if I Paid for the Product?
• If you write a testimonial about a
product you paid for yourself the law
does not apply.
• Same true if get a free product
because a store is giving out free
samples to customers.
© 2011 Creque Law
15. Role of Product Value
• Value doesn’t matter. It could be $1 or
$1,000.
• It’s about the relationship with the company
or product.
If you have a relationship with a marketer
who’s sending you freebies in hope you’ll
write a positive review, you should disclose
that you got the product for free. © 2011 Creque Law
16. What Can I Say?
• You can’t talk about your experience with a
product if you haven’t tried it.
• If you were paid to try a product and you
thought it was terrible, you can’t say terrific.
• You can’t make claims about a product that
would require proof.
• Example: A product cures a particular disease if there
isn’t scientific evidence to prove it.
© 2011 Creque Law
17. What About Free Speech?
Speech when Compensate Becomes
Commercial Speech
• When acting on behalf of or at the request of
an advertiser
• Do not need to be a “professional blogger”
• Includes any “compensation”
• Can be regulated
© 2011 Creque Law
20. The Single Disclosure
• Not a solution.
• “Many of the products I discuss on this site are
provided to me free by their manufacturer.”
• Doesn’t satisfy the FTC’s disclosure
requirements.
• Hurts your credibility and brand.
© 2011 Creque Law
21. Common Blogger Mistakes
• Do not disclose at all.
• Bury disclosure.
• Bottom of the website page or on a different
page.
• Hard to see.
• Small type, grey text on black background, etc.
© 2011 Creque Law
22. How to Disclose
• Name the marketer.
• Identify the “compensation.”
• Proximate placement.
© 2011 Creque Law
23. A Step Farther
Consider Disclosing even when nothing was
exchanged:
“I received no compensation for this post.
Giveaways are sponsored by myself. All
opinions expressed in this post are 100%
mine.”
© 2011 Creque Law
24. What’s at Stake?
• Federal Fine
• Costly investigation
• Litigation
• Ongoing Scrutiny from Government
• Brand Credibility
• Blog Shutdown
© 2011 Creque Law
26. Questions?
Hayden Creque
Phone: 320.247.3439
Email: hayden@crequelaw.com
Web: http://crequelaw.com
Blog: http://crequelaw.com/blog
Skype: hayden.creque
