Regulations proposed on online viral marketing.

Marketers are spending billions worldwide to get the endorsements of key bloggers and groups on social networking sites. One tactic, used by Microsoft and others, is to send products to bloggers on 'long term loans' on the understanding that they will comment about them on their sites.

Under the new regulations proposed by The Federal Trade Commission (FTC) such bloggers would be legally liable if they make untrue statements about the products or services. The companies too would face sanctions.