June 30, 2010

On January 26, 2010, Ann Taylor’s LOFT division ("LOFT") offered an "exclusive blogger preview" to bloggers attending the clothing retailer’s preview party featuring the company’s summer 2010 product line. In its invitation, LOFT promised bloggers a "special gift" if they attended the event, and promised them further compensation if they covered the event on their blogs within 24 hours of the party. The invitation drew numerous bloggers to the event, including many whom enthusiastically blogged about the preview party and the products featured. Some of the bloggers disclosed that they had received gifts from LOFT in exchange for their promotion of the event. But, others did not. The silence of the bloggers was enough to cause the Federal Trade Commission ("FTC") to launch an investigation. The target of the FTC’s investigation was not the bloggers, however. The target was LOFT.

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