FTC Guidance On How To Incentivize Bloggers

Surveys confirm what most retailers already know –- traditional advertising (e.g., television, direct mail, and print) are on the decline, and new media (e.g., blogs and viral marketing) are on the rise. One of the advantages of new media is that it permits others to help advertise a retailer's products. This is also one of its greatest challenges. Retailers often struggle with the loss of control that they have over others, such as bloggers, when they talk about the retailer's products.

Lack of control can be particularly problematic in light of the Federal Trade Commission's ("FTC") rules, regulations, and guidelines. For example, the FTC takes the position that if a company provides bloggers with a gift, such as a free product or a gift certificate, that fact must be disclosed by the blogger to consumers. If the blogger fails to disclose that they have a "material connection" to the company the company could be liable.