How To Stay In the FTC’s Good Graces

The FTC seems to have opened a can of worms by introducing a new set of guidelines for bloggers and affiliate marketers that will go into effect on December 1st, 2009. The FTC is trying to make things more transparent on the web and protect the consumers in the process. So the intentions are certainly positive. Nevertheless, a lot of bloggers are extremely nervous about the FTC’s ruling. Some are worried that they won’t be able to make enough money to stay afloat by providing full disclosure on their blogs. Others are worried about paying up to $11,000 per violation. That could certainly cripple even a large blogging network.

Affiliate marketing has quickly become one of the easiest ways to make money from blogs. Let’s say you have a blog about health products. You can always make money with Adsense and through other channels, but you shouldn’t forget about the affiliate products in your niche either. Here is where problems arise. There are many bloggers who get freebies from product manufacturers to review a product. They go on to write a review on those products. The tendency here is to write a positive review to show appreciation for the product manufacturers’ gesture. That’s not how you are supposed to review a product. Your review needs to be unbiased and objective. But if you are getting compensated by some a company, would you still point out the major flaws in its products? If you want to stay compliant with the FTC rules, you should!

One way to get around this issue is by returning the freebies that product makers send you. I have sent back review products in the past and usually that won’t be a trouble if you discuss things with manufacturers beforehand. By returning freebies, you show the FTC that you are not in it to get freebies. Of course, you can always disclose what you are getting to write a post. That’s probably less painful.

If you are a blogger nervous about the latest FTC ruling, here are a few ways to keep yourself and business covered:

• Disclosure: disclose everything and make it as clear as possible. That way nobody can claim you were being deceptive on your blog. If you are getting a free product in exchange for a review, make sure you mention that in your post. Your audience deserves to know.
• No Freebies: one way to protect yourself against potential liabilities is by returning the review products that companies send you. It’s inconvenient, but at least you are keeping yourself protected. Do make sure to mention your policy on your blog. Just claiming that you are returning review units to manufacturers doesn’t actually mean that the FTC will believe you. So don’t forget to keep your documentation.
• Avoid Affiliate Products: if you are not making too much money with affiliate products or it’s not part of your overall strategy, then link directly to manufacturers instead of using affiliate links. This is not an option for everyone though. In case you are using affiliate products, make sure you disclose that somewhere on your site.
• Avoid Fake Reviews: if you have not reviewed a product, do not write a review on it. It’s very simple. Avoid fake testimonials or anything fake on your blog. You’ll get caught eventually.
• Get a Lawyer: if you own a large blog or a blog network, you probably need your own lawyer. Not everyone can afford a lawyer these days, but that’s still the best way to keep your business protected. The FTC is more likely to go after larger blogs, so if you get a significant amount of traffic on your blog, you may need a lawyer.

Many bloggers are blaming the FTC for everything that is wrong in this world. But the FTC is only doing its job to protect the consumers. If you write fake reviews on your blog, the blame is on you.