What are the FTC rules in plain english?

Sumit Menon · 10-12-2009, 12:13 AM

I read a lot of it on the internet. But, I'm still vague on the idea.

Kindly answer these questions:

1) What are the stuff I'm not supposed to do?
2) What is it that I should do?
3) I live in India. Does it affect me?

Thank You,
Sumit.

P.Sharma · 10-13-2009, 03:15 AM

I would love to know the answer too

TelegramSam · 10-13-2009, 04:16 AM

Look on the other threads about this FTC situation.

There is a lot of info there.

Basically, there is no "plain English" on this matter.

It is legal talk, that allows them to twist the meaning of the words if they think you have been a naughty boy or if they want to come after you for any reason.

Advice: Have a great product, but don't over hype it.

Better advice: If you are serious about this business, then take the time and trouble to FULLY understand the FTC guidelines. There is NO other "quick" solution or shortcut.

Sam

Alexa Smith · 10-13-2009, 04:37 AM

Quote:

Originally Posted by Sumit_Menon

1) What are the stuff I'm not supposed to do?

Nobody can answer this definitively, because it's too new, and we haven't yet had a chance to see how it's interpreted and enforced.

Quote:

Originally Posted by Sumit_Menon

2) What is it that I should do?

Market honestly. Avoid trying to deceive people.

Quote:

Originally Posted by Sumit_Menon

3) I live in India. Does it affect me?

Probably not very much. Unless you have obviously deceptive sites hosted on servers in the US and travel to the US yourself, it seems likely that the worst that can happen is that a host might refuse to host your sites because of their concern about their own potential liability for them.

sahi · 10-13-2009, 04:47 AM

Please someone correct me if I'm wrong but the following is what i understood so far about this FTC ruling, and I've written it according to your questions:

1-Try to avoid using testimonials from customers who are saying that they got a result from your product's use, because typical results and/or average results can vary for different people. So try to avoid such "claiming results" testimonials.

2-Try to use testimonials that just give a plain review of your product, and doesn't claim any "average" or "typical" result by using that product. If at all possible try to avoid testimonials, and if not possible then just use review like testimonials.

3-No, unless your sites are hosted in US and/or you are doing business there.

JayXtreme · 10-13-2009, 04:50 AM

It's probably not that good for the forum to have 10 threads on this same subject.. methinks..

In any case, @TheOP.. Alexa gave you some good advice..

Also...

Until this thing is played out in court, nobody will know for sure. These "laws" aren't new, but it does seem that the FTC is going to take a different stance when enforcing them. Hence the need for a case to be brought... a new stance could mean a whole lot of things but doesn't actually mean anything until it happens...

For now, anyone with sites/living in the U.S. needs to play safe and kind with their stuff.

Peace

Jay

St Croix · 10-13-2009, 05:14 AM

What are the FTC gonna do if you're in New Zealand or something? Extradite you to the US for providing a bogus review on an affiliate product?

MakeMoneyTutor · 10-13-2009, 05:24 AM

Bro, GO on FTC Official Website and read the updates from them and don't worry you will not affect anything because you live in India.

Sumit Menon · 10-13-2009, 05:50 AM

Quote:

Originally Posted by Alexa Smith

Nobody can answer this definitively, because it's too new, and we haven't yet had a chance to see how it's interpreted and enforced.

Market honestly. Avoid trying to deceive people.

Probably not very much. Unless you have obviously deceptive sites hosted on servers in the US and travel to the US yourself, it seems likely that the worst that can happen is that a host might refuse to host your sites because of their concern about their own potential liability for them.

Thanks.. Just what I wanted to know!

Quote:

Originally Posted by JayXtreme

It's probably not that good for the forum to have 10 threads on this same subject.. methinks..

In any case, @TheOP.. Alexa gave you some good advice..

Also...

Until this thing is played out in court, nobody will know for sure. These "laws" aren't new, but it does seem that the FTC is going to take a different stance when enforcing them. Hence the need for a case to be brought... a new stance could mean a whole lot of things but doesn't actually mean anything until it happens...

For now, anyone with sites/living in the U.S. needs to play safe and kind with their stuff.

Peace

Jay

Sorry. I think so too.. But, I really wanted to know! I read the official FTC guide but didn't understand much. I'm 16. I don't understand legal english!

Alexa Smith · 10-13-2009, 05:58 AM

Quote:

Originally Posted by Sumit_Menon

I don't understand legal english!

Neither do English-speaking lawyers, half the time: they just do a good bluff and know how to give advice often without really being responsible for it, if it turns out they didn't quite get it right.

Mike Hersh · 10-13-2009, 05:59 AM

I don't see any reason to get hurt if I'm honest marketing with true testimonials.

If everything is legit on your site, I don't see any reason for something to happen.

Sumit Menon · 10-13-2009, 06:01 AM

Quote:

Originally Posted by Alexa Smith

Neither do English-speaking lawyers, half the time: they just do a good bluff and know how to give advice often without really being responsible for it, if it turns out they didn't quite get it right.

lol.. Maybe that's what they teach 'em in the law school!

seasoned · 10-13-2009, 06:13 AM

Quote:

Originally Posted by Sumit_Menon

I read a lot of it on the internet. But, I'm still vague on the idea.

Kindly answer these questions:

1) What are the stuff I'm not supposed to do?
2) What is it that I should do?
3) I live in India. Does it affect me?

Thank You,
Sumit.

Don't lie. Tell the truth. Don't imply something that is not NORMAL, Don't Steal. Don't encourage something that is illegal. Don't collect private information that is not required to do the task and, if you DO aggregate other data, state that you do so. Don't harass.

You may live in India, but these laws are pretty general, and you probably deal with people/companies in America. So YEAH, it affects you EVEN if it simply hurts your reputation, and may cause you to lose support and JVs.

Steve

sbucciarel · 10-13-2009, 06:26 AM

For those overseas who use Ad Networks that are based in the US, it will affect you because the Ad Networks will be subject to the same rules and responsible for their affiliates.

The Rules are basically:
Don't lie
Don't make outlandish, unsubstantiated claims
Don't use fake testimonials

If you are endorsing a product for gain, you have to disclose the fact that you are paid for endorsing it for monetary gain.

If you say you can make a million dollars in 1 day using this product, you have to tell us what the typical results would be, unless you can prove definitively that everyone who buys your product has made a million dollars in 1 day.

St Croix · 10-13-2009, 06:48 AM

I have a law degree - and contrary to popular belief Lawyers don't have it all sewn up. BUT - post some of the FTC stuff here and I'll do my best to put it into layman's terms for you if you like.

PS. Alexa - you are far too stunning, you should be in a model catalog and make commissions off the sheer amount of views :P

Sumit Menon · 10-13-2009, 07:13 AM

Quote:

Originally Posted by sbucciarel

If you say you can make a million dollars in 1 day using this product, you have to tell us what the typical results would be, unless you can prove definitively that everyone who buys your product has made a million dollars in 1 day.

That's stupid! Everyone can't make a million!
So this means you can never say it?

Sumit Menon · 10-13-2009, 07:15 AM

Quote:

Originally Posted by St Croix

I have a law degree - and contrary to popular belief Lawyers don't have it all sewn up. BUT - post some of the FTC stuff here and I'll do my best to put it into layman's terms for you if you like.

PS. Alexa - you are far too stunning, you should be in a model catalog and make commissions off the sheer amount of views :P

One of my friends says you have to disclose certain facts (like you are making money from the promotion and stuff).

How should we define "disclose"?

seasoned · 10-13-2009, 08:04 AM

Quote:

Originally Posted by Sumit Menon

That's stupid! Everyone can't make a million!
So this means you can never say it?

This is why I said "Don't imply something that is not NORMAL,". You CAN have a disclaimer(stating that it is possible, but NOT the norm.), but you should make it somewhat obvious, etc...

Steve

sbucciarel · 10-13-2009, 09:54 AM

Quote:

Originally Posted by Sumit Menon

That's stupid! Everyone can't make a million!
So this means you can never say it?

If you DO say it, you have to tell the readers what the TYPICAL results are. Pretty tough to do, I imagine, if not impossible, so I would definitely be avoiding the most likely false, deceptive claims like that.

sbucciarel · 10-13-2009, 09:57 AM

Quote:

Originally Posted by Sumit Menon

One of my friends says you have to disclose certain facts (like you are making money from the promotion and stuff).

How should we define "disclose"?

Disclose means exactly that. Tell people you are paid to endorse a product if you are being paid to endorse the product.

JD Nunes · 10-13-2009, 09:59 AM

Here's an official link: FTC Publishes Final Guides Governing Endorsements, Testimonials

Caragui · 10-13-2009, 08:04 PM

Quote:

Originally Posted by nuneybopper

Here's an official link: FTC Publishes Final Guides Governing Endorsements, Testimonials

Thanks for the link. Trying to make sense of it right now

Off the bat, it seems to refer only to testimonials but since many marketers rely on testimonials to "swing" their readers it will definitely affect existing marketing techniques.

Here's also a link to Guides to Using Endorsement and Testimonials from the FTC.

St Croix · 10-13-2009, 08:19 PM

Yes, disclosing in this instance simply means that you must make information readily available to the reader that states what your relationship is with the product vendor. If you receive donated products to test (such as Gizmodo does etc.) then you must disclose that to the reader. If you earn a commission from sales of the product you are endorsing/reviewing, you must clearly state this.

Now the part that we will have to wait for to become precedent, is where this disclosure has to be in relation to the product mention. The FTC reforms are too loosely written to give us a clear indication of this right now, hence the need for a precedent to be set.

Can we simply add a line like this into our Terms Of Use: "Many of the products reviewed on this web site are promoted on behalf of third party vendors and the owners of this web site do earn commissions on sales referred from this site."

Who really reads the TOS? This would be the best outcome in my opinion. What worries me is that the FTC might come down on folks who make use of this complience tactic and the worst case scenario could be that the disclosure is enforced within the review/reccomendation itself.

ie. "In summary, I highly recommend you use this skirting ladder for getting to those hard to reach places when doing minor repairs on your wall skirtings. Click Here for more information. (The preceding link is an affiliate link that will refer you to the vendors website, if you are to purchase this item I will receive a commission from the sale)."

Lame - but we may have to do it, only time and litigation will tell.

Cheers

10-12-2009, 12:13 AM	#1
Sumit Menon . Join Date: Aug 2008 Location: Mumbai, India Posts: 657 Thanks: 552 Thanked 246 Times in 153 Posts Social Networking Contact Info	What are the FTC rules in plain english? I read a lot of it on the internet. But, I'm still vague on the idea. Kindly answer these questions: 1) What are the stuff I'm not supposed to do? 2) What is it that I should do? 3) I live in India. Does it affect me? Thank You, Sumit.
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10-13-2009, 03:15 AM	#2
P.Sharma www.WSOTube.com War Room Member Join Date: Jun 2008 Posts: 974 Thanks: 174 Thanked 266 Times in 111 Posts Contact Info	Re: What are the FTC rules in plain english? I would love to know the answer too
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10-13-2009, 04:16 AM	#3
TelegramSam Battle Hardened Warrior Join Date: Apr 2009 Location: USA/UK Posts: 690 Thanks: 44 Thanked 166 Times in 89 Posts	Re: What are the FTC rules in plain english? Look on the other threads about this FTC situation. There is a lot of info there. Basically, there is no "plain English" on this matter. It is legal talk, that allows them to twist the meaning of the words if they think you have been a naughty boy or if they want to come after you for any reason. Advice: Have a great product, but don't over hype it. Better advice: If you are serious about this business, then take the time and trouble to FULLY understand the FTC guidelines. There is NO other "quick" solution or shortcut. Sam

10-13-2009, 04:47 AM	#5
sahi HyperActive Warrior War Room Member Join Date: Oct 2008 Location: PK Posts: 243 Thanks: 19 Thanked 29 Times in 25 Posts Contact Info	Re: What are the FTC rules in plain english? Please someone correct me if I'm wrong but the following is what i understood so far about this FTC ruling, and I've written it according to your questions: 1-Try to avoid using testimonials from customers who are saying that they got a result from your product's use, because typical results and/or average results can vary for different people. So try to avoid such "claiming results" testimonials. 2-Try to use testimonials that just give a plain review of your product, and doesn't claim any "average" or "typical" result by using that product. If at all possible try to avoid testimonials, and if not possible then just use review like testimonials. 3-No, unless your sites are hosted in US and/or you are doing business there.

10-13-2009, 04:50 AM	#6
JayXtreme Lookin at You.... War Room Member Join Date: May 2008 Location: Out Of My Mind - Brandy Too Posts: 4,120 Blog Entries: 3 Thanks: 2,885 Thanked 1,344 Times in 710 Posts Social Networking	Re: What are the FTC rules in plain english? It's probably not that good for the forum to have 10 threads on this same subject.. methinks.. In any case, @TheOP.. Alexa gave you some good advice.. Also... Until this thing is played out in court, nobody will know for sure. These "laws" aren't new, but it does seem that the FTC is going to take a different stance when enforcing them. Hence the need for a case to be brought... a new stance could mean a whole lot of things but doesn't actually mean anything until it happens... For now, anyone with sites/living in the U.S. needs to play safe and kind with their stuff. Peace Jay
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10-13-2009, 05:14 AM	#7
St Croix Internet Junkie War Room Member Join Date: Jun 2009 Location: Australia Posts: 80 Thanks: 19 Thanked 20 Times in 12 Posts Contact Info	Re: What are the FTC rules in plain english? What are the FTC gonna do if you're in New Zealand or something? Extradite you to the US for providing a bogus review on an affiliate product?

10-13-2009, 05:24 AM	#8
MakeMoneyTutor Make Money Online Tutor Join Date: Jun 2009 Location: Internet Posts: 37 Thanks: 0 Thanked 2 Times in 2 Posts Social Networking Contact Info	Re: What are the FTC rules in plain english? Bro, GO on FTC Official Website and read the updates from them and don't worry you will not affect anything because you live in India.
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10-13-2009, 05:59 AM	#11
Mike Hersh Copywriter War Room Member Join Date: Jan 2009 Location: The Dark Basement Posts: 553 Thanks: 10 Thanked 56 Times in 39 Posts	Re: What are the FTC rules in plain english? I don't see any reason to get hurt if I'm honest marketing with true testimonials. If everything is legit on your site, I don't see any reason for something to happen.
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10-13-2009, 06:26 AM	#14
sbucciarel Suzanne War Room Member Join Date: Jan 2007 Location: Virginia, USA. Posts: 10,644 Blog Entries: 1 Thanks: 1,211 Thanked 4,048 Times in 2,261 Posts	Re: What are the FTC rules in plain english? For those overseas who use Ad Networks that are based in the US, it will affect you because the Ad Networks will be subject to the same rules and responsible for their affiliates. The Rules are basically: Don't lie Don't make outlandish, unsubstantiated claims Don't use fake testimonials If you are endorsing a product for gain, you have to disclose the fact that you are paid for endorsing it for monetary gain. If you say you can make a million dollars in 1 day using this product, you have to tell us what the typical results would be, unless you can prove definitively that everyone who buys your product has made a million dollars in 1 day.
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10-13-2009, 06:48 AM	#15
St Croix Internet Junkie War Room Member Join Date: Jun 2009 Location: Australia Posts: 80 Thanks: 19 Thanked 20 Times in 12 Posts Contact Info	Re: What are the FTC rules in plain english? I have a law degree - and contrary to popular belief Lawyers don't have it all sewn up. BUT - post some of the FTC stuff here and I'll do my best to put it into layman's terms for you if you like. PS. Alexa - you are far too stunning, you should be in a model catalog and make commissions off the sheer amount of views :P

10-13-2009, 09:59 AM	#21
JD Nunes J.D. Nunes War Room Member Join Date: Sep 2007 Location: Planet Earth, usually Posts: 430 Thanks: 5 Thanked 21 Times in 15 Posts	Re: What are the FTC rules in plain english? Here's an official link: FTC Publishes Final Guides Governing Endorsements, Testimonials
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10-13-2009, 08:19 PM	#23
St Croix Internet Junkie War Room Member Join Date: Jun 2009 Location: Australia Posts: 80 Thanks: 19 Thanked 20 Times in 12 Posts Contact Info	Re: What are the FTC rules in plain english? Yes, disclosing in this instance simply means that you must make information readily available to the reader that states what your relationship is with the product vendor. If you receive donated products to test (such as Gizmodo does etc.) then you must disclose that to the reader. If you earn a commission from sales of the product you are endorsing/reviewing, you must clearly state this. Now the part that we will have to wait for to become precedent, is where this disclosure has to be in relation to the product mention. The FTC reforms are too loosely written to give us a clear indication of this right now, hence the need for a precedent to be set. Can we simply add a line like this into our Terms Of Use: "Many of the products reviewed on this web site are promoted on behalf of third party vendors and the owners of this web site do earn commissions on sales referred from this site." Who really reads the TOS? This would be the best outcome in my opinion. What worries me is that the FTC might come down on folks who make use of this complience tactic and the worst case scenario could be that the disclosure is enforced within the review/reccomendation itself. ie. "In summary, I highly recommend you use this skirting ladder for getting to those hard to reach places when doing minor repairs on your wall skirtings. Click Here for more information. (The preceding link is an affiliate link that will refer you to the vendors website, if you are to purchase this item I will receive a commission from the sale)." Lame - but we may have to do it, only time and litigation will tell. Cheers
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