Will FTC Regulations Affect Ads?

[Dan C. Rinnert]

Will the new FTC regulations affect ads you run on your site?

For example, will you need to post a notice that, if people click on the Google AdSense ads, you make money?

What about ClickBank ads? It just displays products based on a keyword(s) you select. Will you need to post a notice that you make money if someone makes a purchase from one of those ads? Are you responsible for the claims made in those ads, which you don't actually write or have control over?

[Trader54]

Leave to the government to make everything so vague. That way they don't have to do any work, just make a list and point and say lets nail that guy.

[Kay King]

Loads of speculation on this but whatever it is we'll learn to live with it.
According to a spokesperson for the FTC the focus at first will be on product creators so they will add a disclaimer that must be used by their affiliates.

I'm not surprised by this move by the FTC. Disclaimers are required for ads in other venues - why not for online ads?

This is about disclosure, isn't it? If you are posting reviews or raving about a product in your blog and including an affiliate link - you'll have to include a line disclosing that you are associated with the product. We don't know yet what terminology will be required.

In the end it may be like other govt warnings and be a small line of text at the bottom of the page - we don't know yet. But we do have some long threads about the topic.


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kay

[Dan C. Rinnert]

Originally Posted by Kay King

According to a spokesperson for the FTC the focus at first will be on product creators so they will add a disclaimer that must be used by their affiliates.

In that case, we'll have to watch what ClickBank does. I imagine they might add a section or field where the product creator can add the necessary disclaimers.

I'm not surprised by this move by the FTC. Disclaimers are required for ads in other venues - why not for online ads?

I don't think disclaimers are an issue. We've had those. It's the vagueness.

For one thing, how will people, especially small product creators, establish "typical" results that can be expected from a product? It's one thing to restrict false claims, which I think were already prohibited or illegal, but it's another to try to figure out "typical" results.

I mean, I may have a step-by-step system I followed to make, say, $10k in a month. Let's say that it is 100% factual that I used those steps and I made $10k in a month. If it's true, I am not making a false claim or misleading you. But, how can I figure out the typical results that you might have as a user of the product? Maybe you'll just apply the program in a haphazard way and make nothing. Or, maybe you'll go step-by-step but you only make $100 because your niche is different. Maybe you'll have a better niche and make $25k. How does that all get sorted out?

The way I see it, if I'm selling a system for how I made $10k in a month, and it is 100% true that I used that system to make $10k in a month, that's truth in advertising. Your results may vary. That's truthful too.

And, that's entirely different from someone who is using fake screenshots to "prove" the system works when, in fact, it does not.

This is about disclosure, isn't it? If you are posting reviews or raving about a product in your blog and including an affiliate link - you'll have to include a line disclosing that you are associated with the product. We don't know yet what terminology will be required.

What if you just mention an affiliate product and have a link to it? You're not necessarily endorsing or recommending it, only pointing out that it is available.

And that goes back to the original questions: What about ads? Like those ClickBank ads. You're not reviewing the products or writing about them at all; you're just displaying the ads.

In the end it may be like other govt warnings and be a small line of text at the bottom of the page - we don't know yet. But we do have some long threads about the topic.

I've been following the other threads. I just haven't seen anything specific to things like Google AdSense, ClickBank HopLink Ads, etc.

As another example, what if you sell advertising space on your blog? If you have available spaces, rather than leave them empty, what it you put up banners for affiliate banners?

[bobsedge]

This doesn't affect ads. What this addresses are statements that appear to be unmotivated but really are. Ads are for the obvious purpose of selling. Sales letters are for the obvious purpose of selling.

But testimonials within sales letters are a different story. If the person making the testimonial is an affiliate or if you can profit in any way from that person, it better be stated in the testimonial or somewhere prominent in the sales letter.

Also, if a claim is being made in the sales letter or testimonial, you need to either state that the claim made is the expected result or if its not the expected result, what is.

With review sites, if affiliate links are being used, you need to state that you will make money if they purchase through that link.

[Bill Farnham]

Dan,

One of the things to keep in mind is that the FTC is looking to put some teeth in its' regulations to be able to go after egregious offenders where the old regs didn't address the new problems the internet created.

Most small scale marketers will never feel the wrath of the FTC, but if you have a large presence on the net you will need to adjust your tatics ASAP. The rest of the crowd can take a little longer to meet compliance.

I'm not saying if you're a little guy you can ignore the new regs, only that you shouldn't feel like this is the end of the world. Just start adapting.

If you're creating new blogs, review pages, etc, incorporate the changes now.

And you guessed it, this is not legal advice, just an opinion.

KJ

Btw, Dan, I thought your WR ad was the best I'd seen so far

[Dan C. Rinnert]

Originally Posted by Killer Joe

Most small scale marketers will never feel the wrath of the FTC, but if you have a large presence on the net you will need to adjust your tatics ASAP. The rest of the crowd can take a little longer to meet compliance.

I'm not saying if you're a little guy you can ignore the new regs, only that you shouldn't feel like this is the end of the world. Just start adapting.

I just want to make sure I'm in compliance. You know, I don't want to be an "example" case. And, you always have to be wary of politically motivated nitpicking.

I don't go around making outlandish claims or fake screenshots, etc.; it just feels like now I have an additional burden because of those that do. And, they'll probably keep on doing what they're doing...

Btw, Dan, I thought your WR ad was the best I'd seen so far

Thanks. I'll be happy if it makes it into the Top 3.

[darrin_cooper]

Dan,

In your model, Google Adsense ads are fully disclosed already. When a person clicks on a Google Ad, they know what it is clearly. Why? Becuase it states" Ads By Google.

The whole concept of the FTC is claims, statements made via a product or service promoted by a product owner or marketer.

Also, overall, this is usually about companies that market products, offline or even online that are pushing to mass audiences of people. I'm talking about companies that can throw away $40,000 a month in ad spend and not blink an eye.

However, smaller companies should comply either way. whereas, if you get a complaint, you don't want to be on the wrong side of the law.

[pstacks]

I have a sneaking suspicion it's to crack down on all of the Oprah & Rachel Ray 'endorsed' Acai Berry promotions. It's not as bad as everyone is making it out to be.