Cart (0)
VIDEOBlogging for Bucks: FTC to Crack Down on Pay-to-Play Posting
By
Scott Reeves Apr 23, 2009 3:25 pm
False advertising may get Internet hacks censored.
 |
|
Shocking.
The bloggers are carrying on in the fine tradition of newspaper sections devoted to autos, real estate, restaurants, travel, fashion, and even higher education. When was the last time you read a hard-hitting story about car safety in the Wheels section of your local poopsheet? Does anyone expect the real-estate section to carry a story questioning the outrageous 6% commission many real-estate agents pocket for selling a house or a condo?
Everyone, except the unconscious or the willfully blind, understands the inherent conflict of interest and sizes up the stories accordingly.
The Federal Trade Commission -- which keeps a wary eye out for false advertising -- is considering whether it should police bloggers. This is a terrible idea and needs to be squashed immediately.
It seems that everyone and his uncle -- and even the United Nations -- wants to get its hands around the information flowing on the Internet, and for obvious reasons. If we want to preserve the free flow of information in a free society, we need to keep bureaucratic thumbs out of the Internet, even at the risk of a few cheap and misleading posts.
Most readers can figure matters out for themselves. Honest, Washington, we’re only citizens, but we’re only half as dumb as we look.
The Internet can govern itself, and the worst offenders will be outed by those who write straight-ahead posts. Disclosure, as they love to say in Washington (even while thwarting it), is the best disinfectant.
Some entrepreneurs understand that credibility is the key to their success. Ted Murphy hopes to make money by selling blog posts. He requires his bloggers to include a silver icon next to promos that read, “Sponsored Post. 100% Real Opinion,” the Wall Street Journal reports.
A survey of 250 senior marketers by Manning Selvage & Lee and PRWeek magazine found that 20% had purchased online ads in exchange for coverage, and 8% had provided gifts to bloggers.
The Journal reports that Jessica Smith, author of JessicaKnows.com, has made pitches for Wal-Mart (WMT), Ford (F) and video game-maker Electronic Arts (ERTS).
“After a favorable review, Ford gave Ms. Smith a Flex crossover vehicle for a year with paid insurance,” the Journal reports.
“…Ms. Smith is one of a dozen bloggers recently flown to Santa Barbara by Electronic Arts to work out with Oprah Winfrey’s personal trainer. The bloggers, who were put up at the Four Seasons hotel, are receiving makeovers as they write about taking a 30-day challenge on an upcoming fitness video program for the Nintendo Wii.”
Some public relations pros refer to such bloggers as “evangelists.” At the bottom of her page, Smith tells readers that she accepts compensation for blog posts - and that’s more than any newspaper has said about the fluffy stories that appear in special advertising sections.
Does anyone think that major companies would put on the dog for a bunch of little old bloggers out of the goodness of their gooey corporate hearts?
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
