For the first time in 29 years, the Federal Trade Commission is amending its guidelines to crack down on false reviews of products posted online, otherwise known as “astroturfing.”  This type of marketing includes false reviews, testimonials and comments about products in exchange for some form of payment to the reviewer. Microsoft is one of many companies believed to engage in astroturfing as a tool to promote its products.

The FTC now will require full disclosure of all payments to bloggers and consumer reviewers, including distribution of free products.  Thus, someone on a company’s payroll must disclose that information when posting an online review, comment, or testimonial.

The proposed guidelines have a broad reach, and may include blogs by an average consumer.  Bloggers will be required to disclose any free samples they may receive, and the FTC will require proof to support claims about a product.  Once the guidelines are in place, software companies will need to work with counsel to revise marketing strategies in order to ensure compliance or to fully disclose payments to reviewers.

The guidelines are expected to be effective by the end of the year.

Posted by Mariqus Alexander at 10/07/2009 01:40:10 PM