• LL Social, Wednesday, February 8, 2012 12:39 PM

Picture-posting network Pinterest is apparently modifying “pins” -- or links to products that users share on the site -- to pocket a little affiliate ad revenue. That’s according to LLSocial blogger Josh Davis, who explains that, if pins link to an e-commerce site, Pinterest adjusts the link and adds an affiliate tracking code. Then, if another Pinterest user clicks on the same pinned-picture (and buys whatever product is featuring), Pinterest gets a cut of the transaction.

“They [meaning Pinterest] don’t have any disclosure of this link modification on their site, and so far, while it has been written about, no major news outlet has picked up on the practice or its implications,” Davis writes. Despite this seeming lack of transparency, however, Davis doesn’t scold Pinterest for the practice. Sure, most sites have a moral obligation to disclose their financial interest with regard to affiliate deals.

However, “In Pinterest’s case, since they are not creating the content and are inserting the links automatically, they might feel that they are not promoting affiliate linked pins any more than other pins, and thus they don’t need to disclose as the placement is not affected based on the financial gain.” Still, when word of the deals inevitably spreads, we foresee some users demanding a cut of the affiliate revenue they helped create.

Read the whole story at LL Social »