FTC Makes New Disclosure Law For Online Publications

December 21, 2006 – 11:40 am

If you haven’t already heard, the Federal Trade Commision (FTC) recently made changes that affects online publishers. From now on all sponsored and paid advertising on a blog or other type of website must clearly be disclosed so consumers aren’t mislead thinking it’s an actual endorsement for a product or service.

The FTC issued the following guidelines for making proper disclosure on a website:

Place disclosures near, and when possible, on the same screen as the triggering claim.

Use text or visual cues to encourage consumers to scroll down a Web page when it is necessary to view a disclosure.

When using hyperlinks to lead to disclosures,
* Make the link obvious;
* Label the hyperlink appropriately to convey the importance, nature and relevance of the information it leads to;
* Use hyperlink styles consistently so that consumers know when a link is available;
* Place the hyperlink near relevant information and make it noticeable;
* Take consumers directly to the disclosure on the click-through page;
* Assess the effectiveness of the hyperlink by monitoring click-through rates and make changes accordingly.

Recognize and respond to any technological limitations or unique characteristics of high tech methods of making disclosures, such as frames or pop-ups.

Display disclosures prior to purchase, but recognize that placement limited only to the order page may not always work.

Creatively incorporate disclosures in banner ads or disclose them clearly and conspicuously on the page the banner ad links to.

Prominently display disclosures so they are noticeable to consumers, and evaluate the size, color and graphic treatment of the disclosure in relation to other parts of the Web page.

Review the entire ad to ensure that other elements—text, graphics, hyperlinks or sound—do not distract consumers’ attention from the disclosure.

Repeat disclosures, as needed, on lengthy Web sites and in connection with repeated claims.

Use audio disclosures when making audio claims, and present them in a volume and cadence so that consumers can hear and understand them.

Display visual disclosures for a duration sufficient for consumers to notice, read and understand them.

Use clear language and syntax so that consumers understand the disclosures.

This is just a small part of the FTC’s changes in disclosure laws. To read the full text of changes that affect disclosure, please visit the FTC’s official webpage.

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FTC Makes New Disclosure Law For Online Publications

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