Five Ways to Comply with the New FTC Guidelines for Bloggers

Last fall, the U.S. Federal Trade Commission (FTC) issued new guidelines that require bloggers to “disclose material connections” for product or service endorsements. In fact, according to The Public Relations Society of America (PRSA), “People who blog, tweet or use Facebook to post opinions about consumer products could be fined $11,000 for repeat violations of new federal disclosure rules.”

Warning Tape Wrapped Around Laptop - Photo courtesy of ©iStockphoto.com/DNY59, Image #1520756

Photo courtesy of ©iStockphoto.com/DNY59

I don’t know how serious the FTC will be in enforcing these guidelines. I have read some reports that indicate they will be primarily focused on advertisers who attempt to influence bloggers without requiring them to disclose that they were either paid or received free goods or services.

In an attempt to decipher the new FTC Guidelines, the PRSA says,

The FTC dubs them [bloggers] “endorsers” and makes endorsers liable, along with advertisers, for false or unsubstantiated claims or for failing to disclose material connections between the parties.”

What does this mean? It means that if you have a “material connection” with a third-party advertiser or sponsor, you must disclose it. Specifically,

Bloggers who receive cash or in-kind payment (including free products or services for review) are deemed endorsers and so must disclose material connections they share with the seller of the product or service.”

So how do we do this practically? A new Web site called Cmp.ly (as in “comply”) makes it simple for advertisers and bloggers to comply with the FTC guidelines. They have created a series of easy-to-use disclosures and codes that you can use in conjunction with your blog posts, tweets, and other social media interactions. They provide a standard list of six disclosures:

  1. No Material Connection
  2. Review Copy
  3. Free Sample
  4. Sponsored Post
  5. Employee/Shareholder Relationship
  6. Affiliate Marketing Links

They provide graphic “badges” that you can insert in conjunction with your posts. The FTC does not require this and personally, I find them intrusive. I want to comply with the law, but I don’t want an additional distraction or clutter.

Originally, I thought it would be less intrusive to just insert a note after, for example, every affiliate link. As you probably know, if you mention a book on your blog and use your Amazon affiliate code, then Amazon will pay you a small commission when someone clicks through and buys the product. This approach looked like this:

Screenshot of an Affiliate Link

However, after living with this for the past 30 days or so, I feel this is also cumbersome and intrusive—especially if you have numerous links within one post, like I do here.

Therefore, I have decided to include one blanket disclosure at the bottom of every blog post. Rather than using a badge, I am using a simple block of text. I am using a smaller font (though still readable) and a slightly lighter color. This approach looks like this:

Screenshot of Disclosure of Material Connection Example

You can scroll down to the bottom of this post to see how it looks “live.” I currently have the following six disclosure templates. I am inserting at least one at the end of each post.

  1. Disclosure 1: No Material Connection. This is the standard disclosure I use when I don’t have any embedded links or a relationship with any of he products or services I have mentioned:
    Disclosure of Material Connection: I have not received any compensation for writing this post. I have no material connection to the brands, products, or services that I have mentioned. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”
  2. Disclosure 2: Affiliate Links. This is the disclosure I use when I included an embedded affiliate link from Amazon or some other provider:
    Disclosure of Material Connection: Some of the links in the post above are “affiliate links.” This means if you click on the link and purchase the item, I will receive an affiliate commission. Regardless, I only recommend products or services I use personally and believe will add value to my readers. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”
  3. Disclosure 3: Review or Sample Copy. This is the disclosure I use when I am reviewing a book or other product that I have received from someone in the hope that I will review it:
    Disclosure of Material Connection: I received one or more of the products or services mentioned above for free in the hope that I would mention it on my blog. Regardless, I only recommend products or services I use personally and believe will be good for my readers. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”

    If you are a Thomas Nelson Book Review Blogger, you might want to use this disclaimer:

    Disclosure of Material Connection: I received this book free from Thomas Nelson Publishers as part of their Book Review Blogger program. I was not required to write a positive review. The opinions I have expressed are my own. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”
  4. Disclosure 4: Sponsored Post. This is the disclosure I use when someone pays me to write a post for a product, service, or conference. I turn down more of these posts than I accept, because I have to be genuinely excited about the product:
    Disclosure of Material Connection: This is a “sponsored post.” The company who sponsored it compensated me via a cash payment, gift, or something else of value to write it. Regardless, I only recommend products or services I use personally and believe will be good for my readers. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”
  5. Disclosure 5: Employee/Shareholder Relationship. This is the disclosure I use when I am writing about a book my company, Thomas Nelson, has published.
    Disclosure of Material Connection: I am the CEO of Thomas Nelson, the company that published this book. Regardless, I only recommend books that I have personally read and believe will be good for my readers. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”

Feel free to borrow this method or any of my disclosure copy. If you improve upon it, I’d love to hear about it in the comments below.

If you are using WordPress, you can also automate this whole process by using a plugin called Add Post Footer. Just put your default text in the plugin configuration page. I use Disclaimer 2 above for my default. Then you can then override this on a post-by-post basis, using a custom field. The plugin documentation explains how.

What are you doing to comply with the FTC guidelines?
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Please note: I reserve the right to delete comments that are snarky, offensive, or off-topic. If in doubt, read My Comments Policy.

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  • http://www.beststocktobuynow.com/ Best stock to buy

    Thanks for the direction and examples. As always you post very useful information. I will definitely use these disclosures if I ever get paid for endorsements.
    My recent post Buy Only Stocks That Pay Dividends

  • Chew

    Dear Michael,
    I have finally got some time and decided to write a review of It by Craig Groeschel which I received from you during your Book Notes review on this book. Thank you. It was a fantastic book – most of the wisdom there are common sense wisdom that Craig has put it in such a way that are so passionate, energetic and inspiring to read and apply.

    I was searching high and low for this blog post to look for guidelines to comply to US FTC regulation.
    Probably it would be a good idea if you could make this post sticky or pin it to your list of popular posts?

    • http://intensedebate.com/people/michaelhyatt Michael Hyatt

      I'll take a look at doing that. Did you attempt to use my search bar in the top right-hand side of the blog. I entered “FTC” and it came right up. Thanks.

      • Chew

        Yes, I finally thought of that..which is when I arrived at this post.

  • http://intensedebate.com/profiles/idlechameleon idlechameleon

    Thank you so much for posting the various verbiage in compliance with the FTC rules. I just became a Book Sneeze reviewer and just found out about the October 2009 ruling. This is a huge help to me. Thanks again.

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  • http://twitter.com/AprilMWilliams @AprilMWilliams

    Thanks. These are very helpful and perfect timing for me.

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  • kkcoolj

    Wonder what you reaction is to the *revised* guidelines that the FTC published about this subject…

  • Aaron s

    Thanks for posting this info. Your templates are helpful and the heads up is much needed.

    Aaron

  • lisacolondelay

    Very informative. Much thanks to you.

  • http://twitter.com/Rwagner731 Ruth Wagner

    Michael,

    I know its been 10 months since you write this but I thought you might enjoy the article on CNN Money an CMP.LY Dec 1, 2010.

    http://money.cnn.com/2010/12/01/technology/paid_blogger_disclosure/index.htm?source=yahoo_quote

    And, of course, my disclosure:
    http://www.cmp.ly/4/co2loq

    Ruth Wagner
    VP Corp Sales & Compliance
    CMP.LY
    Social Media Disclosure & Compliance
    ruth@cmp.ly

  • http://goinswriter.com/ Jeff Goins

    I’m beginning to dip my toe into affiliate marketing. This was helpful.

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  • Hilary Stevens

    I just started blogging a couple months ago and had no idea these regulations existed! This was extremely informative. Thanks for all the tips. 

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  • Anonymous

    Thanks for the head up Michael!

  • http://www.momonaspiritualjourney.com Sarah Lawrence Hinson

    Thank you for this post…just working out what to do about sponsored posts and this information was extremely most useful!

    Continuing the journey…

    Regards

    Sarah Lawrence Hinson
    A Mom On A Spiritual Journey!

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  • http://www.wbahealth.com/ Andy555

    Really
    gorgeous site structure and color method. Do you find yourself an artist by way
    of job? Your websites furthermore plenty really quick. You may have generated
    your own long-term reader

  • Andy

    How about youtube  Affiliate disclosure?
    Do i simply put a link is description?  http://cmp.ly/5
    Does anyone do this???
    Regards Twitter I use # ad in my tweets

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  • http://christopherbattles.net/ Christopher Battles

    Thank you Michael.
    I started to blog and just started including Amazon links in my last blog and I knew you would be the person with the proper information.  
    I like what you do with the default disclaimer.
    Right no I am doing (Amazon link or Affiliate link) after each thing, which breaks from the actual topic.
    I am using WordPress.com so I need to find something that will work like that add on you suggested for WP.org.
    Thank you again sir.

    K, bye

    • http://michaelhyatt.com Michael Hyatt

      I am not aware of a way to do this with WordPress.com. If you find something, please let me know. Thanks.

      • http://christopherbattles.net/ Christopher Battles

        I just looked around and found zero.
        Thinking about putting it my about section for now and maybe a link to that in each post for now.  I shall see.
        Thank you very much for the response and if I find something I will let you know.

        K, bye

        • http://michaelhyatt.com Michael Hyatt

          That’s what I would advise. I really think that should be sufficient.

  • http://michaelhyatt.com/ Michael Hyatt

    Thanks, Jeremy. I have just buffered a tweet to this. Thanks so much for doing it. It looks awesome!

  • Sarah Parker

    Thanks so much for this article and thank you for sharing your templates : )

  • http://joshuawagneronline.com/ Josh Wagner

    I just released a WordPress plugin to add these disclosures to a post or page. Thank you for making your disclosure copy available!

    Link to the plugin: http://wordpress.org/extend/plugins/disclosure-picker/

    • http://michaelhyatt.com/ Michael Hyatt

      Thanks for doing that. Josh. Excellent.

  • Morris Sue

    Thank you for this post. I review books and EVERYONE, unless they are under age 10 or live in outer space knows book reviewers get a copy either a physical or a digital.

    But what about the books that are “received” as a timed digital? The blogger gets nothing of lasting value as the book no longer loads after a set time, usually 60 days.

  • http://dedivahdeals.com/ Antionette Blake

    Really?

  • http://twitter.com/MEANetworkAds MEANetwork Ads

    Thank you very much, Michael! This helped clear up some questions I had while re-purposing some content!

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  • http://tathan.blogspot.gr/ Takis Athanassiou

    Dear Mike, your article was very helpful and as usual very informative. Thank you a lot.

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  • http://twitter.com/Misty_Hamel Misty Hamel

    Thanks for sharing! I am borrowing your disclosure for my sponsored posts!!!

  • GetClued In

    Thanks so much for this information. I rarely do sponsored posts but this is so good and I put it in my general disclaimer as well and gave you credit. THANK YOU!!!

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  • Carmen DeSousa

    Thank you. I used your affiliate link disclosure and added to the bottom of both of my websites, since that’s exactly what I do–promote books I download for myself based on their current reviews. I rarely receive free books, unless if they’re from a friend or via an Amazon “free” link, and I never, ever charge to promote or review. :)