FTC Keeping An Eye On Bloggers

If you decide to offer an incentive to bloggers to cover your product and don't want the FTC coming after you, think twice before you post the gift amount.

Ann Taylor, the clothing company, offered bloggers a reward between $50 and $500 dollars in gift cards for the best post about their Summer 2010 collection. The FTC argues that bloggers have to disclose they received payment from the company to cover its products - even if the amount is only $50. According to industry watchers, the FTC has intensified their efforts to crack down on bloggers who don't disclose that they are being compensated by the company whose products/services they write about.

Ann Taylor had to post signs at the event, create and publish a policy for bloggers covering its products. In turn, the FTC decided not to press charges against the company.