“The issue here,” says Cleland, “is whether, if the consumer knew of the relationship between the advertisers and the blogger, would it affect the credibility of the blogger’s statements?” If so, the new guidelines would permit the FTC to demand that the blogger disclose the connection, with failure to comply resulting in fines as high as $11,000.

…

The problem, critics contend, is the lack of clarity in the FTC Guides on what will constitute a violation. Beyond direct payments from companies to reviewers in exchange for specific coverage, the guidelines seem to extend to consumer and personal websites where advertising content and editorial content overlap.

Read the rest here.

One thing that came up in my reporting that I didn’t get a chance to address in the piece is the question of whether blogs are a publishing medium where conflicts of interest are a form of commercial corruption, or just equivalent to individual speech, in which case the government can’t regulate them at all. In this case, the FTC is treating blogs as a publishing medium, at the expense of the many individuals who use the platform simply to carry on personal conversations.

Meanwhile, the FCC seems to be approaching the internet as a form of speech and therefore pushing net neutrality on the grounds that all speech must be treated equal. That approach takes away all the specific protections that commercial content is premised upon (like intellectual property rights), even as that publishing is about to move online.

Meanwhile, Congress, which oversees both agencies, is trying to draw a line in the middle of the blogosphere between those who use blogs as a publishing form–and get special rights but also stricter rules as a result–and those who are just speaking. The Congressional shield bill may be doomed now that it’s lost White House support, but I think in principle, some way of distinguishing commercial from non-commercial content online is going to be necessary.

What frustrates me most, however, is how easy it is for the two agencies to put into law two conflicting definitions of the same space–the net–without anyone raising questions about the inherent contradictions between their approaches. It’s a clear case where some regulatory consolidation is needed.

Excuse 1. It was crunch time on the Forbes Billionaires report, for which we’ll be continuing to roll out content all this week and next on our website. Right now, the big focus of reader feedback has been the controversial listing of a Mexican drug baron–how does Forbes know where he got his money? How come criminal activity gets Allen Stanford knocked off the list but not El Chapo? My personal opinion is that there’s real money in the black market, and covering ugly realities is part of journalism, but I do think we ought to be critical, not adulatory in our description of what he does. My own story for the report (link to come) is on two Nigerian billionaires, and I’ve tried to take my own advice. [Updated: My story‘s up now]

Excuse 2. It was midterm season at Columbia and I’ve been swamped with work. One assignment may be of interest to readers: for my computers and the law class, which I blogged about before, I wrote about the shield bill now floating in Congress, that would protect journalists’ anonymous sources. I blogged my basic take on the bill a while back and got some useful feedback in the comment section; in my essay, I took up one suggestion, to define journalism as reporting, and combined with my desire to maintain journalism as a profession, to try to block out a 21st century interpretation of the 1st amendment. Any thoughts on the essay would be much appreciated, since I’ll be rewriting it in the coming weeks.

One thing that I’ve been thinking about while writing that essay, and indeed, over the last few weeks, is where I actually fall on the political spectrum. Many lefty friends who usually regard me as an ally have been writing to me asking why I keep linking to conservative thinkers, praising centralized power and waxing nostalgic for old values. Have I, one commenter wrote in an email, gone over to the dark side? No, I haven’t, but the concern suggests my hunch about partisan sea change was correct: as the left goes liberaltarian, I’m falling out of it. As the center goes Hamiltonian, I’m falling into it. And as the right goes silly, I’m shedding not a tear at all.

It’s not yet a perfect shift: David Brooks, who has been rejoicing alongside me about the rise of Hamiltonianism, still hasn’t made his break from the traditional right–he has high praise for Alexander Hamilton (duh) and Teddy Roosevelt, but also David Cameron. News flash, Mr. Brooks: David Cameron is the opposite of an institutionalist; his first move will be the evisceration of Britain’s health care system. But it’s a real shift: witness the hiring of Ross Douthat to the NYT opinion page this week, consolidating Brooks and Douthat as pro-government conservatives (who like social spending) and putting them in the same room with pro-government liberals like Krugman (who likes markets, but wants them aggressively regulated) and liberal hawks like Friedman who likes big geostrategic initiatives. This is the institutionalist, Hamiltonian coalition. Conveniently, I already have a subscription.