Undisclosed Sponsored Posts: Is There A Loophole?

July 15th, 2010 | 14 comments


Undisclosed Sponsor Post

This past Tuesday, I posted an article about Tainted Travel Bloggers. A representative from Adbeans.com reached out to me and asked if I could post a sponsor post written not by other travel bloggers but by them for a payment of X amount. The representative also sent me a few examples of travel bloggers whom she has worked with before.

The first thing I noticed was that neither one of the travel bloggers explicitly stated anywhere in their blog post that it was a sponsored post and that they received monetary compensation for it. (I’m assuming that they did because that was what I was offered as well.) The second thing I thought was, “Did the blogger even edit this post or did they just post it exactly as it was sent to them?”

Many bloggers in the travel community expressed their thoughts and concerns about this issue. You might want to read my previous post before continuing because a few of my readers made some comments worth addressing.

Cornelius Aesop, from Monkey Brewster, raised some interesting questions.

Is AdBeans reputable, as in did they really pay these bloggers for this post or did they just gather a few posts from popular ‘insert genre here’ blogs hoping to encourage you to buy into their program with a mentality of – if they did it I should too.

If so, is the amount enough that it should be noteworthy that they were indeed paid for that post, or should that even matter?

I hadn’t thought of the idea that Adbeans.com could just be pulling out blog posts as an example without having actually worked with the travel blogger. But somehow I doubt that’s what they did. All the link examples they provided me were formatted the same way – in a list with a lot of pictures and hyperlinks.

Whether is $5 or $50, it shouldn’t matter how much bloggers are being offered in exchange for posting a sponsored post. I firmly believe that, as a blogger, the compensation you’ve received whether it’s money or a book for review should always be revealed. You don’t tell have to say exactly how much you received for the blog post but just saying that you received monetary compensation is good enough.

Keith Jenkins, from Velvet Escape, informed me of something I apparently overlooked about the FTC guidelines.

I’m not against sponsored posts but I do agree that a disclosure should be included. That said, FTC rules only apply to US-based blogs or if the company that has provided compensation is US-based so, ethics aside, there’s nothing wrong with not providing a disclosure if the blogger/client aren’t based in the US. Oh well…

Adbeans.com is a London based company but as travel bloggers, many of us can be blogging from the States one week, Africa the next and Asia the week after that. What would be considered as a US-based blog? If FTC rules only apply to US based blogs, then all travel bloggers can use this loophole to choose not to inform their readers when they have sponsored content, right?

Melissa Stanford, from The Innocent Abroad, clarified it a little for me.

It’s only required to put a disclosure policy if you’re American. If you are living abroad or your hosting is not in America, the FTC has no authority to enforce the law. However, I agree people should at least be honest. Most people are smart enough to know bloggers get paid to advertise; transparency about the subject means you trust your audience. Hiding your payment means you are afraid of them. That’s my take anyway.

If anyone is interested, here is the FTC guidelines.

After discovering what these travel bloggers have done, I cringe a little when I see their tweets. It’s not that I’m disgusted because I’m sure they are good people. It’s more of a damn-why-did-you-have-to-do-that type of feeling.

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  • http://www.MonkeyBrewster.com/ Cornelius Aesop

    Great follow up and I'm glad I made the list – yay!

    I agree with the theme you seem to be running with here, legality aside it is more of an ethical thing. I can see why it bothered you as well since those who are in the 'travel blog' niche (I think I'm part of that group, albeit low on the rungs) are a tight nit community so an element of trust is given. At the same time, should we disclose our link exchanges when we highlight a blog who has sent us an email requesting to be added to our links page/blog roll in exchange for theirs? It is not exactly the same but I like to play monkey's advocate ;-)

  • http://www.501places.com Andy Jarosz

    Great post, and agree with you (and with Cornelius) that the subject is not less relevant to those of us outside the US – the code of ethics is universal. I've been approached on a regular basis with offers of sponsored posts, and have no interest in publishing them, but like you I have tracked back to see where they have posted. Some are better than others, but in all cases it is surely a breech of trust if a blogger does feature a post with links for which he/she is paid and fails to declare it?
    Cornelius, nice question regarding the blogroll/link exchange. Best solution? Take a look at the site and add the link if you consider it one you want to feature, and don't add it if you don't like it. Make your decision to have them in your list unconditional on their reciprocation and based purely on your own criteria for inclusion.

  • http://www.the-working-traveller.com/ Shane @ The Working Traveller

    Though the non disclosure issue is a little disappointing it is perhaps not too surprising. A number of blogs in this field write about the business of blogging alongside the travel stories and try to play a role in encouraging other travellers to subsidize their own journey by starting and 'monetizing' (hate that word) their own blogs.

    It's a shame that these bloggers have sullied their reputations a little in your eyes because by disclosing they could have had their cake and ate it. A little thought could have led to that holy trinity of cash, content and comments by following up on any criticism with a short piece about funding travels with sponsored posts.

    Overall Monica, this is an interesting post which I still think has legs. Have you contacted any of the bloggers themselves? Without revealing names I'd be interested to hear their responses to 'adbeansgate'

  • http://andyhayes.com Andy Hayes

    Great post and followup! As my monkey pal has noted, the FTC ruling only applies to the US. As my site is hosted in Canada and my corporation based in the UK, I am exempt. But my editorial policy is FTC compliant. Why? Because it's the right thing to do. People should know when I got something for free and when I was invited to a specific, not-normally-public thing.

    Though, as monkey has mentioned, I do feel that links are different than content… and given that selling link space is technically against google's rules (even though they can almost always tell), it is the publishers right not to make that any more obvious than it already is =)

    I'm curious – has Adbeans been in touch since your two posts? Am curious on their view since we only really have one side of the story.

  • monica530

    Thanks Andy! Adbeans hasn't been in touch with me since I've posted about it. Now that you bring it up, I would be interested in hearing why they approached me the way they did as well. And yes, you're right – it's been a one-sided story so far. I'm pretty open to hearing their thoughts.

    P.S. I think it's a great thing you question me. People should do that more often and not take things for face value all the time. :)

  • monica530

    Hi Shane. Thanks for taking the time to share your thoughts. I really appreciate it. I haven't contact the bloggers or Adbeans.com. I don't want to ruin the bloggers reputation and I certainly don't want to cause any drama as I am sure these are good people.

    I just wanted to clarify for myself that I wasn't mistaken. Had I not posted about it, I would not have known that the FTC guidelines are only relevant to US bloggers. I didn't want to call someone out without getting my facts straight. Even though I know now, I don't think there is a reason for me to reveal their names.

    I just hope this topic will resonate with the community and make bloggers a little more aware that it's not always about following rules but more about being ethical and respectful to the people who have helped make your a blog success.

  • http://www.the-working-traveller.com/ Shane @ The Working Traveller

    Though I'm new to blogging an (unrelated to this topic) email I received today reminded me of the surprising amount of influence we can have. I agree with you that there's no reason to name names. People make mistakes and perhaps just making a little bit of a fuss over this issue will remind us all of our responsibilities.

  • monica530

    Thanks for your feedback Andy. I agree with your method about adding links to your page. Though it is a nice gesture, just because someone decides to link you to your site, you shouldn't feel obligated to do the same.

  • monica530

    Thanks Monkey! You do a very good job playing Monkey's advocate and I'm glad you do because it gets me thinking. :)

  • http://www.gooverseas.com/ dunklea

    After reading this posts it occurred to me that some of the content I have written could be misconstrued as endorsement posts even though they weren't. I often just like to share quality products with my readers. Should bloggers disclose this information as well? It's a slippery slide, but I guess it all comes down to how much you trust the publisher of the content..

    Anyway, I enjoyed reading these!

    Cheers,
    Andrew

  • Garrett

    I agree completely! You should disclose everything. Make a joke about it, there's nothing wrong with actually trying to survive via travel blogging. Offer these kind of posts, tongue in cheek. Your reader will understand.

    Regarding why they contacted you via email, it looks like that's the only method you provide. Do you have a phone number available online?

    As someone who is both part of the travel blogger community but also a “company” within it, it's a community very conscious of any intrusion by organized corporations, no matter the size. Ultimately, maybe we need to have a central blogger non-profit org set up where people claim to be either a for-profit or not-for-profit blog, where the latter accepts no advertising of any kind.

    I think that's the only way to make sure that the stone being cast is truly deserved. Else, it's a murky grey area.

  • Anonymous

    Thanks for commenting Andrew! I think as long as we’re transparent about what we publish on our blogs and sites, there isn’t much to worry about.

  • monica530

    Thanks for commenting Andrew! I think as long as we're transparent about what we publish on our blogs and sites, there isn't much to worry about.

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  • http://www.vagabondquest.com/ Dina VagabondQuest

    I’m surprised to see that people don’t do the disclosure just because they are not bound to the FTC rule. I’ve only heard about the rule today, from your previous post. I think it’s sad enough to know that some people receive sponsored post, even worse without telling that it is sponsored. I can accept if the sponsorship is more like free or discounted ride/tour/experience for the exchange of a review in a blog post, where both sponsor and blogger agree that the post should contain the honest opinion of the blogger.

    Oh, in the different topic, do you know that some popular travel blog having their posts material copied and pasted from WIkipedia? That disgusts me.

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