The Federal Trade Commission requires consumers, experts, organizations, and celebrities to disclose any compensation they are receiving in exchange for endorsements.
Popular bloggers soon learn that lots of people would like to access their audience.
As a site grows, partnership offers from other sites and companies that would like to receive an endorsement start appearing in the author's inbox.
These vendors could purchase advertising on the site. But what they really want is a personal thumbs up recommendation from the writer that has earned the reader's trust. They want the credibility that comes with a word of mouth referral.
The Federal Trade Commission has entered this arena, and requires bloggers and other celebrities to disclose any compensation they are receiving in return for their endorsement.
The FTC states:
"Bloggers who make an endorsement must disclose the material connections they share with the seller of the product or service."
They go on to say:
"And a paid endorsement - like any other advertisement - is deceptive if it makes false or misleading claims."
So, it's Ok to get paid to endorse a product on a blog, so long as our statements about the product are accurate, and we honestly disclose that we are being paid for our recommendation.
Further reading:
FTC Publishes Final Guides Governing Endorsements, Testimonials Now in Blogs, Product Placement
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