On Monday the Federal Trade Commission (FTC) released the updated and revised version of the Guides Concerning the Use of Endorsements and Testimonials in Advertising. The guides address the issues of endorsement and disclosure and what it will mean for today’s social media participants.

The first of two major changes is that bloggers who review products must disclose any connection with advertisers including whether or not they received paid compensation or free product. The same will go for celebrity endorsement; they will need to fully disclose any connections they have to companies.

The second noticeable change is not directly aimed at bloggers, however it aims to bring the same sort of regulations that govern other forms of media including print or television to the online space. This rule eliminates the right of advertisers to boast results that differ from what is typical - for example a weight loss supplement.

“We were looking and seeing the significance of social media marketing in the 21st century and we thought it was time to explain the principles of transparency and truth in advertising and apply them to social media marketing. Which isn’t to say that we saw a huge problem out there that was imperative to address,” said Richard Cleland, assistant director of the division of advertising practices at the FTC.

While many won’t find these rules a huge shock or hard to incorporate into their strategies it will demand a more authentic dialogue between companies and consumers. Fines for those who chose not to disclose material connections will run up to $11,000 per post.

The previous rules had been in place since 1980 and were deemed outdated when the commission gave notice last November that it would be taking up the matter. The new rules are aimed at the rapid growth and emergence of new media and will come into effect beginning December 1, 2009.