Author Topic: $11,000 fines for Festool reviewers....  (Read 13083 times)

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Offline marrt

  • Posts: 128
$11,000 fines for Festool reviewers....
« on: October 05, 2009, 12:30 PM »
IF you don't report that you received your free (e.g., permanent loan) tools from Festool.  Be careful.

PHILADELPHIA (AP) -- The Federal Trade Commission will require bloggers to clearly disclose any freebies or payments they get from companies for reviewing their products.

It is the first time since 1980 that the commission has revised its guidelines on endorsements and testimonials, and the first time the rules have covered bloggers.

But the commission stopped short Monday of specifying how bloggers must disclose any conflicts of interest.

The FTC said its commissioners voted 4-0 to approve the final guidelines, which had been expected. Penalties include up to $11,000 in fines per violation.

The rules take effect Dec. 1.

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Offline BC6738F5BCE98B4

  • Posts: 61
Re: $11,000 fines for Festool reviewers....
« Reply #1 on: October 05, 2009, 02:02 PM »
It will be interesting/entertaining to see how these proposed rules a) are implemented and b) whether they are challenged judicially and survive.

No predictions on any of the above.

Offline WarnerConstCo.

  • Posts: 4076
    • Warner Mill Works
Re: $11,000 fines for Festool reviewers....
« Reply #2 on: October 05, 2009, 02:55 PM »
I think that will be another one of those infamous 'stupid' laws.

Seems impossible to enforce and I am not sure what the initial problem is.

Offline Peter Halle

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  • Posts: 11525
Re: $11,000 fines for Festool reviewers....
« Reply #3 on: October 05, 2009, 05:16 PM »
I have the solution.  Send me one of everything to review and I will be happy to pay the fine.  One stop shopping.  No hassle.

Waiting for UPS and holding my breath.   ::) ::) ;D ;D

Peter

Offline Alex

  • Posts: 5697
Re: $11,000 fines for Festool reviewers....
« Reply #4 on: October 05, 2009, 05:36 PM »
IF you don't report that you received your free (e.g., permanent loan) tools from Festool.  Be careful.

Well, I think I'm in the clear then. I don't think I got any freebies from Festool yet.

Offline Steve-CO

  • Posts: 787
Re: $11,000 fines for Festool reviewers....
« Reply #5 on: October 05, 2009, 05:39 PM »
IF you don't report that you received your free (e.g., permanent loan) tools from Festool.  Be careful.

Well, I think I'm in the clear then. I don't think I got any freebies from Festool yet.

Does a coffee mug count? 

Offline Groggy

  • Posts: 53
Re: $11,000 fines for Festool reviewers....
« Reply #6 on: October 05, 2009, 08:12 PM »
In my book it is a fundamental requirement that a reviewer should state up-front any link or benefit they have or receive from a company. Not to do so is misleading and dishonest.
TS-55R, OF-2200, OF-1400, OF-1010, MFK-700CMS BS-120, CMS-ST, CMS-VB, RO-150, ETS-150, DX-93, DF-500, KS-120, KA-UGs, LR32 SYS, FS-SYS, CT22, CT-Mini, FS 1080-LR32, FS 1400/2

Offline Steve-CO

  • Posts: 787
Re: $11,000 fines for Festool reviewers....
« Reply #7 on: October 05, 2009, 08:22 PM »
In my book it is a fundamental requirement that a reviewer should state up-front any link or benefit they have or receive from a company. Not to do so is misleading and dishonest.

There was a long thread about this subject that may be of interest, Tool Reviews

Offline rcher

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  • Posts: 17
Re: $11,000 fines for Festool reviewers....
« Reply #8 on: October 07, 2009, 12:09 AM »
I have always assumed that the reviewers on this site were getting  tools from Festool to review.  It is a nice perk for having the expertise and taking the time to do a review.  I trust the reviews here because of the obvious expertise of the people doing them.  I have found the reviews immensely helpful adjuncts to the somewhat challenging manuals provided by Festool.

Years ago, I used to review records for a magazine in Los Angeles.  I was given records to review, which I was then allowed to keep.  I wrote my honest opinion.  I don't see anything different here.

Offline ogrebelle

  • Posts: 10
Re: $11,000 fines for Festool reviewers....
« Reply #9 on: October 07, 2009, 02:01 PM »
With the proliferation of "experts" that the internet and blogosphere have created I think this is a great idea.  Not that I have a specific concern on this site but the new disclosures would give me that extra little bit of knowledge into the reviewer's situation that will help me decide if I want to trust the reviewers opinion.  Let's face it, in today's world any 12 year old with his mommy's laptop can put himself out there as a seasoned expert and who would be the wiser?  We can't hear his voice or see his face.  Also, some people's motives change when there are benefits/compensation involved.  Sad but true.  People are indeed for sale, and some rather cheaply, we see it on the news and in the paper everyday.  Is it sad that people (including myself) feel that this kind of law needs to be in place to keep people honest in an anonymous world?  Of course it is.  Otherwise we may as well label every review or opinion as "for entertainment purposes only" as that is exactly what some reviews are and we all know it.  I personally put a lot of creedence in the unbiased, unbought, non-professional reviewer reviews.  This is not to say that I inherently distrust compensated reviewers opinions, I highly regard quite a few of them.
Doug
« Last Edit: October 07, 2009, 04:11 PM by ogrebelle »

Offline Notorious T.O.D.

  • Posts: 506
Re: $11,000 fines for Festool reviewers....
« Reply #10 on: October 07, 2009, 03:59 PM »
For better or worse many positive endorsements and ratings are bought and paid for in the business world.  I have seen it in the computer industry and I have been told that the ADA certification for tooth paste is just purchased from the ADA for $100,000 or something like that.  Don't know if it is true but I would not be surprised knowing what I have seen for other products.

I also believe a lot of the sale tools that you see at HD and Lowes are actually seconds in many cases....but that is another story...

Best,
Todd

Offline Shawn

  • Festool Dealer
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  • Posts: 126
Re: $11,000 fines for Festool reviewers....
« Reply #11 on: October 31, 2009, 09:22 PM »
IF you don't report that you received your free (e.g., permanent loan) tools from Festool.  Be careful.

Well, I think I'm in the clear then. I don't think I got any freebies from Festool yet.

Does a coffee mug count? 

How did you get a coffee mug... Festool? Freebies??
Shawn Ederman
Atlas Machinery Supply Ltd.
233 Queen St. W., Toronto, Canada
www.atlas-machinery.com
416 598 3553

Offline Thor

  • Posts: 2
Re: $11,000 fines for Festool reviewers....
« Reply #12 on: November 22, 2009, 09:07 PM »
Well I don't know how/if they will enforce the law. But I do like to know that the review I am reading is by someone that has been paid for said review.

Offline Jesse Cloud

  • Posts: 1722
  • Festooling at the end of a dirt road in New Mexico
Re: $11,000 fines for Festool reviewers....
« Reply #13 on: November 23, 2009, 10:20 AM »
What an incredibly dumb law!  I do like the idea of disclosure though.  I think all the reviews I have seen on this blog have been fair and well thought out.  I appreciate the work the reviewers have put into it, and I don't begrudge them their 'free' tool.  However, I would not put much stock in it if they said the tool was worth the price.
Thanks reviewers, keep those reviews coming (even though many of them cost me $$).

Offline Jimhart

  • Posts: 218
Re: $11,000 fines for Festool reviewers....
« Reply #14 on: November 23, 2009, 11:20 PM »
It covers reviews, endorsements and testimonials and it's meant to try to reign in companies use of what appears to be unbiased, representative claims re the quality of their products.

If the 'celebrity' loses 60 lbs. on the weight loss program, but the average results of people who sign up is that the only thing that lost weight is their wallet, then the celebrity is gone.

If 3 people got a 15% return on an investment, but the average investor barely broke even, then they can't use the testimonials from the three people to create the impression that their results are typical.

We beat it to death here a year or so ago when it turned out that there were some 'reviews' posted on this site by people who had received the product gratis and didn't disclose that. It's water under the bridge.

These new rules will have a significant impact on my business, but I'm glad they're there. It levels the playing field between the people who play it straight and the people who don't.

Offline Bob Swenson

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  • Posts: 184
Re: $11,000 fines for Festool reviewers....
« Reply #15 on: November 24, 2009, 11:39 AM »
When I did a review  on the Festool Cup I fully revealed the source
Bob
« Last Edit: November 24, 2009, 11:57 AM by Bob Swenson »

Offline Bill Wyko

  • Posts: 821
Re: $11,000 fines for Festool reviewers....
« Reply #16 on: November 28, 2009, 02:30 PM »
Even though the tape measure was given to me, I think my review makes complete sense. It does what I said it does, it has the features I said it has and they do what they are supposed to do. I think a law like this is a pathetic waste of tax payers money. I want to know how much money is being spent to monitor this foolishness. I'm guessing more "stimulus money" going to waste.
The bitterness of poor quality, lingers long after the cheap price is forgotten.