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Old 10-13-2009, 10:27 AM   #1
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Default FTC Guidelines for Product Creators and Their Affiliates

I just thought of something extremely important. Due to the new FTC guidelines - which can be viewed here: FTC Publishes Final Guides Governing Endorsements, Testimonials - product creators (including resell rights owners with affiliates) have an elusive dilemma on their hands.

It would seem that we are now required to tell our affiliates to DISCLOSE the fact that they are being compensated for their endorsement. This normally wouldn't be too much of a hassle, save for the issue that we could be the ones liable if they do not comply - and especially if they go out and cause chaos (I'm sure you can imagine the scenarios here).

On top of this, we also need to ensure that affiliates do not put forth "misleading" information, such as "product creator makes a million in 3 days, now you can too!"

What baffles me overall is this: How will these guidelines be enforced - or even ascertained on a case-by-case basis as they have claimed - through all the different marketing mediums? I know the emphasis is on blogs, but if you put up a banner ad, or have an affiliate write an article or send an email, or anything else...it's all just too vague to act on with confidence.

Perhaps even more crucial is the consideration of how are you going to keep tabs on your sales force? I don't think it's even possible to pull off something like that. Let's just hope that the product creator isn't liable for content that isn't owned by them or there will be nothing short of a pandemic.

And what about existing web pages? Surely they don't expect the entire Internet to suddenly change, and make bank on those who aren't yet aware or haven't evolved with the times.

I even heard that the $11,000 fine can be imposed for each instance, and thus, each VISITOR to your web site. I don't believe this to be the case, but who knows what could happen. No one wants to be on the receiving end of such harsh regulation, so if you have insights on this matter, please share.

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Old 10-13-2009, 01:47 PM   #2
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

Hi nuneybopper,

Here are 2 important articles to read that answer most of your questions about advertisers being held accountable, what you should do and how enforcement will be handled. Also the FTC says they will not be issuing fines (but I think they still could if they want to.)

FTC Responds to Blogger Fears: “That $11,000 Fine Is Not True”
In one part they talk about enforcement and in another the fact that they are going after advertisers more than bloggers/marketers.

New FTC Rules for Testimonials and Endorsements in Marketing

Joel Comm's attorney weigh in on his interpretation and makes suggestions for affiliates and merchants/product owners.

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Old 10-13-2009, 01:49 PM   #3
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

Quote:
Originally Posted by nuneybopper View Post
It would seem that we are now required to tell our affiliates to DISCLOSE the fact that they are being compensated for their endorsement. This normally wouldn't be too much of a hassle, save for the issue that we could be the ones liable if they do not comply - and especially if they go out and cause chaos (I'm sure you can imagine the scenarios here).
This could be a big hassle for the affiliates. I have several blogs with hundreds of posts containing affiliate links. Would I be required to add the disclusure to every single post?

And I assume this also applies to Adsense?

Would like to know what everyone is doing about this.
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Old 10-13-2009, 02:05 PM   #4
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

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Originally Posted by aidenw11 View Post
This could be a big hassle for the affiliates. I have several blogs with hundreds of posts containing affiliate links. Would I be required to add the disclusure to every single post?
In the fast company article the FTC rep says:

Quote:
"There is some vagueness....The bloggers have to look at how they do their blogging, their business practice, and figure out the way that consumers will best get the message that this is a sponsored post. In terms of clear and conspicuous, the criteria there is that the consumers will notice the disclosure. Disclosures can be made in different ways, whether you make it outside of the text but in proximity to blog, or incorporate it into the blog discussion itself--those are the issues that bloggers will have discretion about."
I am NOT an attorney (and you should check with one if you have concerns) but I would think a link to a disclosure page on each blog post would suffice. This could easily be done on Wordpress blogs by adding the disclosure policy link to the bottom of your single post template. That would put it at the bottom of every blog post.

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Old 10-13-2009, 02:14 PM   #5
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

Hi Warriors!

I agree with 5star, I think a link to a disclosure page will be alright. In fact I just recently bumped into a blog of an internet marketer who's done just that. So I guess it will work out fine.

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Old 10-13-2009, 02:26 PM   #6
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

Omar please be careful about how you state your opinion about the FTC ruling. It would really help if you let folks know that is your opinion only and not a fact. There may be folks here that take your statement as gospel.

But the only way for them to truly know what is right or wrong is to consult an Internet lawyer versed in Internet law and FTC rules and regulations.

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Old 10-14-2009, 09:05 AM   #7
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

Here's a very informative report I found, which does contain quite alarming information many may not be aware of: FTC New Compensation Disclosure Requirements: Free Internet Marketing Special Report : Internet Law and Business Blog

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Old 10-14-2009, 09:58 AM   #8
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

Quote:
Originally Posted by nuneybopper View Post

On top of this, we also need to ensure that affiliates do not put forth "misleading" information, such as "product creator makes a million in 3 days, now you can too!"
I've already remedied this. On the front of all my products is a picture of me in my cardboard box house. That makes it very difficult for my affiliates to inflate claims much.

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Old 10-14-2009, 10:10 AM   #9
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

You know, at this time I have 0 love for the US government and if the FTC isn't going to give out fines then my take on it is "who cares!" I mean I am sick of someone trying to control how I make an honest living. If my ways aren't deceptive then leave me alone! This includes the great Uncle Sam who is thinking they need to control every aspect of our lives here in America.

This country was started to get away from control! It was started because people wanted to be free. Now look at us! You can't even have a legit business without our b.s. government looking over your shoulder and threatening you! I am so frickin sick of it!

I do not give a rats *** about the FTC! They suck and are not really even for the consumer! If I need to move out of this country just to have an online business whether it be as an affiliate or a merchant, then so be it, but I will not be controlled by this communistic government anymore!

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Old 10-14-2009, 12:36 PM   #10
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

Here are the opinions from 2 more attorneys on what merchants and product owners need to do to protect themselves.

Quote:
PDF: FTC Guidelines Analysis
http://www.performancemarketingallia...owles-Cohn.pdf


"An analysis of the recent FTC guidelines was published by Jeffrey Knowles and Thomas Cohen, two attorneys with expertise in advertising. As a matter of fact, Tom used to work for the FTC. This paper, which you can find here, gives a concise analysis of the rulings, and includes specific details important for affiliates."

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Old 10-14-2009, 03:20 PM   #11
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

Well said, Steve...although I'm sure they could think of a loophole to still mess with you no matter where you live. For example, since with an Internet business you are most likely doing business with citizens in the USA, you could still be "subject to" regulations. But as long as you don't stick out too much, regardless of how on par you are with their version of ethics, you should be fine. They like to make examples of a select few who fit their profile, in order to generate publicity, among other things. Fortunately for us (Internet marketers), even those who make 7 or 8 figures a year probably won't even get on their radar.

Thanks for the resources, Linda.

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Old 10-14-2009, 04:20 PM   #12
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

So if you are selling a product on Clickbank and say an affiliate makes ridiculous claims about your products and gets caught, what are the consequences here? I mean as a merchant how can you control affiliates signing up on Clickbank. I would be interested in knowing what needs to be done.
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Old 10-14-2009, 05:45 PM   #13
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

5 StarAffiliate, thank you for posting Joel Comm's website with his attorneys assesment of the new FTC rules. It was extremely helpful. I have also downloaded and bookmarked the official FTC regulations link your attorney posted.

I personally have been practicing full disclosure principles in my advertising and videos. As for endorsements, I don't use them, because they all sound the same to me and take up too much of my valuable time to read, I just scroll right past them. I think there is too much information overload in advertising, particularly in email. I suspect that more and more potential customers are doing the same.

I do think that full disclosure, and transperancy will be well received by our subscribers, and is a golden opportunity to take the lead in a new paradigm of marketing. The FTC may have just done us a favor. We'll see how it turns out.

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Old 10-14-2009, 06:35 PM   #14
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

So does someone have a system in place to ask affiliates to sign up before allowing them to market your product. If you are a Clickbank merchant, what are the options?
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Old 10-14-2009, 08:06 PM   #15
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

There are tons of ways that many are doing that (requiring affiliates to sign up before promoting). Simply don't have your affiliate resources page link available publicly. Instead, have an autoresponder signup form which redirects to it. That way, you can disseminate the information automatically via email, and on your site too, obviously.

I understand what you mean if people find your product in the ClickBank marketplace and generate a hoplink that way - but I know many product launches (such as Commission Blueprint 2.0) had private JV partners who had to prove themselves before even being able to promote the product, and if an "outsider" promoted it and made sales, they wouldn't have even qualified for commissions. I don't know what technology they used though.

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Old 10-14-2009, 08:12 PM   #16
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

Quote:
Originally Posted by nuneybopper View Post
There are tons of ways that many are doing that (requiring affiliates to sign up before promoting). Simply don't have your affiliate resources page link available publicly. Instead, have an autoresponder signup form which redirects to it. That way, you can disseminate the information automatically via email, and on your site too, obviously.

I understand what you mean if people find your product in the ClickBank marketplace and generate a hoplink that way - but I know many product launches (such as Commission Blueprint 2.0) had private JV partners who had to prove themselves before even being able to promote the product, and if an "outsider" promoted it and made sales, they wouldn't have even qualified for commissions. I don't know what technology they used though.
Thank you. This is very useful. But if you find any information on how to do a Commission Blueprint style restrictive access, please let me know.
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Old 10-14-2009, 08:56 PM   #17
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

Quote:
Originally Posted by nuneybopper View Post
Well said, Steve...although I'm sure they could think of a loophole to still mess with you no matter where you live. For example, since with an Internet business you are most likely doing business with citizens in the USA, you could still be "subject to" regulations. But as long as you don't stick out too much, regardless of how on par you are with their version of ethics, you should be fine. They like to make examples of a select few who fit their profile, in order to generate publicity, among other things. Fortunately for us (Internet marketers), even those who make 7 or 8 figures a year probably won't even get on their radar.

Thanks for the resources, Linda.
I fully agree! Thats why I say P*** on them! I WILL NOT let a government control my business and my life. This isn't the Soviet Union, although it seems like it is becoming more and more like it. If more people would stand up and come against a lot of this crap that the government is pulling, I think we could have some change. It would take a lot of people though, and I think most are either too scared of Uncle Sam, or just don't care about anything but themselves until it is too late...When things start to affect them. Or they think Obama is going to still be an awesome guy for this country...I'll stop my rant...sorry.

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Old 10-14-2009, 11:16 PM   #18
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

Quote:
Originally Posted by nuneybopper View Post
I just thought of something extremely important. Due to the new FTC guidelines - which can be viewed here: FTC Publishes Final Guides Governing Endorsements, Testimonials - product creators (including resell rights owners with affiliates) have an elusive dilemma on their hands.

It would seem that we are now required to tell our affiliates to DISCLOSE the fact that they are being compensated for their endorsement. This normally wouldn't be too much of a hassle, save for the issue that we could be the ones liable if they do not comply - and especially if they go out and cause chaos (I'm sure you can imagine the scenarios here).

On top of this, we also need to ensure that affiliates do not put forth "misleading" information, such as "product creator makes a million in 3 days, now you can too!"

What baffles me overall is this: How will these guidelines be enforced - or even ascertained on a case-by-case basis as they have claimed - through all the different marketing mediums? I know the emphasis is on blogs, but if you put up a banner ad, or have an affiliate write an article or send an email, or anything else...it's all just too vague to act on with confidence.

Perhaps even more crucial is the consideration of how are you going to keep tabs on your sales force? I don't think it's even possible to pull off something like that. Let's just hope that the product creator isn't liable for content that isn't owned by them or there will be nothing short of a pandemic.

And what about existing web pages? Surely they don't expect the entire Internet to suddenly change, and make bank on those who aren't yet aware or haven't evolved with the times.

I even heard that the $11,000 fine can be imposed for each instance, and thus, each VISITOR to your web site. I don't believe this to be the case, but who knows what could happen. No one wants to be on the receiving end of such harsh regulation, so if you have insights on this matter, please share.


This is one of the BIG reasons why it's somewhat hard to get accepted in the CPA networks as an affiliate. They want to make sure your on the up and up and don't cause any ****.

Looks like a product owner is going to have to be more selective in choosing affiliates instead of the open Smörgåsbord currently in effect for the majority of products.

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Old 10-15-2009, 05:35 AM   #19
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

Quote:
PDF: FTC Guidelines Analysis
http://www.performancemarketingallia...owles-Cohn.pdf
This paper is dated September 2009, so it was published before the new guidelines were.

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Old 10-15-2009, 06:38 PM   #20
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

I think someone should release a comprehensive product covering all of the changes, and what to do about them; key word: comprehensive, lol. Not a small report that scratches the surface.

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Old 10-20-2009, 09:59 AM   #21
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

I was looking forward to marketing online, until I saw the FTC ruling, looks like I will not be marketing online soon, I will have to get a lawyer, if I make one mistake without understanding the rule, then I am slap with $11,000 fine. It's like no second chances here ouch
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Old 10-20-2009, 12:17 PM   #22
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

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I was looking forward to marketing online, until I saw the FTC ruling, looks like I will not be marketing online soon, I will have to get a lawyer, if I make one mistake without understanding the rule, then I am slap with $11,000 fine. It's like no second chances here ouch
Marketing online is not just about affiliate marketing.

You can sell your own services, or sell stuff on ebay, or do lots of other things the way they have been done and not be affected by any of this.

As for the affiliate stuff, one can just add a disclosure agreement to your site and make sure it's visible or a link to it is clearly visible.

If you are not lying, or trying to deceive in any way you shouldn't have any issues.

I mentioned before - FTC is not going to crack down on every little site. They are going to be looking out for specific complaints to know who to go after or check out. They don't have nearly enough man power to look at every single affiliate site on the web.

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Old 10-22-2009, 09:35 AM   #23
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

Thanks, but I started to market with clickbank products with Pay Per Click, I wonder if there is a course on following all the guidelines of FTC regulatrions, I surely do not want to pay that $11,000 fine.



Quote:
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Marketing online is not just about affiliate marketing.

You can sell your own services, or sell stuff on ebay, or do lots of other things the way they have been done and not be affected by any of this.

As for the affiliate stuff, one can just add a disclosure agreement to your site and make sure it's visible or a link to it is clearly visible.

If you are not lying, or trying to deceive in any way you shouldn't have any issues.

I mentioned before - FTC is not going to crack down on every little site. They are going to be looking out for specific complaints to know who to go after or check out. They don't have nearly enough man power to look at every single affiliate site on the web.
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Old 10-22-2009, 04:40 PM   #24
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

I just saw a WSO listed for how to beat the FTC honestly.

# BRAND NEW - Beat The FTC Honestly - And Still Rake In The $$$ #

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Old 10-23-2009, 04:03 PM   #25
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

Anyone know how you're supposed to comply with these new FTC guidelines if you're advertising on Twitter, Adwords, banners, etc where you have a limited space or a limited amount of characters. Google Adwords only gives you two lines or 70 characters, Twitter 140 characters and there's not enough space to insert a disclaimer that you're an affiliate who is getting paid.
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Old 10-23-2009, 10:27 PM   #26
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

*sighs*

Maybe I should have gotten into the banking industry instead.

Doesn't seem to be much regulation there.

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Old 10-24-2009, 06:07 PM   #27
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

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Anyone know how you're supposed to comply with these new FTC guidelines if you're advertising on Twitter, Adwords, banners, etc where you have a limited space or a limited amount of characters. Google Adwords only gives you two lines or 70 characters, Twitter 140 characters and there's not enough space to insert a disclaimer that you're an affiliate who is getting paid.
Google discloses Adwords ads are sponsored links, so you should not have to disclose right in the ad. There is just no room. But should disclose on the landing page.

In Twitter I've seen people just use the hash tag #ad. Again don't see how there is room for much more than that on Twitter itself, so the main disclosure would have to be on your page/blog post/site.

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Old 10-24-2009, 06:22 PM   #28
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

FTC can kiss it ... Who care's - They will not run my business nor tell me how to live my life. All of my sites have always had terms, privacy, disclaimers, and etc...

Great Post Steve - Fully Agree!

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Old 10-24-2009, 07:03 PM   #29
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

I THINK ( my opinion ) as long as you have a disclamier you should be fine. Also I learnt a trick from Frank just say "80% off the buyers will not make any money" thats a fact remember the 80 20 rule, and your covered.
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Old 10-25-2009, 09:10 AM   #30
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

Maybe I should get all these little courses on the subject and create a full-blown quality one - without plagiarizing of course. I could even get some interviews with the feds, aha.

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Old 12-14-2009, 08:47 PM   #31
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

Hm...so has anyone heard of the FTC going after anyone yet since the law became official?

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Old 12-15-2009, 11:12 AM   #32
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

Anyone? It would be strange if they were "small-fry" and not someone popular, at least as of yet.

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Old 12-16-2009, 11:24 AM   #33
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

Here's a good "official" link: Advertising and Marketing on the Internet: Rules of the Road

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Old 12-16-2009, 11:44 AM   #34
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

i use a disclaimer page in all my sales page.

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Old 12-16-2009, 03:25 PM   #35
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

Quote:
Originally Posted by TheRichJerksNet View Post
FTC can kiss it ... Who care's - They will not run my business nor tell me how to live my life. All of my sites have always had terms, privacy, disclaimers, and etc...

Great Post Steve - Fully Agree!

James
I have to agree wholeheartedly with Steve and James here.

Three problems have plagued america for too long:

1) Lack of accountability -- Remember the hot coffee McDonald's debacle? It's not your fault you didn't know that coffee was hot, it was McDonald's fault. America, you're too stupid to learn from your mistakes, so we'll have to pass a law that punishes all for the stupidity of a few.

2) Spinelessness -- Americans are too afraid to speak up. If they do, they are branded as racist, war monger, fear monger, pacifist, right-wing terrorist.

3) Complacency -- How many times have you heard "what can you do about it, nothing! So don't worry about it." Too many people have this syndrome, and this is precisely why America is drowning in bureaucracy to this day.

These problems are what allowed the FTC, FCC and IRS to pass these laws WITHOUT CONSENT OF THE AMERICAN PEOPLE. No one spoke up out of fear, and many others felt nothing could be done about it.

Until these issues are fixed, kiss the bill of rights goodbye.

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Old 12-21-2009, 12:46 PM   #36
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

I appreciate the contribution of posts to this topic. I know no one wants to be the test legal case to get slapped with legal action from the ftc. regarding affiliate marketing.

Although the ftc new guidelines regarding affiliate marketing have been enacted I really did not get a clear example from them on how to go about it. I have personally updated my disclaimer and terms of use pages to include the fact that the websites I publish and have a link back to my disclaimer page states that affiliate ads and offers may appear on the site and that commissions or payments are received that may cover advertising costs involved and for making the visitor aware of some information that may help them.
Has anyone used a similar approach? Will these action suffice?

cheers
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Old 12-21-2009, 01:02 PM   #37
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

Affiliate compensation 'disclaimer' is something that I did long
before these new FTC rules came.

In my first intro message to my subscribers I wrote something
like ' I am also going to send you messages that promote other
people's products and I am hopefully going to make some money
if you buy those products through my links.'

I mean, why hide the fact that you make money through your
affiliate links? Noone judges you for doing it, as long as you
care for your subscribers and visitors and don't try to sell them
every single new ebook that comes out.

||Total Traffic Mastery videos || Resell Rights - Know-How ||Successful Online Business - Know-How || Make Money Online || A.C.
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Old 12-23-2009, 05:52 AM   #38
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

when I 1st heard of the new FTC rules, I was irrate. Right now, after some rethinking...

I'm still irrate, but at the same time nonchalant...

because I know I'm not doing anything wrong. (okay so maybe the only wrong I'm doing is that I don't tell anyone about commissions... but I'll change that, and once I do, I'm clean.)

wait...

You mean I actually have to tell my subscribers whenever I make commissions because one of them made a purchase?

And how on earth do I write a disclaimer? I can't afford a lawyer. I'd probably have to write one myself...

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Old 12-23-2009, 02:17 PM   #39
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Hi kendrickyi, the way I understand the new guidelines from the ftc is, you as the website owner/affiliate have to make them the visitor aware that the endorsements are real and this would apply to emails as well.
I would like to see maybe an example of what would be consider ftc compliant.

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Old 12-23-2009, 07:55 PM   #40
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

I have been in payment processing for more than 20 yrs and have always specialized in what the industry views as the 'high risk niche': biz opps, franchise, weight loss, mlm, ecommerce, etc.

Part of the due diligence of approving these merchants was an overview of their advertising for FTC compliance - and what the FTC is now enforcing online is really nothing more than what other industries have been dealing with for years.

Ever notice the little line at the bottom of the ad (print and tv) for all of the weight loss comemrcials that says something like "these results are not typical, yada, yada, yada"? Ever go to a franchise or business opportunity show and see the disclaimers on all of the printed material advising you that there are no guarantees that you will make as much money as the people in the video?

The point is that in many industries, disclosure of paid endorsements have been required for quite awhile, as have income disclaimers, and so it's really nothing new, it's just been extended to cover online marketing as well because it has gotten so out of hand (thank all of the floggers for that one!)

One of the biggest things to be aware of is using testimonials: Using testimonials is fine - but if you really want to be covered in case you are questioned, do what the biz opp, franchise market, weight loss and MLM companies have to do: keep the name and contact details of the person that has offered the testimonial on file. In this way, if anyone ever questions the validity of the testimonial, you are covered. And trust me - in past cases, this has indeed been a big issue, due to the fact that testimonials often have claims of income generation from using the product. So - if you use something like this - make sure you document everything that you can before you post it online!

If you are an affiliate and have been using information from the company's website - make sure that they have the proper documentation to back up any testimonials on their website before you use them. If you DO use testimonials - make sure they are used EXACTLY as they were originally posted - do not take a line out of this one and a line out the another one to create "original" content for your site (I mention this because a recent WSO suggested doing this - BAD TACTIC!).

The bottom line is that as a small blogger you probably won't have anyone knocking on your door - but if they do, it's going to be expensive. I have personally known MANY people that have run afoul of advertising regs, not just the FTC but also the AG offices - and even if nothing actually comes of it, because you have things to back up your ads - it's still a nasty and usually expensive process.

The problem is not spinelessness - it's the fact that there are always a few jerks out there that are intent on ripping people off rather than making money by offering a legitimate service or product, people complain, and so new regs get enforced.

Unfortunately - it's kinda like gun control - it only stops the law abiding folks.

Just my 2¢ but it does come from a couple of decades of compliance with pretty much the same issues in the offline world.

Melody

P.S. Happy Holidays, Everyone!!

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Old 12-23-2009, 10:05 PM   #41
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

Thanks Melody for your informative reply. It really is a shame that in this instance the good have to be penalized for the actions of others, but something must be done to protect the consumer.

cheers

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Old 12-23-2009, 10:27 PM   #42
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

Yeah that's true. But right now, as an affiliate, does this mean that I also have to email the product owners and merchants and ask them if they comply with the FTC rules? I mean, imagine those affiliates who promote many different merchants! And imagine those affiliates who have many blog entries promoting many different products. That's gonna be a troublesome task, editting hundreds (or thousands) of blog entries and headlines and websites...

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Old 12-24-2009, 08:07 AM   #43
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Hi kendrickyi, the ftc has the Can Spam Act guidelines that gives marketers guidelines with respect to emailings. The fines can be brutal if not followed, as has been proven in recent times on the news.

It even has a few examples posted on the site. As long as the guidielines are followed you should be ok.

cheers

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Old 12-24-2009, 08:14 AM   #44
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

I think it'd be cool for one of the big $$$ IM guys to write maybe an eBook or something tackling how affiliates should best handle these new FTC guidelines. I'm talking "TESTED" methods of disclosure placements and wording. Not only would it be financially beneficial, but it would make for an extremely interesting learn. Just an idea.
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Old 12-24-2009, 08:46 AM   #45
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

Quote:
Originally Posted by Mattiyu View Post
Hi kendrickyi, the ftc has the Can Spam Act guidelines that gives marketers guidelines with respect to emailings. The fines can be brutal if not followed, as has been proven in recent times on the news.

It even has a few examples posted on the site. As long as the guidielines are followed you should be ok.

cheers
thanks for the info!

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Old 12-24-2009, 09:59 AM   #46
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Quote:
Originally Posted by Mattiyu View Post
Thanks Melody for your informative reply. It really is a shame that in this instance the good have to be penalized for the actions of others, but something must be done to protect the consumer.

cheers
What people don't seem to realize is that these type of regs, especially when it comes to consumer protection, tend to eventually filter down to the local level - meaning your local DA's office, and this is when the 'smaller' folks will start getting hit.

If you are going to be promoting a product that has income claims, weight loss claims etc, be sure your disclaimers are solid. If you are going to use testimonials, and it is your own product that you are promoting - think about doing what the 'regular' businesses do to back up their claims of income or weight loss: get a signed affidavit from the person making the testimonial.

This probably isn't necessary if someone is simply saying "wow! I love this new software, it really made the task a lot easier for me" BUT if the person says "Wow! This saved me so much time every day that I was able to increase my income from $22 a day to $120 a day in 6 weeks!", then you really should consider it...just in case.

And here is another hard cold fact: in tough economic times - think local budget cuts here, folks - your local authorities are much more inclined to be looking for relatively easy new income sources, aka fines.

Not trying to be the bearer of gloomy news here - but as I said previously, I have been through this in the offline world - and in more than one industry as these types of regulations were passed and enforced.

It's just simply our turn at the plate.......

Melody

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Old 02-23-2010, 09:28 AM   #47
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

It seems to me that many people are under the impression that the new disclaimer regulations only force you to say "results not typical", but I am fairly certain this is not the case. My research indicates that you actually have to display a "typical result" and in many cases this is simply not possible. For example, I saw a new product launch that mentioned this new regulation and how since no one had bought and tried the new product yet, the typical result is nothing at all. I was relieved at its honesty, despite the fact that some people could make a fortune from it.

As for compensation disclosure, if you offer a bonus in your affiliate promotions, this shouldn't be trouble at all. You can just say that since you are receiving compensation for them buying through your link, they get something extra from you. You can weave it into the conversation seamlessly.

I'm glad that people have benefited from me starting this thread. Hopefully it will save some of them a good deal of fines if they were at risk.

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Old 02-23-2010, 09:33 AM   #48
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Default Re: FTC Guidelines for Product Creators and Their Affiliates

Oh, another extremely important issue I haven't seen covered that well is what I mentioned in the beginning. I read a recent Frank Kern interview how he doesn't even recruit affiliates at all for his ClickBank products because he doesn't want to be liable for their actions - which you can be if you have your own affiliates. If anyone has ideas for how to effectively communicate with your affiliates and enforce compliance, this would be beneficial to the community as well. It's more complex than simply sending out an email to your affiliate list (if you have them subscribed to a newsletter) and letting them know. You'll actually have to keep tabs on them, which needless to say is a daunting task. Maybe someone could invent some type of software to partially automate this process. No idea how you would though, being that you'd have to monitor the precise wording of postings all over the Internet, not to mention private newsletters...

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