While the new ruling [for the most part] affects bloggers who are reviewing or endorsing products, the FTC rules do not target them specifically, so it can be assumed that everyone using a blog, social networking, or a website in general for their business needs to be aware of the rules… even if you don’t plan on following them. Knowledge is power, ya know??

So the brief synopsis is that the FTC is demanding full disclosure. The folks at the FTC worry that with all the new media forms out there, consumers are generally confused by what they are reading online – and while consumers tend to assume (or at least, that’s what the FTC says) that a movie reviewer got to see the movie they are reviewing for free (so the consumer understands that the reviewer benefited in some way from the review and therefore may be biased) they don’t realize that a blogger may be getting some benefit out of reviewing or endorsing a product (and – therefore – be a bit biased too). I think the FTC is not giving enough credit to consumers…. but hey, that’s just me.

So now onto the rule — the FTC says anyone reviewing or endorsing a product online must fully disclose what benefit they are getting from publishing said review/endorsement. So, for example, if Jane Doe Mommy Blogger writes up a review on the latest type of Brand X diaper, she MUST publish the fact that Brand X sent her a months supply of free diapers to test. And by doing this, the reader takes into consideration that Jane Doe may be a bit biased because 1) Free diapers are awesome and 2) Jane Doe may be giving a good review so she can get more free stuff from Brand X or another company.

Now, the argument from bloggers is that 1) the FTC is making bloggers look unethical in their endorsements and they are offended and 2) the rule ONLY applies to stuff online and not other forms of media so it’s not fair. Everyone in entitled to their own opinion. My personal thought is that if you protest full disclosure then maybe maybe you have something to hide. Am I wrong?

Anyway — on to how this affects you.

Most of my clients are online entrepreneurs — not necessarily bloggers who review or endorse products for a living, but most everyone uses testimonials in their marketing. It’s a gray area in the FTC ruling [using client testimonials for your own marketing, that is], but my motto is ‘better safe then sorry’. The FTC is most likely not going to go after the blogger if they do not fully disclose benefits — however as consumers become more aware of these new rules, they will be looking for the full disclosure. And if they don’t see it, they may end up not trusting the review. There’s no way to tell… but again, better safe then sorry.

So my advice to anyone using testimonials in their marketing — Full Disclosure is the way to go.

I would guess that 99% of the testimonials you get from clients are honest to goodness testimonials. Even if you asked for them, you are probably not offering anything in return for said testimonial. But if you are… you should say so. New FTC rule or not.

Where ever you have posted testimonials from your clients, make sure everything on there is the full, honest truth, with any benefits the client received from providing the testimonial right there in black and white.  Honesty is the best policy (thanks, kindergarten, for providing me with that life lesson) and when reading a review, testimonial or endorsement knowing that the author benefited in some way from publishing that would not necessarily sway me either way — however what it will do is make me respect that business [where the product or service is from] more. And it’s more likely I will buy from someone I respect.

A good practice if you plan on soliciting testimonials from your clients (whether you are giving them something for the testimonial or not) is to ask permission from them to pass along contact info to people who want to follow up on that testimonial. When you post testimonials online, make a note that you can provide contact info — so even if “full disclosure” is not needed because nothing was received in exchange for that testimonial, your prospects can opt to verify or follow up on those testimonials… giving them peace of mind on spending $$ on your stuff and showing them that you are the real deal honest business person. It’s a win-win.

So what are your thoughts on the new FTC rule? Do you think it pertains to all online entrepreneurs? Do you disagree with full disclosure? Let me know your thoughts – either leave me a comment or shoot me an email.

Until next time!

~Victoria Potts Keale is a newbie blogger, website designer, entrepreneur extraordinaire, mom, wife, daughter, sister… well, you get the gist. She lives in her hometown of St. Louis, MO in an old haunted farmhouse with her 2 kids and drummer hubby. She has 15 tattoos and wants more. She loves 80’s music. She thinks writing bios in the 3rd person is wacky. You should email her and tell her what else to put in her bio – victoria@lynnraedesigns.com – but don’t spam her, cause she’ll get angry.

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