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I think the FTC will use a similar test to the one you've outlined above, if it ever comes to that (and that remains to be seen). Given the small amounts of money that these bloggers are willing to accept for these posts, it would be extremely sad to see one of them become the FTC poster child for improper disclosure practices.
Blame Me, I Saved PPP, Where's My Check?
And you, Copyblogger, I will follow you to the ends of the Internets with that ftc affiliate marketing nonsense. :) Let it die, only you and a handful of others think it has anything to do with affiliate marketing. The PPP guys are desparate to point the arrow away from the target they put on their back through their own PR success. Don't believe the hype!
Yeah, and we're all lawyers. :)
I agree with you about PPP though. From Google's perspective, paid posts should include machine-readable disclosure in the form of nofollow attributes on paid hyperlinks.
See the video here:
http://www.cobrandit.com/blog/2006/12/mary_engl...