US FTC tells advertisers to disclose blog payments

WASHINGTON, Oct 5 (Reuters) - Companies and advertisers must let consumers know about any money or free products they give to bloggers as payment for their endorsement, the U.S. Federal Trade Commission said on Monday.

In issuing an update to guidelines for endorsements, which were last revised in 1980, the FTC pointedly told companies and advertisers who specialize in trying to convince bloggers to write about products that they had to be transparent about payments.

"Principally the requirements are about disclosure. Our concern is less with the individual bloggers (than) with the advertisers who are using the bloggers," said Richard Cleland, an FTC staff attorney.

"On the Internet, everything is whack-a-mole, and that's why our focus is not going to be on these individual bloggers," he said.

One advertising company that specializes in blogger ads is Izea, which lists among its clients companies like Air New Zealand Ltd (AIR.NZ), Blockbuster Inc (BBI.N) and KMart, a unit of Sears Holdings Corp (SHLD.O).

While Izea could not immediately be reached for comment, its web site's code of ethics spells out that bloggers are allowed to speak frankly about products, including ones they don't like, and requires disclosure. (Reporting by Diane Bartz, editing by Gerald E. McCormick)