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BLOGGER DISCLOSURE LAW. Federal Trade Commission 16 CFR PART 255
People who endorse products who are manufacturers or dealers thereof, or who otherwise have a financial interest in the product will disclose such relationships.
The Federal Trade Commission recently settled charges against a company accused of using misleading online reviews. The FTC claimed Legacy Learning Systems advertised a guitar learning program with endorsements and reviews. These supposedly came from ordinary consumers or reviewers. The company failed to disclose these endorsements and reviews were provided by the company’s paid marketing affiliates.
Such an arrangement violates the Federal Trade Commission Act. It’s a deceptive and misleading practice. The company has agreed to pay $250,000 and maintain a system to review and monitor its affiliate marketers’ representations and disclosures.