The Federal Trade Commission (FTC) is planning to regulate online viral marketing that uses blogs and social networking sites.
Marketers are spending billions worldwide to get the endorsements of key bloggers and groups on social networking sites. One tactic, used by Microsoft and others, is to send products to bloggers on 'long-term loans' on the understanding that they will comment about them on their sites.
Under the new regulations being proposed, such bloggers would be legally liable if they make untrue statements about the products or services. The companies too would face sanctions.