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FTC demands blog disclosure, governs the Internet photo

I've often said that the Internet is one of the last bastions of free enterprise we have left in the world. I've also said it's not going to last. The FTC has taken us one step closer to proving me right today, by revealing it plans to govern the Internet and demand that bloggers disclose anything they receive from a publisher.

I know what you're thinking: Great! Accountability at last! But hear me out. I have no problem revealing when I receive a free game or a bit of swag. In fact, I think my readers are smart enough to know that most of the time I do, and we often make posts about our cool swag. However, what worries me here is the government involving itself in the affairs of blogs, something it should have no say over.

The wording of the report is rather vague, and when government bodies get vague, I get worried: "The revised Guides specify that while decisions will be reached on a case-by-case basis, the post of a blogger who receives cash or in-kind payment to review a product is considered an endorsement. Thus, bloggers who make an endorsement must disclose the material connections they share with the seller of the product or service."

In-kind payment could be anything. It basically pertains to any item that has some sort of value and is given to the reviewer by the publisher, and that people would "not expect." Whether the FTC expects bloggers to receive review copies, or whether they only expect IGN and print mags to get them, is beautifully unclear, allowing them to act at will on a so-called "case-by-case" basis. Oh, and you're an idiot if you don't think this won't be included in some sort of tax scheme eventually.

The new guidelines will become enforceable on December 1, and bloggers who violate it will be expected to pay an $11,000 fine. What's more, the FTC does not consider "traditional" media like print and TV shows to be accountable, singling out blogs specifically. However, it doesn't define who exactly is accountable. Is it just "blogs" or would IGN have to disclose stuff? Is Destructoid included? It seems to just include "hobby" blogs, but it's entirely for the FTC to decide what constitutes hobbyism and professionalism. For a report that demands disclosure, it's not exactly forthright itself.

This might not seem like a big deal right now (in fact I fully expect many of you to ask what, exactly, the problem is), but that's how slopes get slippery, and how one set of guidelines leads to another set of guidelines.


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61 comments | showing # 1 to 50

RonBurgandy2010's Avatar - Comment posted on 10/05/2009 15:30
RonBurgandy2010
I don't know how the Internet as a whole is going to change in the coming months, but I do know that dTunes and blogs like it are never going away. If they attempt to shut my series down, I'm going to court. Hell or high water, music and ideals will be shared through the internet, and I won't let anyone take that away from me or my peers.
CelicaCrazed's Avatar - Comment posted on 10/05/2009 15:32
CelicaCrazed
This seems like they're almost trying to level the playing field. You know, make people more aware that blogs and small outlets are receiving perks and freebies while the IGNs and GameSpots are given the impression of being honest and completely unbiased. That's just not right.
CitizenErased's Avatar - Comment posted on 10/05/2009 15:34
CitizenErased
I generally dislike any reference to "slippery slopes" as that argument is the kind of thing that gets used against gay marriage and, really, it's a fallacy in a lot of ways.
Still I can't deny that this worries me. Especially since blogs are being singled out. I don't see why that's necessary...
protoknuckles's Avatar - Comment posted on 10/05/2009 15:35
protoknuckles
This is insanity. There are very few rights I'll march for, but I demand my freedom of speech. The internet needs to be free, and games shouldn't be censored. I'll go to jail for these.
Psycho_Babble's Avatar - Comment posted on 10/05/2009 15:35
Psycho_Babble
Members of the reigning administration have already spoken of governmental control of the internet. "Yes We Can"...."Do Whatever The Hell We Want With People's Rights."

Get it?
Psycho_Babble's Avatar - Comment posted on 10/05/2009 15:38
Psycho_Babble
What's so interesting is that this is targeting blogs. The reason is obvious: a blog can be written by anyone and can be believed by anyone. If the common man is speaking out to the common man, then that's a problem for the Gestapo. It means the bourgeoisie have that much control out of their hands and that is certainly not something they are okay with.
Solid Squirrel's Avatar - Comment posted on 10/05/2009 15:43
Solid Squirrel
The thing is, the fine is UP TO $11K. It all depends on the situation I guess, like getting a free car as opposed to a $60 game with a subscription to Rolling Stone for reviewing Brutal Legend.
Generally, traditional print and TV media disclose this information regularly--for example--albeit a different situation-- the Chicago Tribune always disclose that they own both WGN Radio/TV and (used to own) the Chicago Cubs at the end of every article they wrote about them in the interest of fair and unbiased media. Print media thrives on reviews for their readers--so naturally they need copies of games and other such media provided to them-- but having worked for national print mag myself, I can say with absolute certainty that advertising is usually the real payout that companies give to them for a "glowing review". It's the very heart of any media outlet to stay afloat.

The same should hold true today--especially in this age of guerrilla media--where everyone can be the next Edward R. Murrow in their own mind. Far too often any shmoe with more than 500 hits to their blog site can get "credibility" with companies to ask for product to review, and if the companies feel they'll get enough impressions from it, they'll provide it. Keep in mind that this very site grew from nothing, with no corporation backing it up, and probably did the exact same thing; asking for review material, possibly a few perks--all the FTC is doing now is saying to the newcomers "listen, you may think you're hot sh*t now that you've got companies sending you free stuff, but if you don't disclose that like a professional reviewer/journalist does, you're going to find your bank account missing a few more zeros than usual". Bloggers want to be seen and heard--and if they find out they might be able to profit from it as well, then accountability is in order.

It keeps them honest.

It's the same for college sports players recruited from high school--in decades past it was a rampant gift influx of cars, money, even houses to lure the best (if not the brightest) talent to their colleges--scholarships just wasn't enough for the kids. Now college leagues being watched like a hawk.

And really, isn't honesty what we want most from reading a review when we log on? The last thing I want is reading a blatantly brown-nosing article because some blog got the first advance copy or got invited to a Superbowl or a gentleman's club for "drinks".

Honesty truly is the best policy in today's gossip and third-hand fact media, and from the looks of it, the FTC is trying to maintain a slim modicum of that very idea.
bunnymud's Avatar - Comment posted on 10/05/2009 15:50
bunnymud
"...the FTC does not consider "traditional" media like print and TV shows to be accountable..."


No surprise there.
killatia's Avatar - Comment posted on 10/05/2009 15:51
killatia
"...the FTC does not consider "traditional" media like print and TV shows to be accountable..."

Bullshit! If anything they should be more accountable then a blog.
mix's Avatar - Comment posted on 10/05/2009 15:52
mix
Hopefully things don't get too crazy........
UglyDuck's Avatar - Comment posted on 10/05/2009 15:56
UglyDuck
Without wanting to sound like a paranoid psychopath with a tin foil hat, I think this could get bad. Generally guidelines like this are only precautionary, so this hopefully won't have much impact, but I'm not keen on the idea that bloggers are now being held so accountable for ostensibly trivial circumstances.
Dead Movie Star's Avatar - Comment posted on 10/05/2009 15:56
Dead Movie Star
Shit is so not cash.
Wolfrider's Avatar - Comment posted on 10/05/2009 15:58
Wolfrider
Um... how do they plan on enforcing this?

Is this going to apply only to American sites or American bloggers? What about American sites with non-American bloggers? What about non-American sites with American bloggers? What about non-American sites with non-American bloggers but American companies? What about non-American companies selling their wares outside the US but reported on by American bloggers on American websites?

I love it when the government believes it can, from both a legal and logistical level police ANYTHING that happens on the internet.

It also doesn't make sense. How can you target blogs which are, essentially, personal lines of communication. Could they apply it to say a telephone conversation? A letter? What if I get a free game from EB Games and then tell my friend how awesome EB Games is? Am I required to disclose that they gave me a free game? What makes text online any different?

Fuck, fuck, fuck. I am sick and tired of fat, balding, useless, impotent old men telling me how my digital lifestyle should be run. Someone get 4Chan on this. They'll set the FTC straight right quick.
keisal's Avatar - Comment posted on 10/05/2009 16:02
keisal
i dont like where this is heading at all. i can understand doing this if say a publisher is saying "will give you copies of the game, and swag, and dlc codes, etc if you give our game a good review" but they arent doing that. i mean essentialy by giving you a review copy of the game the publishers and giving you incentive to review their game. but in no way are they telling you how to review it. furthermore blogs are suppose to be the ultimate means of free speach through no other method can your voice be heard by so many people. they keep up with this and the only way to get your opinion heard will be the old school method of standing on a street with a microphone...and who knows how much longer you'll be able to do that for.
ColonelPedro's Avatar - Comment posted on 10/05/2009 16:03
ColonelPedro
When the government is concerned about accountability in private matters the first thing that ought to be asked is whether or not they are even accountable for themselves.
GunSlap's Avatar - Comment posted on 10/05/2009 16:07
GunSlap
While it doesn't sound so bad for the time being, I agree with you completely Jim, sounds like the first step towards disaster.
Kaspar's Avatar - Comment posted on 10/05/2009 16:14
Kaspar
Ok, this is some scary stuff here folks.
When a government decides that it will meddle with your rights on the tubes, then mark my words, shit will start hitting the fan.

And writing this as an European, I can't take it as something that happens in America. Shit tends to travel in a tube.
JPVerrier's Avatar - Comment posted on 10/05/2009 16:17
JPVerrier
It'd be neat to know just how much advertising money/free stuff sites get from companies that have their games reviewed by them. Could get a spreadsheet going with dollars to score ratio and all that.

It'd be hilarious if they try to pick on personal bloggers.. and by hilarious I mean you just have to stand back and laugh at how ridiculous that would actually be.
Lance Icarus's Avatar - Comment posted on 10/05/2009 16:18
Lance Icarus
It's government intervention of this nature that made me worry about the Patriot Act and the domino effect it represented. I do love how pathetic the government tries to restrict the global Internet. They just can't handle the fact that people have an unfiltered medium to express ideas freely, for better or worse.
Jim Sterling's Avatar - Comment posted on 10/05/2009 16:18
Jim Sterling
"Bullshit! If anything they should be more accountable then a blog."

My thoughts exactly! I'd rather a magazine with its so-called "exclusive" reviews be held under a microscope than some hobbyist who's just trying to have fun writing on the Internet. Politically, I disagree with government telling ANY business how to conduct itself, but targeting bloggers just makes it slightly worse, in my opinion.
Cartman's Avatar - Comment posted on 10/05/2009 16:21
Cartman
Hey guys, i'm back!
Topher Cantler's Avatar - Comment posted on 10/05/2009 16:24
Topher Cantler
Welcome. Welcome to City 17.
Cartman's Avatar - Comment posted on 10/05/2009 16:25
Cartman
Topher wins.
Simbyotic's Avatar - Comment posted on 10/05/2009 16:26
Simbyotic
I'm glad I don't live in America. Activision, keep the checks coming!
TheStripe's Avatar - Comment posted on 10/05/2009 16:31
TheStripe
Holding sites and blogs to higher standards than TV and print reviewers will only end badly. This will get thrown out, because the major media corps that control certain blogs will never stand for it, and it will crumple beneath the constitution the first time it hits a courtroom.
DaedHead8's Avatar - Comment posted on 10/05/2009 16:35
DaedHead8
Despite Solid Squirrel's compelling arguments, I can still see the storm clouds brewing. That was a very apt picture you choose for the header Jim.
CormactheMac87's Avatar - Comment posted on 10/05/2009 16:39
CormactheMac87
I see most people are trying to jump on the "its all the government conspiracy"bandwagon which I think its absolute crap, grow up for gods sake These guidelines seem to have nothing to do with censorship or limiting rights, its about making printed blogs more transparent. We all log on to the likes of destructoid for an honest opinion the product that we spend our cash on, do we not have a right to know what possilbe vested interests bloggers may have? Where there is money to be made corruption will follow, hopefully these guidelines might improve this. Its not all a conspiracy ya know.
TheStripe's Avatar - Comment posted on 10/05/2009 16:43
TheStripe
The government just shouldn't be involved in the media. Period. They don't make Leo Laport say every time someone gives him a review gadget or software package, and they never will. What's ridiculous about this is that the FTC thinks they can just stomp into the internets with a banhammer and make all the liars go away. I wish they would start with Fox News.
ikiryou's Avatar - Comment posted on 10/05/2009 16:48
ikiryou
This is practically unenforceable unless they somehow develop omniscience overnight. Or maybe they're depending on the millions upon millions of always-rational, sane, intelligent internet dwellers to be their eyes and ears? Yeah, great idea, FTC.
taiki's Avatar - Comment posted on 10/05/2009 16:54
taiki
If you're a blogger operating out of the US, receiving swag from a company working within the US, then yes, the Federal Government does have some say into the transactions you make with said company.

I'm not sure what the regulation is for print and television/radio, but, quite frankly, this is pretty important. For blogs like Kotaku, Destructoid, etc. where you're pretty willing to show off and disclose what swag you've gotten, but for a blog like say, Science Based Medicine, if one of their bloggers jumps the shark and starts promoting a particular medical procedure or pharma product by name, it'd be nice to know whether or not they're actually in the tank for big pharma.
Temple's Avatar - Comment posted on 10/05/2009 16:59
Temple
The act is designed for bringing transparency is advertising. By principle its a good thing, though there are still questions about enforcement; though the FTC has said it will allow self-policing to occur for the time being and will deal with incidents on a case-by-case basis.

For good blogs there are many positives to what the FTC is doing, its holding blogger to the same standard as print journalist. Good blogs can gain legitimacy, bad ones will be exposed. The real target seems to be viral and guerrilla advertisers rather then journalists themselves.

The main goal is to make clear division between editorial and advertorial stories online. It likely won't be an issue unless there is some egregious ethical violation like the Gamespot-Gerstmann incident, and even such cases may not be targeted by the FTC due to them likely wanting higher-profile cases.
artha14's Avatar - Comment posted on 10/05/2009 17:04
artha14
The internet is our version I the wild west.... Only with more idiots.
CtMythic's Avatar - Comment posted on 10/05/2009 17:04
CtMythic
The only thing that surprises me about this is that America did it before Britain.
able_to_think's Avatar - Comment posted on 10/05/2009 17:06
able_to_think
So if Jim gives a game he got for free a good review, but doesn't say he got it for free, and I hate it, it SEEMS that I can sue him or Destructoid because of it.

(Don't worry Jim, I'm not going to)
Cowboy TTop's Avatar - Comment posted on 10/05/2009 17:23
Cowboy TTop
This is stupid and will prove fruitless in the end. Why think they are doing this is to help the falling print and tv media industry, that's why they are strangly exempt from the same treatment. Many of us would rather read a fan blog review of something, than that of a proper journalist who's just writing to get paid, and may know less about a subject matter (especially something like games).

You see, these days us net savvy peoples are on the rise, and pretty soon will dominate. A blog from a fan can now change the world for the better, and to tell you the truth, they totally fear the free power of the masses online. The birth of Dtoid, 1up etc sees fans in communities, focusing on what they know. Here, we are pretty much free to say what we like, and police ourselves to keep things on track.

If you take the recent Iranian elections as a an example, it shows just how, even one of the most draconian nations on the planet, could not shut up the people, or shut down the internet. Ultimately this is what all governments fear, and they'll try in vain to suppress and control us. Print and tv want our attention, and while this might sound reasonable to a degree for some, I doubt this will work. Those bloggers that do receive stuff, I'm sure never let it cloud their judgement or seem like some kind of seedy bribe. If they do receive something, there's always the option to return an item to the sender.

The true danger, is that they might start reaching beyond blogs and onto podcasts etc, and while that sounds scary, I think it will all be impossible to police. WTF...11K?? Why so much money, how'd they come up with that figure, and where's such potential money going? I'm betting its to feed lacking industries like print and tv, who I'm sure could easily afford such fees and hurt the small guy, but notice they never tell us about that bit. Indeed, what if you are a Brit like Jim, are you still expected to pay such extortionate money? And beyond U.S borders, how are they going to police that? Bloggers aren't just local all the time.

Best thing Dtoid, copy all those delivery notes for your preview stuff and send them to the FTC, to annoy them. Stupidly, they are the only ones who care about such tosh. Alternatively, it wouldn't hurt to say 'game purchased/supplied by company x for preview/review etc' above an article or review.
kinneas123's Avatar - Comment posted on 10/05/2009 17:51
kinneas123
Jim, I agree that it's completely ridiculous that print and television media aren't held to the same standards, but I strongly support legislation that requires if someone has received merchandise or free items before they write an article about a product. Think of the Gerstmann controversy--don't we have a right to know that Eidos was essentially giving Gamespot money for a good review? I think we should. You may find Big Government to be suspicious, but advertisers are worse, and extremely unscrupulous at that. The only reason the FTC makes laws like this is to protect consumers from getting ripped off by believing a person they thought they could trust who was actually on the take. It's the same as the fair advertising laws for television and magazines, and we should embrace these laws, not decry them. However, they need to be applied to television and print media as well--it's ridiculous to only apply them to the internet.
Im OK's Avatar - Comment posted on 10/05/2009 18:03
Im OK
When video game reviews become outlawed, only outlaws will review video games.

Seriously, what do they consider to be "blogs" in this case? I mean, even ignoring big sites like IGN or Gamespot or whatever (because this should definitely apply to them if anyone), but just within blogging spheres there's a difference between, say, front page Destructoid, the c-blogs on Destructoid, and some random ass dude on LJ or whatever. Does this apply to all of these? None of these? Only some? Give us some goddamn clarity here, FTC. Jeez.

To steal an example I saw in the comments on gamepolitics, if I get a free tube of toothpaste in the mail (unsolicited), and then I write on my Facebook saying how fucking awesome and life-changing this toothpaste is, do I have to disclose that I got that tube of toothpaste in the mail or else face a $11,000 fine? I would assume no, but knowing how fucked up the government can be, who can really say? How deep into the rabbit hole does this shit go?

I'm all for accountability, especially when you have stuff like the recent Eidos shenanigans going on, but if there is one thing you can trust about the government, it's that they'll find a way to fuck this up somehow.
Spike Marshall's Avatar - Comment posted on 10/05/2009 18:06
Spike Marshall
Aside from all of the juvenile 'OMGZ THE BIG BAD GOVERNMENT IS COMING TO GET YOU' stuff isn't more transparency and regulation a good thing for commercial blogs and the like. It stops the kind of stealth advertising Sony got up to a few years back and might halt debacles like the Kane and Lynch scandal.
matrixdude171's Avatar - Comment posted on 10/05/2009 18:14
matrixdude171
And just how are they going to see if you got anything for sure?
Wolfrider's Avatar - Comment posted on 10/05/2009 18:15
Wolfrider
For those of you who think that it's okay for the government to meddle with the media ask yourselves the very questions that have been raised. Namely, how does one define a blog?

Is Destructoid a blog? Maybe the front page can be considered "the press" but what about user blogs? What about personal blogs on TypePad or LJ or Blogger? What about comments attached to blog stories? What about forum posts? Are those covered as well.

As usual the FTC has done a piss poor job defining themselves and they've done a piss poor job because, as usual, the government doesn't even understand what the internet IS.

And if a bunch of filthy, ignorant American bureaucrats think they can force non-Americans to disclose anything online: Hahahahahahaha.

Hahahahahahahaha
Hohohohoho
Haha
ha
Elsa's Avatar - Comment posted on 10/05/2009 18:22
Elsa
I agree... the government should keep it's nose out of the internet. Yes, it's the last bastion of freedom and like the wild west there are all types of scams and hooligans ready to gun us down - but that's what makes it the internet.

I'm thankful I'm Canadian... where they generally don't care what we do on the internet until the Americans start pressuring us to stop the piracy and all the other stuff we do that Americans just don't like - and thankfully we also tend to move really, really slowly when making those changes.
project2501's Avatar - Comment posted on 10/05/2009 18:22
project2501
I'm reading a lot of anti-government regulation spew in these comments, but it seems as though nobody (or at least few) realize that federal regulation protects the consumer, as well as the health of an industry as a whole. You, being a reader of this site consume the product that blogs produce and you have a right to know when goods or services are exchanged for favorable reviews or placement. Don't you want to know when the product you are consuming may be tainted?

Lobbying is compensating someone in a position of power in exchange for special consideration and its fundamental concept is no different than a publisher giving cash/gifts/etc to a blogger. It is also *heavily* regulated by the US government and for good reason.

And bloggers, if you're having a hard time swallowing this just remember: the government thinks you're important enough to pay attention to what you're doing. Congrats guys and girls. You're in the big leagues now.
Niero's Avatar - Comment posted on 10/05/2009 18:40
Niero
What's a video game blog? Is that like a site with comments and community blogs like Game Informer, or is that a site with forums and user reviews like Gamespot? Maybe it's a site with user written pages and uploaded photos like ... well, you get what I'm getting at. The line is blurring so fast that the FTC has no idea what to do.
Wolfrider's Avatar - Comment posted on 10/05/2009 18:44
Wolfrider
@ project2501

No one is arguing that openness and transparency is a problem. What people are saying is that the FTC has no right to demand individual bloggers - their webspace is a personal, private creation that doesn't even fall under FTC jurisdiction.

For a commercial website like IGN or 1UP or a print publication these rules may very well apply but the FTC has made no attempt to distinguish between what is a commerical and what is a personal comment. The FTC can force a commercial website (based in the United States) to adhere to Trade Law. The FTC cannot impose those same restrictions on someone sitting in front of his computer typing a message. The problem isn't with the fact that I think companies should be allowed to buy peoples opinions but the fact that bloggers themselves are the ones receiving the fines. Why not fine the company? Wouldn't that make much more sense? What Joe-Youtuber is going to be able to fork over 11 grand because he said "Atlus rock!" when they sent him a bunch of free stuff.

Not only is this guideline unconstitutional, but it's a logistical farce. They haven't even outlined what a positive review would even be apart from saying it would be examined on a case by case basis.

And by the way: What big leagues are you talking about? Blogs are personal creations by individuals. The FTC can't just redefine them as being part of a commercial process without their consent. Would you be willing to pay a 11,000 dollar fine because your personal blog on DToid neglected to mention something the FTC considered a trade violation? That's the problem here: there's no attempt to distinguish between a personal and professional blogging.

As always son, it's best to RTFA. Take my advice. It will serve you well in life.
Poe's Avatar - Comment posted on 10/05/2009 19:30
Poe
So the FTC is trying to protect me from purchasing a video game I read a good review for that was only good because the reviewer was bribed to make the review good? No thanks. The fact that there are tons of video game blogs on the internet kind of makes this extra protection completely unneccessary. If, for example, if Mr. Jim Sterling writes up a praise-filled review for 3D Dot Game Heroes, and to my eyes it looks extremely biased, my first reaction would not be "Oh great and lovely FTC, please create a set of regulations that will force Mr. Sterling to divulge any evidence of bribery or bias". I would simply check out a bunch of other blogs that reviewed 3D Dot Game Heroes and see what the overall verdict of the game is over all the sources I check. What the FTC is doing is, to me, completely useless and is another instance of government nannying, where our dear government feels the need to save us from ourselves.

I don't need the government to decide for me that trans fat is too dangerous to be eaten at all, I don't need the government to impose a bicycle helmet-wearing law on me, and I certainly don't need protection from blogs that may or may not be trying to get me to buy a video game because they were bribed to do so,
wardrox's Avatar - Comment posted on 10/05/2009 19:39
wardrox
Good to see most commenters read the press release about the report that's not out yet :)

Personally, I see nothing wrong with encouraging full disclosure of all this. Transparency is what gave the blogs their power over the old-skool media, so keeping it that way can only make it stronger.
Mr Kite's Avatar - Comment posted on 10/05/2009 19:39
Mr Kite
Fuck that, government doesn't need to get involved.
GunSlap's Avatar - Comment posted on 10/05/2009 19:48
GunSlap
WAIT I'VE GOT IT!
The FTC should instead create their own blog where they flame other blogs who are caught excepting bribes/swag/blackmail from other parties! That way they get their say, and the tubes are filled with liberty!
taiki's Avatar - Comment posted on 10/05/2009 20:04
taiki
A teenager just got a visit from the Secret Service for putting a poll on Facebook on whether or not the President should die.

You guys realize this probably doesn't affect a site like DToid and is instead targeted more at sites where much larger readers reading more general interest blogs right? What the FTC is saying is that if you're a blogger, and you're taking big kickbacks from a political party or a big corporation that you should be disclosing that so everyone knows who's pay roll you're on. The FTC doesn't care that some blogger got a copy of some game for free and didn't dsiclose that.

The FTC is worried about much bigger cases of straight out astroturfing. For example a theoretical GM or Aetna paying "bloggers" to blog about how nice GM cars are or how health reform sucks. Which has happened. Google "Astroturfing." You'll find out about the really shitty things big business has done in the name of PR and deceptive advertising. That's the target. Not some guy who got a copy of Hannah Montanna for DSi to review on his shitty blog.
Queasy's Avatar - Comment posted on 10/05/2009 20:05
Queasy
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