Krempasky.com

The blogosphere is all a-twitter with the news that the Federal Trade Commission has updated the guidance it gives to advertisers related to endorsement and testimonials. The best run down I’ve seen so far is Brian Solis’ at TechCrunch.

As a result of the evolving level of influence inherent in the social Web, and web in general, the notice incorporates several amendments to the FTC’s Guides Concerning the Use of Endorsements and Testimonials in advertising and blogging, which address endorsements by consumers, experts, organizations, and celebrities, as well as the disclosure of important connections between advertisers and endorsers. Fines for violating the new rule will run up to $11,000 per incident.

Ok, so pay-per-post is pretty well covered, and it should be. It also isn’t exactly groundbreaking that people willing to pay for coverage (and those ready and willing to accept) are the bottom of the social media barrel.

But the far more interesting discussions should explore the “material connections” between advertisers and endorsers. This is the gray area in which wise marketers will need to get very smart – very quickly.

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