The FTC, PayPerPost and New Disclosure Terms

On December 11, 2006, the FTC issued a staff opinion (PDF) stating that word of mouth marketers need to disclose their affiliation with advertisers to their customers. Many people speculated on the effect it would have on companies like Pay Per Post, affiliate marketing, social marketing, and blogging in general.

“Word-of-mouth marketing can take any form of peer-to-peer communication, such as a post on a Web blog, a MySpace.com page for a movie character, or the comments of a stranger on a bus.”

FTC Moves to Unmask Word-of-Mouth Marketing - Washington Post

Considering the last page of the opinion, it’s probably safe to assume that the FTC will go after the egregious cases.

“In conclusion, the FTC staff will determine on a case-by-case basis whether to recommend law enforcement actions to the Commission. We encourage you and other members of the public to submit information about any such instances, so that we can consider this information and recommend that the Commission take law enforcement action when appropriate. In addition, the Commission will continue to evaluate these issues.”

FTC Staff Opinion (PDF)

Companies or individuals blatantly misleading people for the sake of the almighty dollar will probably find themselves in hot water, however, the honest bloggers and affiliates should have little to worry about.

PayPerPost, however, isn’t taking any chances. PayPerPost, a paid to blog service, has been the topic of much heated debate, because it didn’t require bloggers to disclose sponsored blog entries. That’s changed.

“PayPerPost’s new Terms of Service require participating content creators to fully disclose site wide with a prominent Disclosure Policy or on a per post basis. “

PayPerPost Does Something Right - TechCrunch

Some bloggers, undoubtedly, will not appreciate this new requirement, but ultimately it’s a good move for PayPerPost and the bloggers. By disclosing any affiliations, it lessons the possibility of being charged with a crime by the FTC. However, they still can’t blatantly mislead consumers - even if they have a disclaimer and disclosure.

Tags: pay per post, payperpost, paid blogging, blog disclosure, ftc, womm, word of mouth marketing, social marketing, blog marketing, affiliate marketing