The FTC has announced new regulations that would require bloggers to disclose monetary and material compensation provided by companies seeking exposure in the blogosphere
More commonly known as Payola, pay for play, the FTC wants bloggers to be upfront with readers about the source of the merchandise that they endorse or review favorably. In a time when advertising budgets are rapidly shrinking, and consumers are looking to man-on-the-street blogs versus Consumer's Digest and larger publications for the final word in spending, blogs have become a cheap alternative. Rather than shelling out big bucks for ad space in mags, in their merciful benevolence companies send out freebies to needy and deserving bloggers, who in turn might-or-might-not praise the merchandise. Now where is the harm in that?!?!
I like to think of it as the Corporation/Editorial/Consumer Circle of Life.....like in The Lion King.
The bugs eat the grass, the animals eat the bugs, the animals then eat each other, and we eat the animals. SEE?!?! One hand feeds the other. No body moves, No body gets hurt.
THE FEDERAL TRADE COMMISSION = HATERSCuz truthfully they just wanna know how much merch is being trafficked so that they can tax it.
All the government ever wants to do is take their cut off the top and let the populace share the crumbs. Biggie said it best "Damn, Why the Wanna Stick Me for My Paper?"
Source Business Week