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On April 2, 2009, the Financial Times reported that the U.S. Federal Trade Commission (FTC) was updating its decades-old rules governing companies' liability for making false and misleading comments for the social media age. According to the publication:

"Advertisers in the US are bracing themselves for regulatory changes that they fear will curtail their efforts to tap into the fast-growing online social media phenomenon. Revised guidelines on endorsements and testimonials by the Federal Trade Commission, now under review and expected to be adopted, would hold companies liable for untruthful statements made by bloggers and users of social networking sites who receive samples of their products."

Experts expect the FTC's rules to dampen marketers' enthusiasm for social media marketing -- especially the practice of providing bloggers with free samples of products in exchange for a review. Advertisers believe the regulations are too strict and that it will be difficult for marketers and regulators to prove whether a blogger or another individual is operating as a company agent.

On October 5, 2009, FTC announced that it had updated its guidance to focus on what it calls "word of mouth" marketing.  In a press release the agency noted: "These examples address what constitutes an endorsement when the message is conveyed by bloggers or other 'word-of-mouth' marketers. The revised Guides specify that while decisions will be reached on a case-by-case basis, the post of a blogger who receives cash or in-kind payment to review a product is considered an endorsement. Thus, bloggers who make an endorsement must disclose the material connections they share with the seller of the product or service."