Got a "Review" Blog or Site? You Need to Read This...

[Jesus Perez]

Market Leverage issued the following Compliance notice today. I'm sure others will follow soon.

Recently, the Federal Trade Commission proposed sweeping changes to its Guides Concerning the Use of Endorsements and Testimonials in Advertising (the “Guides”). These anticipated changes would have a material effect on many Publishers using blog websites, review websites, articles, news websites, and similar promotional materials to endorse offers on the MarketLeverage affiliate network.

While the Commission has not yet approved any modifications to its Guides, MarketLeverage, as a leader in the performance-based Internet marketing industry, recognizes the need to lead by example. Accordingly, the MarketLeverage Compliance Department, in conjunction with the MarketLeverage Legal Department and several leading industry experts, has developed guidelines regarding the usage of testimonials and endorsements in blog websites, review websites, articles, news websites, and similar promotional materials, with which all Publishers must conform.

While developing its own set of guidelines, MarketLeverage took into consideration three main areas of interest: the protection of (1) consumers, (2) MarketLeverage Advertisers, and (3) MarketLeverage Publishers. Specifically, MarketLeverage wanted to ensure that consumers would not be misled, that MarketLeverage Advertisers would feel confident that their brands would be promoted in compliance with all laws and regulations, and that MarketLeverage Publishers would have detailed guidance on how to comply with the new regulations.

Our Testimonial & Endorsement Policy is available for review here. We recommend that each of our Publishers reviews this policy now, and applies our guidelines to all promotional materials to ensure these standards are met.

If you have questions regarding the policy, or if you need assistance in determining whether your promotional materials comply with the policy, please contact your Publisher Manager or the Compliance Department at compliance@marketleverage.com. We look forward to continuing to work with you in the future.

Sincerely,
The MarketLeverage Compliance Department

Market Leverage's New Testimonial and Endorsement (prah) Policy:

• Honesty. Endorsements in Promotional Materials must reflect the honest opinions, findings, beliefs, or experience of the endorser. Furthermore, endorsements in Promotional Materials may not contain any representations that would be deceptive, or could not be substantiated, if made directly by the Advertiser. Upon request from MarketLeverage, You must be able to verify all claims stated on any Promotional Materials by providing documentation to back up Your claims within three (3) business days.
• Endorsements by Consumers. An endorsement on a central or key attribute of a product or service will be interpreted as representing that the endorser’s experience is representative of what consumers will generally achieve. Accordingly, if an endorsement does not have adequate substantiation that the endorser’s experience is representative, You must clearly and conspicuously disclose either what the generally expected performance would be in the depicted circumstances or the limited applicability of the endorser’s experience to what consumers may generally expect to achieve. Finally, all endorsements from consumers must be real. Upon request from MarketLeverage, You must provide personally identifiable documentation of any consumer depicted in Your Promotional Materials, including, but not limited to, first name, last name, physical address and driver’s license or other government issued identification.
• Endorsements by Experts. For purposes of this Testimonial & Endorsement Policy, an "expert endorser" is someone who, as a result of experience, study or training possesses knowledge of a particular subject that is superior to that generally acquired by ordinary individuals. Accordingly, to use an expert endorsement in Promotional Materials, an expert endorser’s qualifications must, in fact, give him or her, the expertise that he or she is represented as possessing with respect to the endorsement. Moreover, an expert endorsement must be supported by an actual exercise of expertise and the expert’s evaluation of the product or service must have been at least as extensive as someone with the same degree of expertise would normally need to conduct in order to support the conclusions presented. Upon request from MarketLeverage, You must provide documentation within three (3) business days to substantiate any endorsements made by experts appearing in your Promotional Materials.
• Endorsements by Organizations. An organization’s endorsement must be reached by a process sufficient to ensure that the endorsement fairly reflects the collective judgment of the organization. Upon request from MarketLeverage, You must provide documentation within three (3) business days to substantiate any endorsements made by organizations.
• Disclosure of Material Connections. When there is a connection between the endorser and the seller of the advertised product that might materially affect the weight and credibility of the endorsement (i.e., the connection is not reasonably expected by the audience), such connection must be clearly and conspicuously disclosed in the Promotional Materials. Consumers are generally expecting independent advice. Accordingly, to the extent an economic motive exists for an endorsement of a product or service, the consumer should be aware of this economic motive.
• Actual Consumers and Actors. Promotional Materials presenting endorsements by what are represented as actual consumers should utilize actual consumers, or clearly and conspicuously disclose that the persons are not actual consumers. Upon request from MarketLeverage, You must provide personally identifiable documentation of any consumer depicted in Your Promotional Materials, including, but not limited to, first name, last name, physical address and driver’s license or other government issued identification.
• FTC Compliance. All Promotional Materials containing endorsements or testimonials must comply with all aspects of the Federal Trade Commissions Guides Concerning the Use of Testimonials and Testimonials in Advertising, as amended (16 C.F.R. Part 255).

If you're running review-style sites, the times are changing. Make sure your butt is covered because I'm sure disclaimers like this will be arriving soon from many networks.

[Kezz]

I think it was really only a matter of time until requirements like this started coming into force, and also just a matter of time until they are widespread.

It all comes back to the same thing really. Don't try to figure out how to appear to offer quality information, just actually offer quality information.

Offer value, true service, and legitimate information, and you are building you business on a solid foundation. Otherwise, you're building on sand and just hoping it doesn't get swept away from under you.

Plus, it's not so hard to create your own real review sites anyway. Here's a new angle, just review things you own! Everybody owns things, and there's an affiliate program out there for just about anything you can buy. So if you want to run a review site, just look around the house and around your hard drive, and there's your subject matter right there.

[katiec]

I'm not as surprised as some might be. As Kezz said, it was only a matter of a time until stipulations were put into play.

[Catalyst eMarketing]

MarketLeverage is a 5 Star Affiliate client and I applaud them for taking the high road and being proactive about this.

It's the guys that have been abusing the system and marketing without integrity that have ruined it for the honest marketers. If we had been able to self regulate and reign in some of the dishonest marketing out there, the government would not have to get involved at all.

[Kezz]

Oh and here's another reason to run a proper review site.

Once you build up enough traffic, people will start to give you things for free! For example, a friend of mine ran a PC review site and never had to pay for his own PC parts for about the entire lifespan of the site. He always had the latest top of the line gear, because he was continually getting sent equipment to review. Thousands of dollars of gear free.

I can really pay off in more ways than just commission.