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FTC endorsement rules were inevitable

By | October 6, 2009, 9:32am PDT

Summary: A brief history of journalistic ethics reveals why FTC action on endorsements was inevitable.

Susan Krashinksy interviewed me for the Globe and Mail’s coverage of the FTC endorsement rules. She quoted me as saying:

“If people are promoting products purely because they’re getting a freebie and it’s not being disclosed, that’s bad for consumers,” Mr. Koman said, and it also tarnishes bloggers’ claims of authenticity.

That’s a problem because of the sheer number of bloggers out there, some of whom are paragons of ethical behaviour and others … not so much.

“The rules are a good thing. … It’s hard to see how everybody in their PJs can self-regulate,” Mr. Koman said.

If I can expand on that bit about self-regulation. In my phone call with Krashinksy, I compared the situation with the evolution of the news industry. There was a time when newspapers were literally bought and paid for by corporations (the railroads). There was no advertising: revenue came from corporate payments. Later, papers switched to an advertising model but the editorial was essentially controlled by the railroads and mining companies. The age of yellow journalism ended corporate control and launched the era of sensationalistic, market-based editorial (give the people what they want) yet there was still massive corruption in the form of meals, drinks, cash, favors, women, etc.

The news industry reacted to all this by adopting a code of ethics. Newspapers enforced rules about accepting favors and free entertainment, established separation of church and state (news and advertising), embraced editorial standards that favored balanced presentation of differing viewpoints, etc. The industry was able to do this unilaterally because it was a private men’s club with relatively few members - and they were institutional members.

The blogosphere is everyone and it’s noninstitutional. How does “blogging” decide to self-regulate? Every attempt to get buy-in to standards and disclosure rules have utterly failed. Orgs like ZD can decide to publish disclosures but that has no impact on the real center of blogging, which is individuals “in their PJs.”

Thus, external regulation is necessary and was inevitable once PR firms and marketers discovered the power of influential bloggers.

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Disclosure

Richard Koman

http://government.zdnet.com/?page_id=3731

Biography

Richard Koman

Richard Koman is an attorney admitted to practice in California. As a technology writer since the mid-1980s, Richard Koman has documented the role of computing in the transformation of the graphic arts, the growth of the Web and the birth of the peer-to-peer phenomenon. He worked as a book and web editor for O'Reilly Media throughout the 1990s, editing several influential websites and numerous best-sellers. As a lawyer, as well as a tech writer, he brings a unique perspective to the blog's intersection of law, government and technology.
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RE: FTC endorsement rules were inevitable
RetiredCPA 7th Oct 2009
The only result of FTC "enforcement" will be the intrusion of U.S. govenment control on the internet (can you spell China?). This tempest in a teapot is the camel's nose under the tent of internet automomy. Self-regulation accrues to the reader, not the blogger.
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wishfull thinking
Linux Geek 6th Oct 2009
enforcement of this rules is virtually impossible since you can't spy on what the blogger in PJ gets in the mail.
The only way arround is to force the companies to reveal their special promo/giveaways to select people.
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Wishful Thinking
neverhome 6th Oct 2009
Concur. There is no way to enforce this without enforcement becoming intrusive.

Hey Richard - if you read this, what sort of balance do you believe must be struck between protecting consumers from shoddy products, and protecting all bloggers, vendors and ISP's from intrusive enforcement methods? This is bound to come up at some point.

Best
Alan
0 Votes
+ -
The only result of FTC "enforcement" will be the intrusion of U.S. govenment control on the internet (can you spell China?). This tempest in a teapot is the camel's nose under the tent of internet automomy. Self-regulation accrues to the reader, not the blogger.

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