On Monday, October 5th, The Federal Trade Commission implemented a new policy that would make product information and online reviews more accurate for consumers, regulating blogging for the first time and mandating that reviews and testimonials reflect actual results.

The FTC will now require that writers on the Web clearly disclose any gifts or payments they may receive from companies for reviewing their products and also states that advertisers featuring testimonials that claim dramatic results cannot hide behind disclaimers that the results are not typical.

The final guidelines were approved with an overwhelming vote of 4-0 by the FTC Commissioners which are not binding law, but rather interpretations of law that they hope will help advertisers comply to regulations. Violating the rules, which take effect December 1, 2009 could result in various sanctions including a lawsuit.

The Reviews and Testimonials have to explain exactly what consumers should expect to experience if they were to purchase the product. Previously, companies had just included disclaimers when results were out of the ordinary — such as a large weight loss — noting that the experience was not typical for all customers.

Bloggers have long praised or criticized products and services online, but what most consumers don’t know is that many companies pay reviewers for their write-ups or give them free products such as toys or computers or trips to Disneyland, contrary to traditional journalism outlets, in which products that are borrowed for reviews usually have to be returned.

Company and product reviews and testimonials can be effective for consumers who are in the shopping stage since they show other consumers sharing their experiences with a potential product that they would like to purchase, giving the consumer the idea that they will have a similar experience. But they are misleading to consumers if they don’t disclose what they should truly expect to experience.

Not only will consumers now have more accurate reviews, companies will have more honest reviews of their products which will help them make any necessary changes to improve the product. There are a few question that I have now that they have changed the policy, as bloggers, Do you think bloggers who were just in it for the products or the money stop blogging now that they have to report what gifts they are receiving and  the new regulations are in place? Will these new regulations be enforced? Will bloggers report the correct information on the type of gifts and money they receive?

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