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Here's How To REALLY Understand The FTC Guidelines

by psresearch
7 replies
With the exception of "no safe harbor" none of the FTC Guidelines are new - just clarification of existing guidelines.

I've seen all kinds of questions being posed about various aspects of the guidelines, including such things as "does font size in the disclaimer" matter, etc.

Guidelines from the FTC will never give you a clear cut answer to every possible scenario, because the FTC looks at an advertising campaign AS A WHOLE - and since there are so many ways marketing gets carried out it would be impossible for the FTC to say "do this" "don't do that", etc.

But there's an easy way to figure out how the FTC THINKS about their guidelines.

1) Read actual cases that they've already settled. There are tons of them available right on the FTC site - and you can subscribe to their feed to get updated on new cases they've recently filed.
Federal Trade Commission

2) Read the FTC policy statement on deception.
FTC POLICY STATEMENT ON DECEPTION

The policy statement on deception gives a great insight into the framework the FTC uses for interpreting and enforcing guidelines.
#ftc #guidelines #understand
  • Profile picture of the author Nightowl
    Unfortunately, the letter says nothing about the two aspects that have some people so worried: (a) Testimonials and (b) Affiliate Disclosure. Of course, there weren't many affiliates around in 1983.

    Still, it's worth reading for the information on how the FTC views "deceptive practices".

    - Nightowl
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    • Profile picture of the author psresearch
      Originally Posted by Nightowl View Post

      Unfortunately, the letter says nothing about the two aspects that have some people so worried: (a) Testimonials and (b) Affiliate Disclosure. Of course, there weren't many affiliates around in 1983.

      Still, it's worth reading for the information on how the FTC views "deceptive practices".

      - Nightowl
      It will still give a framework for how they'll likely view many of the issues that come up in those cases. The one thing they really seem to look at (in the money making arena) is the target demographic of an offer - something that's discussed in the policy statement.

      As to testimonials - that's more interesting because the rules there have actually changed and aren't just clarification of existing guidelines.

      Lesley Fair, who was recently (or maybe still is) an attorney in charge of consumer and business education for the FTC has mentioned that she reads the policy statement on a regular basis.
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  • Profile picture of the author Nightowl
    Right, which is why I mentioned that the piece is still worth reading. It's the part about "what a reasonable person would expect" after viewing the ad that merits careful attention.

    But then we need to know what the FTC considers a "reasonable person" for any particular demographic.

    - Nightowl
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    • Profile picture of the author dljmktg1
      Actually there were millions of affiliates around in 1983. Just not online.

      Businesses such as Mary Kay, Avon, Amway, and others have relied on affiliate sales since their inception and have had to abide FTC regulation for decades. A good yardstick might be to visit some of their websites and see what types of disclosures they have for prospective affiliates.

      As for me, I'm going to wait a few days and see what some of the major programs are recommending to their affiliates, if anything. Then, take it from there.

      Dan
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  • Profile picture of the author pcpupil
    Its actually quite simple.
    Dont use testimonials unless you have proof.
    If your an affiliate,say so.
    On my site i put simply,[if you click on one or any of my links,i recieve some kind of commission.Being monetary,or gifts.]
    Thats all.
    I was thinking about putting:
    [if you click on one or any of my links i recieve a commission.This way i might be able to afford a dentist so i wont look like bucky the beaver anymore.The FTC is requiring us marketers to post this now.}
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  • Profile picture of the author Sylonious
    It's amazing how much misinformation there is floating around about the new rule changes. The majority of people seem to think they can just put up a disclosure on their privacy policy and call it a day.

    People seem to be making up their own FTC rules.

    I doubt they will every get trouble, though. The FTC isn't going to bother, anyway.
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  • Profile picture of the author Shana_Adam
    Ive had a read and can unanimously say - vagueness and oral diarrhea wins the day with consumers and affiliates.

    What are they really talking about?

    People need clear guidelines example " do not promote a scam product and put a personal endorsement on it......

    Intentional vagueness will mislead people into finding loopholes,after all affiliates still need to make sales.

    This rule applies to all advertising at least we can take comfort from that big business or small business the same laws apply.
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