Sponsored content must be clearly marked, rules OFT in blog network case

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Paid-for comments and postings about services and products on companies' blogs and via Twitter must be clearly identified, according to a new ruling from the Office of Fair Trading (OFT) , which strengthens the OFT's position on online communications and marketing.

The ruling was issued in a case involving commercial blogging network Handpicked Media , which operates a collection of independent style, health, beauty and entertainment sites. The OFT's investigation suggested the company might be operating in breach of some consumer protection legislation.

The investigation into Handpicked Media was started by the OFT under its own initiative after it became concerned that posts on Handpicked Media's network of sites and messages on its twitter page promoted its clients without sufficiently making clear which content had been paid for.

"Online promotional activity, just like any other promotional activity, must clearly identify when promotions and editorial comment have been paid for, so that consumers are not misled," says the OFT on its website.

"Handpicked Media operates a network of bloggers and niche websites across a variety of sectors. Through the signed undertakings, it has agreed not to engage in promotional activity unless bloggers within its network prominently disclose, in a manner unavoidable to the average consumer, that the promotion has been paid for or otherwise remunerated."

Handpicked Media is now required by the OFT to clearly identify promotional comments that have been paid for and has signed undertakings agreeing to this.

"The internet plays a key role in how people purchase products and services and the importance of online advertising continues to grow. The OFT has bolstered its expertise in this area and is taking targeted action to ensure that the law is clear, increase business compliance and empower consumers," says Heather Clayton, senior director of OFT's Consumer Group, in a release .

"The integrity of information published online is crucial so that people can make informed decisions on how to spend their money. We expect online advertising and marketing campaigns to be transparent so consumers can clearly tell when blogs, posts and microblogs have been published in return for payment or payment in kind. We expect this to include promotions for products and services as well as editorial content."