Federal regulators are taking on Facebook, but bribery of auto writers goes unchecked

DEEP DIVE: On a all-expenses-paid trip to the nation's capital to cover The Washington Auto Show, I loved my lavish seafood dinner at Cedar Restaurant, including this appetizer of Pan Roasted Diver Scallops prepared without butter or cream -- or what the kitchen called "kosher."

WILD BOAR: The auto writer on my left, a freelancer for The New York Times, tucked into Texas Wild Boar Loin Chops in a bacon vinaigrette.

By VICTOR E. SASSON
EDITOR

HACKENSACK, N.J. -- Federal regulators made headlines recently when they hit Facebook with a "record-breaking and history making" $5 billion fine for violations of users' privacy.

The Federal Trade Commission's Bureau of Consumer Protection is keeping the world's largest social network under a microscope.

But regulators have only issued "guidance" to writers, bloggers and other so-called  influencers who promote the global automobile industry.

"We've been directing our guidance to influencers in all industries, not specific industries," FTC spokesman Mitchell J. Katz said, citing this example:

"I'm a blogger and a company wants me to attend the launch of its new product [a car, pickup or SUV, for example]. They will fly me to the launch and put me up in a hotel a couple of nights. They aren't paying me.... If I write a blog sharing my thoughts about the product, should I disclose anything?" 

"Yes," federal regulators say. "Knowing that you received free travel and accommodations could affect how much weight your readers give to your thoughts about the product, so you should disclose that you have a financial relationship with the company."

Guidelines often ignored

Those guidelines are often ignored by members of the International Motor Press Association, Washington Auto Press Association and similar groups, which represent writers for newspapers, magazines, blogs and other social media.

I recall meeting a writer for a men's lifestyle blog during the media dinner for The Washington Auto Show in February 2017.

He cut into a large ribeye steak, ate only a few pieces and wearily put down his fork and knife, noting he's gained 30 pounds going on free media trips.

He described a dizzying schedule of six upcoming junkets, including a flight to Hawaii, to see new and slightly revised car models.

That all-expenses paid trip to the nation's capital to cover the auto show, including fine dining, cocktail parties and even two $25 gift cards, was paid for by the auto dealers who sponsored the show.

RIDING THE RAILS: A special Amtrak rail car was arranged to take about 30 auto writers to the nation's capital from Newark, and return them the following night. Describing some of the writers as journalists is a stretch. 

Bribery of auto writers

One of the biggest reviewers of new car models is Redline Reviews, a YouTube a channel with more than 635,000 subscribers.

You won't find anything in the "About" section about the all-expenses-paid junkets to exotic locations the reviewers receive to prepare their glowing reports.

Similarly, Scotty Reiss, founder of A Girls Guide To Cars and president emeritus of IMPA, doesn't go into any details about the arrangements that allow her and other writers on the site to appraise the newest models or post travel articles.

This week, Reiss' review of the gas-guzzling 2020 Lincoln Aviator notes the monstrous SUV "sets new standards for American luxury" -- echoing the brand's TV commercials.

Blogs, newspapers

Citing agency guidance, the FTC spokesman noted reviewers for newspapers and TV stations have an audience that "probably understands that your job is to provide your personal opinion" on behalf of the paper or station.

"In that situation, it's clear you did not buy the product yourself -- whether it's a book or a car or a movie ticket," he said, adding:

"On a personal blog, a social networking page, or in similar media, the readers might not realize that the reviewer has a relationship with the company whose products are being recommended.

"Disclosure of that relationship helps readers decide how much weight to give the review."

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