Today, the US Federal Trade Commission (FTC) issued new guidelines for bloggers who accept payment or free merchandise in exchange for product reviews. The new guidelines will require bloggers to disclose any material connections with advertisers.

In general, I think that this is a good policy choice: it allows companies to advertise through bloggers’ reviews, but creates a layer of transparency for the reader. This allows the reader to take the material connection into account when assessing the credibility of the article. However, I find it curious that there is now differential treatment between blogs and other media.

For example, there is no requirement for motion pictures to disclose that they have been paid to place a company’s products in the film. Product placementhas become extremely pervasive in movies, television shows, and even news broadcasts. In a 2006 survey by the Association of National Advertisers, it was found that two-thirds of advertisers surveyed had employed product placement as part of their overall brand strategy. Respondents indicated that viewers had a “stronger emotional connection” to a brand when placed in the narrative of a television show, as compared to traditional television advertising. According to PQMedia, the total product placement market as of 2006 was estimated between $3.07-billion and $5.6-billion (United States dollars).

Given how much more pervasive this form of product placement is than paid product reviews on blogs, doesn’t it make sense to require disclosure of product placement as well?