New FTC Rules Will Have Serious Impact on Blogs

Reviewed the Federal Trade Commission’s new rules regulating blog content, and unfortunately, they look to be far worse than I originally imagined. Jeff Jarvis points out some of the problems with the new rules here, but let me go into how they will affect gun bloggers specifically, since more than a few of us have gotten free stuff from companies, and not always because we were bloggers, or because we were given something with an expectation we’d write about it.  But it turns out that largely doesn’t matter.

As Sigivald initially thought, most of the reports indicate that only bloggers who are paid by companies or marketing agents are at risk of prosecution by the FTC. However, the FTC is clear that payment need not be in the form of cash, and even merely providing a review copy of a product itself may be considered compensation. But, just to keep things interesting, review copies may not always be compensation. The bureaucrats admit to being intentionally vague because they may or may not consider the value of the product as evidence against bloggers in the decision to prosecute.

For example, a blogger could receive merchandise from a marketer with a request to review it, but with no compensation paid other than the value of the product itself. In this situation, whether or not any positive statement the blogger posts would be deemed an “endorsement” within the meaning of the Guides would depend on, among other things, the value of that product, and on whether the blogger routinely receives such requests.

Confused yet? Well, that depends on how often you get offers to review. There’s no minimum standard for which you must begin reporting such “compensation.” And the mere presence of “offers” may possibly be enough to trigger an investigation even if you turn most review offers down. If that’s not bad enough, there’s liability on the part of companies who choose to work with blogs as well.

Marketers or sponsors would be obliged to monitor all the content of the blogs they have ever worked with. If a blogger gets a key fact or claim about the product wrong, marketer or sponsor would be liable.

The Commission recognizes that because the advertiser does not disseminate the endorsements made using these new consumer-generated media, it does not have complete control over the contents of those statements. Nonetheless, if the advertiser initiated the process that led to these endorsements being made – e.g., by providing products to well-known bloggers or to endorsers enrolled in word of mouth marketing programs – it potentially is liable for misleading statements made by those consumers.

Imposing liability in these circumstances hinges on the determination that the advertiser chose to sponsor the consumer-generated content such that it has established an endorser-sponsor relationship. It is foreseeable that an endorser may exaggerate the benefits of a free product or fail to disclose a material relationship where one exists. In employing this means of marketing, the advertiser has assumed the risk that an endorser may fail to disclose a material connection or misrepresent a product, and the potential liability that accompanies that risk. The Commission, however, in the exercise of its prosecutorial discretion, would consider the advertiser’s efforts to advise these endorsers of their responsibilities and to monitor their online behavior in determining what action, if any, would be warranted.

Bloggers and sponsors could all be facing potential fines of up to 11,000 for a failure to disclose. The practical impact is that a wise lawyer would advise companies to avoid pitching anything to bloggers unless a blogger can bring a profit greater than $11,000 to the company. Very few of us are capable of doing that.

And the liability does not just exist for mistakes in product claims, but also for disclosure itself. If S&W wants to give Caleb another hat after December 1, and he posts about it or any S&W product again in a way that may be interpreted in perceived as positive, they are liable if he forgets to add a note that they are compensating him in some way. It doesn’t matter if they didn’t even email him about that specific product, it’s a potential violation. It’s worth noting that traditional media won’t have to live up to the same standards as blogs:

The Commission acknowledges that bloggers may be subject to different disclosure requirements than reviewers in traditional media. In general, under usual circumstances, the Commission does not consider reviews published in traditional media (i.e., where a newspaper, magazine, or television or radio station with independent editorial responsibility assigns an employee to review various products or services as part of his or her official duties, and then publishes those reviews) to be sponsored advertising messages. Accordingly, such reviews are not “endorsements” within the meaning of the Guides. Under these circumstances, the Commission believes, knowing whether the media entity that published the review paid for the item in question would not affect the weight consumers give to the reviewer’s statements. Of course, this view could be different if the reviewer were receiving a benefit directly from the manufacturer (or its agent). In contrast, if a blogger’s statement on his personal blog or elsewhere (e.g., the site of an online retailer of electronic products) qualifies as an “endorsement” – i.e., as a sponsored message – due to the blogger’s relationship with the advertiser or the value of the merchandise he has received and has been asked to review by that advertiser, knowing these facts might affect the weight consumers give to his review.

The free speech implications of this are serious. but I think there’s even some free press implications. Why should bloggers not enjoy the same rights the regular media does? Does it matter that my press is Apache and PHP, rather than some huge, expensive offset printer? I don’t think so.

Because the rules are not clear, a blogger or marketer can have no idea whether his writing about a particular product will trigger an investigation, or worse, bring about civil penalties. The safe move will be for bloggers to not mention products or companies in a positive light, and for advertisers to stay away from blogs altogether. This will have a chilling effect on speech and free expression, so it’s difficult for me to believe that the FTC’s new guidelines are not a violation of the First Amendment. Hopefully the courts will agree.

Pennsylvania Voters Back Preemption

Go to page fifteen of this new poll:

As you might know, there is a chance that the Pennsylvania Supreme Court may soon hear a case regarding gun and firearm laws here in Pennsylvania. The current law came out of a case 13 years ago called Ortiz v. Commonwealth. There, the Supreme Court of Pennsylvania ruled that the state legislature is the only body that has the power to establish gun laws in the state and that municipalities cannot pass their own gun law ordinances.

Do you (ROTATED) agree or disagree with the Supreme Court of Pennsylvania’s ruling that the state legislature should be the only body of government to establish gun laws here in Pennsylvania? (PROBED: And would that be STRONGLY or SOMEWHAT AGREE/DISAGREE?)

56% TOTAL AGREE (NET)
39% STRONGLY AGREE
17% SOMEWHAT AGREE
38% TOTAL DISAGREE (NET)
11 % SOMEWHAT DISAGREE
27% STRONGLY DISAGREE

Also, the spread between gun owning and non-gun owning households was only five percent. So it would seem preemption has broad support among a large number of Pennsylvanians.

Democratic Nominee Onorato Runs Left

Describing rumors of his pro-gun positions as “mischaracterizations,” when Allegheny County Executive Dan Onorato declared his candidacy for Governor in Philly this morning, he called for non-specific “common sense” gun control.

I asked a reporter on the scene what exactly a “common sense” gun law was, but he didn’t have any specifics other than a vague reference by Onorato to child locks. However, he did say he would get back to Onorato on it.

It seems rather odd that Onorato is seemingly running left on gun issues, when he said later that these issues won’t really matter in the 2010 election, it will be more about the economy. If he does, it will be at his own political peril. Of course, he might already know that given this tweet from John Micek:

Onorato event in HBG is in front of Colonial-Era Graveyard. Put out an APB to Metaphor Police.

UPDATE: He also specifically mentioned lost-and-stolen, a law that would turn the legal system upside down for gun owners. We would have to prove our innocence rather than law enforcement proving that we did anything wrong.

Got to Get Down to MAIGTown

The Mayor of Darby, PA, the town I have the unfortunate requirement to name as my place of birth on every 4473, is a member of MAIG. One of the Darby borough council members is under investigation for straw purchasing. If Mayor Helen Thomas is really interested in cracking down on illegal guns, maybe she needed to start with her own Borough Council.

Reloading Presses

TD has a new Lyman reloading press, and offers a review of the equipment. No doubt people will tell him he’s nuts for not just getting a Dillon. I started off with a Lee kit, which worked decently enough. A reader was kind enough to send a Lee progressive press, which I’ve used to reload .44 Magnum. Lee reloading equipment works, but it definitely has its design flaws, especially their progressive presses which have a bit of a Rube Goldberg feel to them, and tend to have minor hiccups which interfere with the reloading process.

Lately I’m pondering getting a rock tumbler so I can handle very significant amounts of brass, and something that will be a little quieter than a vibratory tumbler. Probably not something I’m going to get until I start getting serious about reloading again. But I have been collecting a lot of used brass. Limiting factor for me has been powder, primer, and time.

I Often Wonder How the Left Justifies This

Certainly they are fans of government regulations, but that has consequences. Consequences like this. It’s very difficult, actually, for ordinary people to avoid committing federal crimes. How do progressives justify a regulatory state with the power to destroy lives over something so trivial? How do they justify strict liability for crimes that can put people away for such a long time?

Is This Election Time Posturing?

Both DA candidates in Philadelphia say they will have no tolerance for illegal guns.

“My number one priority as a father of three daughters and a lifelong resident of Philadelphia is to make Philadelphians feel safer. And we are going to do that by prioritizing illegal guns. We are going to be going after the people that are using guns illegally. We are going to be going after the people that are selling guns illegally.”

I have no real beef with this position. But will they follow through if elected? If Bloomberg’s group were lobbying to put illegal gun traffickers and people illegally using guns in jail, I would have no problem with the group. But that’s not what they are doing.

High Public Approval for Hunting

80% of Americans approve of the practice. That’s not great news for Wayne Pacelle, but we know from the gun fight, that a lot of Americans support the Second Amendment, but when you start arguing specifics, you lose support. But we’ve done very well with broad arguments, and hunters can too. The danger I see is that hunters have not yet accepted the “no one gets thrown off the lifeboat” philosophy that most in the shooting community have come to understand. Look at the large numbers of people in rural counties with strong hunting traditions that voted for a ban on dove hunting in Michigan?