Buzzword: Blogola

You’ve likely heard of the “payola” schemes of early broadcast radio, where local radio stations would receive money from record labels for giving certain artists’ songs preferential air time. Now you may hear a lot more about so-called “blogola,” which some say is the Internet-era equivalent.

The term describes the acceptance by some blogs of free products or services, or other gifts and remunerations, from companies looking for a positive review of their offerings. It’s controversial enough to have now attracted the attention of the Federal Trade Commission.

The AP reports that the federal agency is looking to implement a set of guidelines to combat blogola and enhance transparency in the blogosphere. Unlike journalists who work for news organizations that have a set of ethical standards, many bloggers, who are often self-employed, have no official obligation, and many do not disclose gifts and perks they receive.

Some of the highest-profile cases of blogola have involved technology blogs. In 2006, Microsoft, AMD, and PR firm Edelman were criticized when it was revealed they had sent Acer laptops pre-loaded with Vista to prominent bloggers, hoping for a review of the then-new operating system.

If you’re a regular reader of this blog, you know how Consumer Reports operates: No blogola or payola here. For the record, our policy is to accept no gifts—including free products or trips—from any manufacturer. (We will sometimes make exceptions for modest items provided to all media, such as food at news conferences or thumb drives that contain product information.) Neither do we run ads, as you may have noticed on ConsumerReports.org or in our magazine.

What do you think of the FTC’s initiative? Is it a necessary move, or, as Caroline McCarthy at CNet has questioned, will the attempt to regulate the diverse and crowded blogosphere be like “herding cats?” —Nick K. Mandle

Update: For another take on the FTC's plan for bloggers, check out Jeff Blyskal's post on the Consumer Reports Money Blog.