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Congratulations to the Saints and to New Orleans
And many thanks for a great Super Bowl game that was good to the very last play.

Kevin Bacon wins much-deserved Golden Globe for 'Taking Chance'
We were happy to see actor Kevin Bacon win a Golden Globe for a film that explored the costs of sacrifice by our military. A column we did after viewing the film is one of the most-read columns here at The US Report.

[Feb. 4, 2010]

An audit's bad enough without a shotgun

The Internal Revenue Service (IRS) intends to purchase sixty Remington Model 870 Police RAMAC #24587 12 gauge pump-action shotguns for the Criminal Investigation Division.

[Feb. 3, 2010]

Tuesday
06Oct2009

FTC says bloggers must be honest about paid reviews, freebies

TUSR contributor Rebecca Day wrote an article about possible health benefits of teas. It is a standing policy here that we accept no compensation or freebies in exchange for a review. Day just happens to like tea and she decided to write about it.Shown here is a favorite green tea, Fruta Bomba.The Federal Trade Commission has had a wary eye on bloggers for awhile, and now the agency has published new guidelines for bloggers who publish testimonials and endorsements. Bottom line: if you get a free sample of a product for review, and you write about the product, you must disclose your arrangement. Same goes for writing a paid review—you must disclose your relationship with the advertiser. You also must explain whether your review describes a typical result or whether the results are not typical. The FTC offered examples in an apparent attempt to clarify the guidelines.

An announcement from the agency said:

“The revised Guides also add new examples to illustrate the long standing principle that “material connections” (sometimes payments or free products) between advertisers and endorsers – connections that consumers would not expect – must be disclosed. These examples address what constitutes an endorsement when the message is conveyed by bloggers or other “word-of-mouth” marketers. The revised Guides 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. Likewise, if a company refers in an advertisement to the findings of a research organization that conducted research sponsored by the company, the advertisement must disclose the connection between the advertiser and the research organization. And a paid endorsement – like any other advertisement – is deceptive if it makes false or misleading claims."

The new guidelines will also affect celebrities. FTC’s announcement said, “Celebrity endorsers also are addressed in the revised Guides. While the 1980 Guides did not explicitly state that endorsers as well as advertisers could be liable under the FTC Act for statements they make in an endorsement, the revised Guides reflect Commission case law and clearly state that both advertisers and endorsers may be liable for false or unsubstantiated claims made in an endorsement – or for failure to disclose material connections between the advertiser and endorsers. The revised Guides also make it clear that celebrities have a duty to disclose their relationships with advertisers when making endorsements outside the context of traditional ads, such as on talk shows or in social media.”

The guidelines are just that—guidelines. The announcement referred to them as “administrative interpretations of the law intended to help advertisers comply with the Federal Trade Commission Act.”

Pitfalls of not adhering to the guidelines include potential lawsuits. The burden of proof would be on the FTC.  Whatever the case, let the blogger beware.

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