This is probably going to change the way a few Chicago radio personalities go about their business. From this morning's Radio Online...The Federal Trade Commission (FTC) has issued new guidelines affecting endorsements on blogs, Facebook, Twitter and other new media, effective December 1. Essentially, if an air personality engages listeners through one of these new media channels, they will now be required to disclose any "material connections" (i.e. payments or freebies).
The rule, revised for the first time since 1980, carry fines up to $11,000 per violation. It covers any consideration received from companies whose products reviewed or promoted.
The FTC also issued new rules on testimonials, saying advertisers must now "clearly disclose" what kind of results consumers can typically expect. In addition, air personalities and celebrity endorsers may now be liable for false or unsubstantiated claims made during the endorsements."
That last bit is obviously directed a the weight loss and hair growth industries. They've been running rampant for years.
