This week's behind the scenes is about the Federal Trade Commission's regulations on advertising, testimonials, and how it affects Second Life bloggers. Many of us do not profit at all from our blogs; as a hobbyist, I am completely non-profit. However, I do have sponsors and I do accept and request review copies for my posts, and this is where the gray area of Second Life meets real life currency and advertising laws.
We are in an age where things can go viral just in a few hours or overnight -- something you posted online before you went to bed can get a million views within just a couple hours. If you post your blogs on Facebook, Reddit, Twitter, Youtube, or anywhere else, it can go viral and eventually grab the attention of the big FTC and Government. Yes, the NSA and big brother is watching. *Insert shifty eyes here* Make sure you're in compliance with regulations or be ready to be bit in the ass!
Now, you can take my word for this, or you can go on and read it for yourself [here]. The .pdf file is called: FEDERAL TRADE COMMISSION 16 CFR Part 255 Guides Concerning the Use of Endorsements and Testimonials in Advertising
If you'd like to read more, click [here].
Hair - [geek.] Leia's Return Pak -Monos-
Glasses - 2PM. Bon bon glasses / black
Pencil - [MAGIC NOOK] Study Hard!
Dress - Rachel Swallows Creations - Prim & Proper
Stockings - :FY: Hellion Stockings (darks)
Shoes - {ZOZ}- Angel Heels Fatpack (Slinks High)
Pose - :Embody: F Heidi 5
ChalkBoard - Loudwater Designs - Chalk board 1.2 ($49L)
Second Life is based out of California in the United States. Many of their laws and tax regulations follow what is needed in real life because of one simple fact: anything sold in Second Life has a real life cash value. Designers can trade their linden currency for real life money and use it to pay bills. That is why they are considered a business -- they are running a business through a virtual world and profiting in real life. Their items have a real life cash value and thus are under the same regulations real life would have.
Again, as a blogger, I do not profit at all -- I spend just as much as I take in with poses, accessories, hairs, and more. I also have to pay for my Photobucket and Flickr bandwith to host on my website; and luckily enough, I have a personal friend who is sponsoring my domain name. I'm rather open about this -- I disclose my sponsors and gifts because I have to. Sure, it'd be nice to look like Misses Money Bags and pretend I purchased everything I've received, and it probably would help sales revenue stemming from me advertising the look, but it is illegal to do so, and plus, I've never been deceptive to my readers.
And so, with this introduction, I will tell you about the Federal Trade Commission's regulations in a summarized fashion and how it will affect you as a blogger. Blogging is a form of advertising the products, and thus the rules apply here just as it would affect a newspaper or any other advertising company.
255.0 - Purpose and Definitions
a) "Practices inconsistent with these Guides may result in corrective action by the Commission under Section 5 if, after investigation, the Commission has reason to believe that the practices fall within the scope of conduct declared unlawful by the statute."
Explaination: This means if you do not follow the statues outlined in the regulations, you can be declared unlawful and thus be shut down or face legal action against you.
b) "...an endorsement means any advertising message (including verbal statements, demonstrations, or depictions of the name, signature, likeness or other identifying personal characteristics of an individual or the name or seal of an organization) that consumers are likely to believe reflects the opinions, beliefs, findings, or experiences of a party other than the sponsoring advertiser, even if the views expressed by that party are identical to those of the sponsoring advertiser"
Explanation: If you're telling your readers to participate in any event or buy any item, you are giving an opinion which reflects on the item you are discussing. This could be seen as speaking for the creator of the item or the host of the event by consumers. You are thus responsible for the outcome of that opinion.
d) "For purposes of this part, the term product includes any product, service, company or industry"
Explanation: So yes! Their definition affects us as Second Life bloggers!
e) "...an expert is an individual, group, or institution possessing, as a result of experience, study, or training, knowledge of a particular subject, which knowledge is superior to what ordinary individuals generally acquire."
Explanation: As a blogger, you're seen as an expert on your field of study even in Second Life. Consumers flock to your blog for advice on what they should buy or wear.
255.1 - General Considerations
a) "Endorsements must reflect the honest opinions, findings, beliefs, or experience of the endorser. Furthermore, an endorsement may not convey any express or implied representation that would be deceptive if made directly by the advertiser"
Explanation: If you endorse or support a product, it needs to be your own opinion not that of the person who created or gave you the product. If you take commentary from the creator, you need to say it is from the creator and not you. (Besides, if you do, it is under plagiarism guidelines anyway if you do not credit your quotes.)
b) "The endorsement message need not be phrased in the exact words of the endorser, unless the advertisement affirmatively so represents"
Explanation: You don't have to quote the sponsor directly unless it takes away from the truth of your advertisement. You can paraphrase.
c) "When the advertisement represents that the endorser uses the endorsed product, the endorser must have been a bona fide user of it at the time the endorsement was given"
Explanation: If you didn't really use it, don't give it a thumbs up! Then again, us fashion bloggers wear it in our pictures, so... Yeah this rule applies but is already followed anyway! LOL!
d) "Advertisers are subject to liability for false or unsubstantiated statements made through endorsements, or for failing to disclose material connections between themselves and their endorsers [see § 255.5]. Endorsers also may be liable for statements made in the course of their endorsements."
Explanation: You are responsible for your actions if you make false or unsubstantiated statements made through your blog. If you lied, well, consider yourself screwed. You're liable for the damages that it made as well as any slander or libel charges in a court of law. Yep, so hey, you drama whores out there, we can crack down on you through the FTC! So shut yah traps. If you don't like me for telling the truth, then don't tell me or my friends your lies. Seriously, ain't nobody got time for that.
§ 255.2 Consumer Endorsements
a) "An advertisement employing endorsements by one or more consumers about the performance of an advertised product or service will be interpreted as representing that the product or service is effective for the purpose depicted in the advertisement"
Explanation: If you give a review because your sponsor asked you too, you are seen as representing them and their service/products! Even if you're consuming it too, you're still an employee.
b) "An advertisement containing an endorsement relating the experience of one or more consumers on a central or key attribute of the product or service also will likely be interpreted as representing that the endorser’s experience is representative of what consumers will generally achieve with the advertised product or service in actual, albeit variable, conditions of use. Therefore, an advertiser should possess and rely upon adequate substantiation for this representation"
Explanation: If you explain what you achieved, make sure you tell them if that is the usual result or just you got lucky! Basically, if you got it because of your status as a blogger, disclose that to your readers, lest they think they will get the same results too!
255.5 Disclosure of Material Connections
"When there exists a connection between the endorser and the seller of the advertised product that might materially affect the weight or credibility of the endorsement (i.e., the connection is not reasonably expected by the audience), such connection must be fully disclosed"
Explanation: If you have a sponsor, you have to disclose it! If you received a review copy, you have to disclose it! If you received a gift, you -have- to disclose it! Why? Because your gift could affect your credibility. You're getting paid in a gift item for giving your opinion - people have a right to see if you are biased or not because of your relationship to them. Disclose it to your readers. Be honest.
How do I comply?
Well, for one, you can provide a sponsor's page. List all your sponsors with an icon and landmark connected to them like I do on my sponsor page. I get review copies because of my endorsement of them and I also make connections through some of the groups I moderate. I am liable for listing all of them and I do.
Second, you can do such as StrawberrySingh does and place an asterisk* next to each item you receive as a gift or review copy! She explains it in her own review policy.
Third, be completely honest! Honesty is the best policy. Don't deceive your readers for any reason. There's just no reason for it -- you're a blogger, and people rely on your information. It's perfectly fine to protect your readers from drama behind the scenes of your blog, but if it affects your endorsement or review of the item, you need to disclose it no matter what.
Forth, under your review policy, which you also should disclose, you can add a disclaimer from DisclosurePolicy.org [here]. Just go through the questions and answer them. Then copy paste it into your own blog. Make sure you credit them to avoid plagiarism!
If you do all the above, you should be fine. Yeah, sure, we're all hobbyists -- but in an age where everything can go viral within a few hours of posting it, you need to be careful. Fame isn't just achieved because you tried to achieve it -- sometimes it just happens and you have to deal with it. It's good to be safe. It's good to be careful. Now that you know these guidelines on even Second Life bloggers exist, you can now comply and follow them.
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