Well those proposed rules are now a reality. The FTC has established new rules on Blogger Product endorsement and they are as follows:
1. Bloggers must disclose if they receive a financial benefit when writing a post about a product or service. FTC views this transaction as an endorsement of the product or service.
2. Disclosure can be a banner or part of the review.
3. Diclosure must be clear and direct.
4. If there is no disclosure, FTC may send a Cease and Desist. If Cease and Desist is violated or ignored, then blogger can receive a 11K fine.
5. Rules go into effect December 1.
Although, the rules have been established, the FTC has admitted that they will not actively pursue bloggers. Most likely, the FTC will only pursue clear rampant violations and those will most likely be the result of a tip from a concerned consumer. Hopefully the new rules will encourage bloggers to be as transparent as possible regarding product reviews. Transparency allows consumers to make informed buying decisions.