the F rant

There is some talk that the US Federal trade Commission (FTC) is looking at regulating social media, with particular reference to ensuring full disclosure of “paid blogs” – in other words, the US Government will enforce that bloggers disclose whether they have been paid to write things about the product or item they are discussing.

This is an incredibly stupid idea for a number of reasons:

It assumes that blogs are somehow a privilege, rather than a right – this is incorrect.  The Government assigns a limited number of spaces for heritage media such as radio spectrum and TV spectrum; there is a trade off.  The Government assigns channel spectrum to a small number of media providers, an oligopoly, and in return the members of the oligopoly follow strict guidelines regarding what they can broadcast, when they can broadcast it and how they broadcast it.  It’s a cosy arrangement that has meant for guaranteed profits for media companies and “safe TV” as “provided” by Government.
Social media is very different.  There is no limit to the number of social networks, blogs and forums that can exist in the world – and there is very little that any Government can do to enforce these within strict geographical jurisdictions (unless you’re a goose like Stephen Conroy).  Anyone can start a blog, post on a forum or chat on a social networking group, and anyone can read them.  Nielsen Online recently found that 41% of Australians post comments online about products or brands.

It also assumes a level of stupidity and gullibility of social media consumers.  The nature of social media is such that “the crowd”, the large number of discussions around various topics, will work towards the true mean.  In other words, the more people in the conversation, the more honest it will naturally be.  While we can all be hopeful that people post honestly, and without favour – the nature of random collaboration and conversation online means there is seldom a voice of authority – but there can be a community of authority, with a plurality of ideas.  If someone is paid to post a certain way, well that’s their good fortune.  It doesn’t mean that they will be listened to, or that their authority will be maintained.  Besides (in Australia at least), people don’t trust single bloggers enough to allow them to influence their personal purchase decision making.

It will add a layer of regulatory compliance and headaches for anyone in the social media space, reaching every element of user generated content, whether it be: registration of users, submission of comments, moderation services, the nature of the social space – every link of this user generated content value chain will have to be regulated – a practical impossibility.

The most concerning trend of all is the trend towards Government regulation.  People went bezerk when Government intervention increased in the aftermath of September 11.  Now these very same people who were overnight liberatarians are demanding increasing Government regulation as a result of the global financial crisis.  One would hope that this increasing interference from the big hand of Government is only an unwelcome passing phase and that people wake up and realise that, to quote Ronald Reagan:

Government exists to protect us from each other. Where government has gone beyond its limits is in deciding to protect us from ourselves

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