America's memo to bloggers: don't lie, or we'll fine you

The long-running debate over freedom of speech on the internet took a new twist yesterday, when America's most important regulators - the Federal Trade Commission - decided to approve new rules to stop independent bloggers from hiding their links to advertisers.

More accurately, the FTC has put forward a new series of guidelines designed to encourage fair and transparent product reviews online - including an attempt to regulate "payola" on websites and blogs. The possible consequence of breaking those rules? A fine of up to $11,000 (more than £6,800 in real money).

Payola schemes - where web users are offered money or gifts to write about certain services or products - have increased in recent years, as marketers realise that there's a lot of hay to be made by using freebies and cash incentives to encourage bloggers, web users and forum contributors to produce reviews or testimonials. At its worst, it is a form of astroturfing, the pernicious practice of trying to trick people into thinking that has widespread support from ordinary members of the public.

However, the FTC's guidelines - which are detailed in this press release - could also stretch to sites like Facebook and Twitter, according to this CNet report. It says that FTC bigwig Richard Cleland said he "plans to keep tabs on social networks as well as blogs"...