New FTC Guidelines to Impact Bloggers, Celebrity Endorsers

This story is a little inside baseball for the blogging community, but it's important to note that the Federal Trade Commission has updated their guidelines for endorsements for the first time since 1980, and the new guidelines, going into effect today, will directly impact bloggers, social media-types (Twitters and other microbloggers) and celebrity endorsers.

The new rules shouldn't have as much of an effect on sports bloggers as, say, technology bloggers, but there are some areas of concern for those of us who cover sports, specifically those who review products and other forms of media:

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.

The 'in-kind payment' is a somewhat gray area. If a blogger is sent a golf club to review, it's undoubtedly necessary to disclose that the club was sent 'in-kind' with the understanding that after the review, the author may keep the club. That should be disclosed. Will the same be necessary for screener copies of movies or books for review? If a book has a retail value of $30 but was sent out for review, how is that different than the aforementioned golf club of, for the sake of this example, a similar price point? Also of note is the fact that the new guidelines affect not just online media, but celebrity endorsers as well.

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.

So the days of celebrities (and celebrity media) randomly plugging a product on Twitter may soon be over. Or, at the very least, a few of those 140 characters will be eaten up by disclaimers.

And since it's December and the year in reviews are cascading around the internet, here are a few of the best celebrity-endorsed ads we could find. Disclaimer: I do not own any of these products. Well, maybe a pair of Nike's but I got them for free and wasn't asked to review them. (Looks both ways. Ducks.)

Tiger Woods Gillette Ad.
There are a lot of these ads, including the creepy one where Derek Jeter helps a dude in a coffee shop pick up some girl. At least I think that's what is going on. But this one is the best of the bunch, and with Tiger in the news for some pretty serious things, it's good to remember the guy does have a humorous side.

Tyler Hansborough Acura Commercial.
Really, all you can say is "wow" after watching this commercial.

Kobe and LeBron Puppets.
I was as critical as anyone about the first set of ads, but totally came around to them by the end. Like them or hate them, you remembered them.

Peyton Manning Speaks Chinese.
Peyton Manning endorses virtually everything, but this commercial with Justin Timberlake and Erin Andrews is the one in the line of Sony Bravia commercials that stands out the most. They're playing table tennis, so let's have them speak Chinese! (Note: the YouTube says Mandarin, but I am unable to independently verify that.)

Pacquiao Sells Dairy?
This has to be one of the greatest endorsements ever. Professional boxer – and future Congressman? – Manny Pacquaio endorsing a line of dairy products. He seems so happy to drink his Magnolia milk first, doesn't he?

Zaxby's Makes Herschel Even Nicer.
I'll admit that I'm a fast food junkie and I've never in my life heard of Zaxby's. Andy Hutchins says it's a southern thing. They've gotten the likes of Jerry Rice and other celebs to plug their sandwiches, but none better than Herschel Walker standing and eating while a fan invites him to a birthday party. He's Herschel Walker and he's a football player.

Let us know what some of your favorites are.

This post originally appeared on the Sporting Blog. For more, see The Sporting Blog Archives.