98% Of Salesletters To Become Illegal Soon? What's The Warrior Solution? :)

[Networking_now]

Originally Posted by Michael Lee

I was just wondering what's the penalty or consequence if the FTC did take you down.

Would it be something as serious as what happened to Frank Kern many years ago? Or would they shut down your whole online business, or just the one "guilty" website?

What happened to Frank Kern many years ago ? - somthing fraudulent? or did they shut his sites down or somthing ?

[Marian Berghes]

I don't expect an answer..I was just asking to see what other people think bout that

Frank kern was sued by the FTC for not having a proper disclaimer on his website, on one of his first products online, that was years ago.

He got sued for all he had - 600.000$+ , he then dissapeard for some time from the IM world, build an awesome niche business, then came back to IM to teach again.

There you go

[Thomas]

Originally Posted by Jack Duncan

What I was trying to point out to the original poster was that just because he lived in Germany didn't mean he wouldn't be affected...because chances are that a lot of "services" he used were U.S. companies...so therefore they would be required to comply with the law.

For instance, let's say someone in Singapore decides to just say "screw it with the new U.S. law" and goes ahead with business as usual.

The FTC could very easily threaten ClickBank, PayPal, Google, or anyone else that marketer is "working" with...since those companies ARE based in the U.S.

Make sense?

Jack,

Unless the law states that those U.S.-based businesses must impose the same requirements on their own customers, I don't see how it will affect that foreign business?

What I mean is: that law might say that Clickbank (for example) can't claim you'll make a million dollars a day by using Clickbank's services, but does it say that Clickbank must stop it's weight-loss product vendors (for example) from claiming you'll loose 100 pounds in a week using their product? In other words, does it make U.S. companies into enforcers of U.S. law? That's not a rhetorical question; I didn't see anything that suggests the answer is yes but I may have missed it. If the answer is yes, then presumably Clickbank (in the example above) will alter it's terms and conditions accordingly.

Also, all advice I have received to date suggests to me that the following example is true: If I register/ base my business in Ireland, and register my domain in the U.S., and host my site in Germany, and use a payment processor in Australia, and someone from Canada purchases my product, then they are purchasing from an Irish company, and the only applicable law is Irish law. They (my Canadian customer) are not doing business with anyone in the U.S., Germany, Australia, or Canada, and the laws of any of those countries will only affect me insofar as they affect the ability of those suppliers to continue providing their services to me (which leads back to my 'non-rhetorical' question above).

Tommy.

P.S. - Clickbank might actually be a poor example as, if I change "...a payment processor in Australia..." to "...use Clickbank as a payment processor..." then, technically, the only selling I'm doing is that of an Irish company selling directly to an American company (making Clickbank an importer?).

[David Hooper]

I wonder how this will affect personal ads.

For one, I'm thinking, people will have to start posting recent photos...

Then, there is the issue of "body type." If you need to lose 20 pounds, "athletic" or "slim" won't work anymore.

Plus, the typical results of "ruined credit" and "crabs" will need to be listed.

[innocent07]

-Is this Law just for US registered websites?
-or usa based sales letter sites- where the Domain + hosting is registered in the us?

-What if you are from for example France, but you use namescheap for your domain, and another US hosting company.

-your hosting for your sales page= US , but your location = France?
does that make your salesletter from the us?



and lastly, would these laws have to be included in your adword campaign sentences? (as many adword ads have crazy claims too) so does-could it apply to your adwords ads? or just sales letters?

[Angela V. Edwards]

Originally Posted by Jack Duncan

Ok...

First things first:

65.2% of all statistics are made up on the spot.


So, yes, I'm pulling the 98% part out of thin air...based solely on my personal experience with salesletters...and a new law to be put in place by the FTC shortly.

Here's the new FTC rule: You can't use a testimonial or promise results that are not typical...without telling your customers what the typical results are.

That includes any portion of your advertisement...including testimonials, headlines, guarantee's, etc.

Have you ever noticed that all those weight loss programs they sell on TV always say "Results not typical"? Why would anyone want to sink that kind of money into a program if it's not "typical" to lose a decent amount of weight? I wonder what the typical results are.

[JonStein]

First things first:
83% of Internet Marketers do not follow the law anyway!
(Did you REALLY claim all your internet income last tax year?)


Aside from that, the use of testimonials on websites will become extremely difficult for the FTC to regulate, especially for foreign marketers. The actual intent of the law is to go after other media advertisers in the weight loss and nutritional fields on TV and Print ads and no intention or future indication towards Internet Marketers.

Testimonials are largely used to show your customer that 'Hey Johnny did it and you can too!", However, an educated customer is not likely to fall into this marketing trap. The use of excessive or overblown testimonials on your site merely cheapens your product and further declares your desperation.

I think the FTC issue is really a NON-ISSUE to Internet Marketers.
(Yeah, I am still waiting for the 'sales tax' legislation to go into effect! remember that 'scare' back in 1998?)

[Trader54]

Originally Posted by JonStein

(Did you REALLY claim all your internet income last tax year?)

You bet!

If you are ever audited they will find every cent you made, unless you figured out a way to receive cash over the internet.

[Jack Duncan]

@ Thomas,
I agree that this is a long stretch...but when it comes to the FTC, or any U.S. government agency, the rulebook just doesn't seem to exist.

Case in point...I just heard today from a top copywriter, of an FTC case where not only the marketer was charged and prosecutor...but the printer who printed the piece as well.

Yeah, that's unusual...but it's also happened.

@JonStein

I think the FTC issue is really a NON-ISSUE to Internet Marketers.

I would have wholeheartedly agreed with you not very long ago...and I do hope you are 100% correct...

But it seems like a "storm is brewing" on the horizon...and I think it all comes down to one word...CONTROL



.

[Angela V. Edwards]

Originally Posted by TMG Enterprises

PS. Has anyone else ever noticed the huge, fattening meals with the diet drinks for "larger" people? I worked in restaurants too long, I think.

Yeah, I worked in restaurants for 20 years. And you're right; many of then DO order diet. However, it's usually because of one of two reasons (NOT because they're on a diet): 1. They are diabetic, or 2. Regular, "sugared" soda pop tastes sickeningly sweet to them and they don't like it.

[Andy1750]

Just tell the truth. Easy!

Andy

[LegitIncomes]

Originally Posted by Angela V. Edwards

Have you ever noticed that all those weight loss programs they sell on TV always say "Results not typical"? Why would anyone want to sink that kind of money into a program if it's not "typical" to lose a decent amount of weight? I wonder what the typical results are.

Diet programs: Most of them say "Take this pill/powder, supplement, etc..."AND EXERCISE ON A REGULAR BASIS".

If people would actually follow most any diet plan, without straying from it, they would lose weight, and a good amount of it. The problem is that most people are TOO LAZY, that's how they got FAT in the first place! Of course there is the rare medical exception, but this is the case for 99% of the population.

So the "typical" results for any diet plan (or any legit internet marketing product) aren't going to represent the true value of the product, or reflect on the quality of the product itself. Because the truth is, they work, it just takes people getting off their butt and TAKING ACTION.

If they want "typical" results posted, are those the typical results of a lazy person, or someone who took action and followed everything step-by-step?

Why should any business suffer because the customer was lazy? That's the problem I have with the whole thing.

[Andy1750]

Originally Posted by Josh Kulp

Diet programs: Most of them say "Take this pill/powder, supplement, etc..."AND EXERCISE ON A REGULAR BASIS".

If people would actually follow most any diet plan, without straying from it, they would lose weight, and a good amount of it. The problem is that most people are TOO LAZY, that's how they got FAT in the first place! Of course there is the rare medical exception, but this is the case for 99% of the population.

So the "typical" results for any diet plan (or any legit internet marketing product) aren't going to represent the true value of the product, or reflect on the quality of the product itself. Because the truth is, they work, it just takes people getting off their butt and TAKING ACTION.

If they want "typical" results posted, are those the typical results of a lazy person, or someone who took action and followed everything step-by-step?

Why should any business suffer because the customer was lazy? That's the problem I have with the whole thing.

Some customers are lazy, other customers won't follow the diet because it's too stringent. The whole point of any promotion is that it should be BALANCED AND TRUTHFUL. And it's the CUSTOMER and NOT THE VENDOR who should define whether a product is good or not. This is for example how serious products like medicines are registered - based on efficacy and NOT NON-EVIDENCE BASED CLAIMS!

Thanks,

Andy

[innocent07]

Originally Posted by innocent07

-Is this Law just for US registered websites?
-or usa based sales letter sites- where the Domain + hosting is registered in the us?

-What if you are from for example France, but you use namescheap for your domain, and another US hosting company.

-your hosting for your sales page= US , but your location = France?
does that make your salesletter from the us?



and lastly, would these laws have to be included in your adword campaign sentences? (as many adword ads have crazy claims too) so does-could it apply to your adwords ads? or just sales letters?

can anybody shed some light on my question please

[Rod Cortez]

Originally Posted by innocent07

can anybody shed some light on my question please

It's not easy to shed some light on it....yet. Remember these are not laws, they are FTC guidelines that are currently under "review" and may or may not be updated by the "end of the year" per the article that was shared in the OP via link. So what may be written down now might change some or a lot over time. The FTC is also severely unmanned and cannot follow the thousands up on thousands of complaints that they receive. Like I stated earlier, I'm very doubtful that much is going to change, but only time will tell.

RoD

[charlesburke]

Why is everybody so worried about the effects of greater disclosure? It's simply not much of an issue. Want proof? Go watch television for a half hour.

The TV ads being run by the drug companies, with all the side effect warnings, sound like black humor from a commedian's routine, but people still flock to buy those products.

Evidence suggests that most people will dismiss anything that doesn't agree with their fantasy... even clear factual statements of dire danger.

Want a fun test? Why not put up a test site or two and write them exactly the way you would if that set of regulations goes into effect. In orther words, write them as worst-case examples.

After all, doesn't everybody say test, test, test? Why not. At the very least you'll be getting the jump on everybody else.

Know what I think will happen? People will still buy, but they'll also compliment you on the humor on your site.

---------------
FULL DISCLOSURE:
I have not tested these ideas. No one I know has tested these ideas. They may cause you to lose all your money and go out of business. If you actually manage to make massive profits and become a wildly successful multi-millionaire using these ideas, you are abnormal and may not boast about it to anyone except in a tiny, barely-visible testimonial on my website. Typical results include night terrors, cold sweats, hairy palms, degenerating vision, and a recurring dread of opening emails. Grave danger exists, and beyond this point be demons.
---------------

Cheers from warm and smiling Thailand,
Charles

[jjpmarketing]

Pharmaceuticals are going to hate this regulation. All those hypey non FDA regulated pills are going to get a big boot out the door. This is good in that regard. It will also be good to eliminate the hypey unrealistic sales pitches you see on some sales letters.

This is just going to make advertising a little more honest. As for those that fear the laws or regulations that moderate the industry... it is either adapt and move on, or refuse to adapt and get left behind.

Dennis

[Mike Hill]

Originally Posted by Jack Duncan

Jay,
Wait a second buddy...



The law here isn't going to restrict "outlandish"...the law will demand "typical results" to be fully disclosed.

Do you use headline's on your salesletters?

"How To Get 10 Visitors To Your Site In 3 Years"

If the average person that picks up your course and tries it only gets 2 visitors to their site in 3 years...

Guess what?

New Headline: How To Get 10 Visitors To Your Site In 3 Years (Results Not Typical...Average Student Gets 2.3 Visitors In Three Years)



The good news...

You live in the UK? (I might be coming to join you. )

Yeah but Jack they cannot tell you to put exact typical results in the headline... At the bottom of the sales page or under your screen shot earnings is sufficuent and that's no different that infomercials...

Mike Hill

PS. This is no big deal... unless a sales letter is flat out lying about results... If that's the case then I welcome this change with open arms

[sbucciarel]

Originally Posted by Michael Motley

so basically marketers will have to be truthful in their sales letters?


OH THE HORROR!!!

lol ... exactly. This doesn't worry me at all. I hate fake testimonials and false income- weight-results, claims.

[mailco]

Does this mean if I run Google Adwords on my site and the advertisers exaggerate their claims, I can be prosecuted?

[stevenh512]

Originally Posted by Jack Duncan

A disclosure such as, “Results not typical” or, “These testimonials are based on the experiences of a few people and you are not likely to have similar results” is insufficient to prevent this ad from being deceptive because consumers will still interpret the ad as conveying that the specified savings are representative of what consumers can generally expect.

I'd like to know how "Results not typical" or "These testimonials are based on the experiences of a few people and you are not likely to have similar results" can in any way be interpreted as "These are the results you can generally expect."

I mean, honestly, if consumers really lack such basic comprehension skills (and with the exception of a few, I highly doubt that), how is any disclaimer or mention of "typical results" going to keep marketers out of trouble with the FTC under these guidelines? It's absolutely ridiculous to say that "results not typical" or "you are not likely to have similar results" conveys that these are the typical results you can expect.

[LB]

Originally Posted by jjpmarketing

Pharmaceuticals are going to hate this regulation. All those hypey non FDA regulated pills are going to get a big boot out the door.

No, pharmaceuticals will LOVE this regulation.

It will destroy their non-pharmaceutical competition and through selective enforcement absolutely nothing will happen to the pill pushing pharmaceutical companies.

They can kill people and the government doesn't care. They get caught falsifying studies, people die, and someone gets a slap on the wrist.

The point is the little guy always gets stomped and the big boys do as they please...no more laws or regulations are needed for the small business.

Fraud is already illegal and other damages can be remedied via civil suit.

[LB]

Originally Posted by sbucciarel

lol ... exactly. This doesn't worry me at all. I hate fake testimonials and false income- weight-results, claims.

LOL.

You have a link in your sig stating that people can make 3,000-5,000 per month.

Does everyone do that? Is that typical? What's the average person make? How many have made that? Did you conduct a valid scientific study? What's the low end? Is it disclosed?

[BurgerBoy]

Well, I guess this site would be in trouble then. Right.

Buy My Stupid Ebook, Overly SEO d Title, Keywords Crammed like Make Money Online Make Money Online Make Money Online

[danhughes]

OK - Time for some good news!

Clearly this is a serious issue facing any US based marketer... but after some thought, it might not be that bad...

Concern: US based marketers are at a disadvantage.
Well, only if we play it that way... If we collectively try to capitalise on this, it could be a *huge* advantage.

People are automatically suspicious of sales pages... That's why we spending so much time "proving" our message.

The answer... BUY AMERICAN!

"Fellow Skeptic,
You know it - I know it. The world is full of Fakes and Charlatans. Despicable people - thousands of miles away- hell-bent on stealing your hard earned money. They use fast-talk, half truths and Flat Out Lies to virtually grab the cash right out of your wallet. Make no mistake... Giving these criminals your credit card number is extremely dangerous.

Finally! - Protection and the ultimate piece-of-mind for legitimate people like me and you.
The Federal Trade Commission (A branch of the United States Government) is taking action. Using new and powerful laws, the FTC has mandated that all American companies ensure each and every word they use be absolutely factual. Testimonials must be iron-clad supported by Government issued photographic ID and all facts and figures must be scientifically evaluated for complete accuracy.

Friend - I am an American.
Not only do you have my word and bond to protect you, we now have the power of the United States Government on our side. Rest easy knowing that you are safe from financial ruin by buying from me... an American."

OK - So maybe I hammed that up... just a little But I guessing you get the point.

This really could be a good thing.

[Daniel Scott]

BurgerBoy, best. Link. EVER.

I think we're all blowing this out of proportion here. Most of us will never do enough business to get on the FTC's radar, and even if we do, my guess is you'd have to step over the line fairly significantly to get them on your ass.

I'm not sure what happened with Kern, but the report I read from the FTC's website said that the numbers he used for his sales letter were unrealistic, because by the third generation of sellers it would have to be sold to 13 billion people or something. I'm not sure if this is true or not, and I have enormous respect for Frank, but to me (and I could be wrong) it sounds like he made an honest mistake and paid for it... but made a mistake nonetheless.

Until this law is passed we can't really be sure how it will impact us. When I write a sales letter, I find I put this kind of stuff in anyway (the results not typical bit) because I believe that's an objection going through their head at that point, and I want to "nip it in the bud".

Let's wait til things change to see how bad (if they're bad at all) things will be. My guess is there'll be loopholes big enough to drive a truck through and honest sellers will only have to tweak things slightly in order to keep getting awesome conversion rates.

But I guess we'll see.

-Dan

[stevenh512]

Originally Posted by Daniel Scott

I put this kind of stuff in anyway (the results not typical bit) because I believe that's an objection going through their head at that point

The "results not typical" bit isn't going to be good enough under these new rules, because apparently "results not typical" actually means "these are the typical results you can expect to get from this product" (according to the FTC's example, anyway).

[Black Hat Cat]

Originally Posted by Jack Duncan

Again...this isn't about truth vs. lie

It's about typical vs. non-typical
It means that companies will have to PAY for tests out of their own pocket...just to see how people "typically" respond to their product. Regardless of what can actually be accomplished with the product.

So, say you write an ebook on "How To Flip Websites".

Even if 10 of your reviewers made $1500 in the first week, before you can use that information in your salesletter, you will need to pay for a group of "average joes" to try out your product...make sure the results are statistically accurate...and then file paperwork with the FTC when the non-average-joe user doesn't make the $1500 you claim, showing them your test results.

Ummm.....yeah....it ain't never gonna happen.

[azlanhussain]

I dont think this will have any effect on product promoted outside US.

[Marian Berghes]

If it does get approved you just add an explanation under the testimonial like:
"Those results CAN be achieved and have been by alot of people, the typical success rate is X$/X%, this is due to people not implementing the course,not taking enough action etc.."

And with a bit of psychology in mind the prospect should think " So if I buy this I can make that kind of money, I just have to follow every step...and I will cus IM NOT LIKE THE OTHERS......"

Most people like to consider them different/better in some way when it comes to other people...and no customer will say in theyr head "yeah im gonna totally fail cus the typical results are...."

[dageniusmarketer]

How about we create a petition, get signatures, and send it to Washington telling them we don't agree, nor do we want any new legislation? That I think would have more effect than just talking amongst ourselves saying "we dont like that".

Only way to at least try to not get something that you feel is unjust not passed into law, is to let your voice be heard.

So we can rant and rave on the issue from morning till night.... but if we're not going to rant and rave in the FTC's direction, then really and truly.....whats the point?

[iwebtopia]

Originally Posted by Jack Duncan

P.S. I didn't even go down the road of affiliate issues...that is another whole ball of wax. Goodbye review sites...

Does this mean I won't be able to have blogs/squidoo lens that review and promote affiliate products? I have not bought the products myself, but just promoting them.

[Alminc]

What is the difference between promissing earnings of $1000s a month
after reading an ebook and scam?

[Dana_W]

Unfortunately what will probably happen is that the FTC will decide to make a VERY PUBLIC example of a few marketers who violate this, to prove their point.

I hate deceptive advertising as much as the next person, but I completely agree with Dan here - What part of "Results Not Typical, Your Mileage May Vary, This Stunt Was Done By A Trained Driver On A Closed Course, Do Not Attempt This At Home" - are people having trouble understanding?

[stevenh512]

Originally Posted by dageniusmarketer

How about we create a petition, get signatures, and send it to Washington telling them we don't agree, nor do we want any new legislation? That I think would have more effect than just talking amongst ourselves saying "we dont like that".

Not to turn this into a political discussion.. but since when does anyone in Washington care what the people think? Unless you're paying for their campaign, all your congresscritters are going to do when you send them a letter or petition is thank you for your input (if even that), disregard it and vote the way they're being paid to vote. Try it some time and tell me I'm wrong. Unfortunately as long as so many people believe in this fake two party "lesser of two evils" system the politicians have set up, that's the way things will always be.

When you're dealing with faceless bureaucracies like the FTC, IRS, etc.. it's even worse. They don't even have to pretend to care about your input to get your vote come election time.

[gareth]

What about websites hosting locale ?

Or the owner of the sites locale ?

FTC can do squat to me in NZ. Perry Belcher -- you listening boy !?!

[dageniusmarketer]

Originally Posted by stevenh512

Not to turn this into a political discussion.. but since when does anyone in Washington care what the people think? Unless you're paying for their campaign, all your congresscritters are going to do when you send them a letter or petition is thank you for your input (if even that), disregard it and vote the way they're being paid to vote. Try it some time and tell me I'm wrong. Unfortunately as long as so many people believe in this fake two party "lesser of two evils" system the politicians have set up, that's the way things will always be.

When you're dealing with faceless bureaucracies like the FTC, IRS, etc.. it's even worse. They don't even have to pretend to care about your input to get your vote come election time.

Well, as long as everyone has that mentality, indeed things will continue to go the way they are. An individual writing a letter, may very well have no chance. If everyone banded together however, and let these guys know how we really feel, then that would make a different story altogether.

One only has to look at the big "We the People Stimulus Package" ad at the top of the forum to see that we cannot defeat them without letting our collective voice be heard.

I can only imagine the fortunes that are gonna be screwed up for alot of guys in this biz, especially when the FTC is writing with their pens in broad definition. You may think it small now, but trust me, history has always shown, things always start off small. When its no longer small however, and then becomes a big problem, and then you want to complain, it will unfortunately be too late.

If guys wanna petition or something, count me in.

[stevenh512]

Originally Posted by dageniusmarketer

Well, as long as everyone has that mentality, indeed things will continue to go the way they are. An individual writing a letter, may very well have no chance. If everyone banded together however, and let these guys know how we really feel, then that would make a different story altogether.

Sadly, as long as people keep choosing "the lesser of two evils" (which are really just two sides of the same coin) when it comes time to step into the ballot box, I seriously doubt any amount of letters or petitions are going to change things. The two major political parties have too much power and too much money and they have 90% of the U.S. population "brainwashed" (for lack of a better term) into believing that they're the only two choices out of sometimes dozens of names on the ballot. Think about it, why is it always the "little guy" who gets stepped on while the big oil and pharmaceutical companies can literally kill people and get away with it? It's not because they all wrote letters and sent petitions to Congress.. it's because they've spent billions of dollars lining the right pockets, plain and simple. The political process is corrupt and as long as the same people and the same parties are in control it will remain that way. Notice how nothing ever really gets done about campaign finance reform? Notice how Congress some years ago had no problem amending the Constitution to put term limits on the President, but whenever the subject of Congressional term limits comes up they all whine and cry about how it's unconstitutional?

One only has to look at the big "We the People Stimulus Package" ad at the top of the forum to see that we cannot defeat them without letting our collective voice be heard.

And I believe the place to let our collective voice be heard the loudest is the ballot box, where we have the power to remove the greedy, power hungry career politicians from office and replace them with people who might (for a while anyway) actually care what we think.

[ildarius]

Is it me or this regulation looks as enforceable as the illegal download laws where a lot of people choose to ignore it, but 1035% harder to track?

IMO it's a good move by the FTC

Imagine you can put something like "Those are typical FTC certified results", will look better than any BBB icon IMHO

[LB]

Originally Posted by gareth

What about websites hosting locale ?

Or the owner of the sites locale ?

FTC can do squat to me in NZ. Perry Belcher -- you listening boy !?!

If you've ever targeted an ad to someone in the US, or sold to someone in the US...you've done business in the US. The FTC has argued this.

Now in reality are they more likely to go after those in the US? Probably, ya.

Besides, in business the US sets the pace...if this passes in the US I would expect Canada, UK, NZ, etc. to follow suit. This is just overall bad, ambiguous laws help no one and lead to selective enforcement.

[Randy Bheites]

I'll worry about this once the high-end corporate lawyers are done tearing the proposal to pieces, buying off all the key politicians, clogging up the courts with far-reaching motions, and burying the entire thing under layers of constitutional technical minuteae.

[petevamp]

Originally Posted by Jack Duncan

Ok...

First things first:

65.2% of all statistics are made up on the spot.


So, yes, I'm pulling the 98% part out of thin air...based solely on my personal experience with salesletters...and a new law to be put in place by the FTC shortly.

Here's the new FTC rule: You can't use a testimonial or promise results that are not typical...without telling your customers what the typical results are.

That includes any portion of your advertisement...including testimonials, headlines, guarantee's, etc.

ALSO...

1. If you decide to reveal an "extreme result" for your product, you have to disclose just HOW EXTREME the result was over the typical results. (i.e. Jared lost 245 pounds eating S***** sandwiches...but 99% of people who eat at S***** actually gain 40 pounds.) <- I made this up...it's just an example.

2. All celebrities will have to reveal their monetary involvement in companies before promoting a product.

3. All Blogs have to reveal that they were given free products to review...before promoting them.

4. Doctors have to reveal the extent to which they have used the product and their understanding of the products benefits.


Now, before everyone jumps in and says "First Amendment Violation", let's face the facts...the Constitution has been attacked (trampled on in some cases) for decades...and the wind isn't changing any time too soon.


If you'd like to know more about this new law...there is a pretty good archive piece in the Chicago Tribune: Federal Trade Commission's plan to change rules on ad endorsements, testimonials worries marketers - Chicago Tribune

Want to see some of the actual laws that will be amended:
Proposed FTC Endorsement and Testimonial Ad Revisions Add Blogs, Message Boards, Street Teams

What's the creative solution to this problem?

I'd love to hear your input...

One company immediately came to mind...Trump University.

One of the things they do in their $10,000+ coaching class is to "fire" any customers who don't follow the steps by a certain date...which insures that they can at least get an edge with testimonials...and make some great claims about the people who actually DID the effort.

What are your thoughts...ideas...?

Eventually this is going to be on our "front porch", so we might as well "grab the gun".


- Jack

P.S. I didn't even go down the road of affiliate issues...that is another whole ball of wax. Goodbye review sites...

This is why people have started making sure there is a disclaimer on their sales page. This takes advantage and proposes a loophole in the laws. There is a loophole around every single law out there.

[Star Riley]

I would say 124% of my blog readers will become millionaires if the FCC just let me have my way.

All jokes aside crooks will always be crooked at least 90% of the time the other 10% of the time they will be Lawyers and politicians.

Full disclosure may not matter in the future that's coming anyway as we will have a camera on every block and a terrorist in ever house.

We have gun control for everyone who abides by the laws, while killers are still shooting people to death in America.

Prostitutes will soon have to get an address and a cell phone to continue to promote their "offers" on Craigslist.

We get imprisoned when we discipline our kids, yet when they grow up to be thugs in the streets our tax money helps feed them prison food.

Enforcing laws good or bad just feeds the system after all a billion dollars or more a month has not stopped the Drugs from being sold on XYZ street yet.

We continue to ignore the fact that while laws are created by the actions of the lawless they mostly affect the lawful.

Wake me up when the sequel starts.

[MikeGriffith]

If your product is all you claim it to be, why would the new law make any difference. I think the law is for those who are full of hype and making outlandish unsubstantiated claims.

[Dan C. Rinnert]

Originally Posted by Jack Duncan

Here's the new FTC rule: You can't use a testimonial or promise results that are not typical...without telling your customers what the typical results are.

Another thing I just thought of... How will they determine what is typical?

Take weight loss, for example. Different people need to lose different weights to reach their specific goals. Jane might want to lose 10 pounds, Joan might need to lose 20 pounds and Jean might need to lose 150 pounds.

If they all buy a certain weight loss product and lose the weight they need to lose, what are the typical results? Does the typical user lose 60 pounds, which is the average of the three? In such a case, who would want to use it? Jane and Joan are going to think that, if the typical user loses 60 pounds, that's too strong a weight loss product for them! And Jean is going to be thinking, I need to lose 150 pounds--60 pounds isn't going to cut it!

I suppose you could say that the typical user reaches their weight loss goals, but that's sounds so vague that I don't know if people would even believe it.

[Thomas]

Originally Posted by LB

If you've ever targeted an ad to someone in the US, or sold to someone in the US...you've done business in the US. The FTC has argued this.

I don't know how other countries view it but the Irish Government (and, thus, likely most, if not all, other E.U. member states too) says that if an American buys something from my website (even if it is hosted in the U.S., or elsewhere) then, since I'm an Irish-based business, registered and established in Ireland, they (my American customer) have done business in Ireland, not the other way round, and Irish commercial law applies to the transaction, and, unless whatever aspect of U.S. law anyone tries to apply to the transaction concurs with Irish law, then it isn't going to matter what the FTC, or anyone else, thinks or says (and, even if it does concur, they're going to have to take any legal action in Ireland, in an Irish Court, under the applicable Irish laws).

I think Clickbank is an obvious exception, as anyone using their service sells their product to Clickbank, and they sell it to the final customer. But then that carries problems too.

Sigh... why isn't anything ever simple?

Tommy.

[Johnny12345]

Some people still seem confused. It's NOT about truth in advertising -- it's about disclosing your "typical" results.

However, that said, I do have some questions...

1) How are marketers supposed to know what the "typical results" are? Will all purchasers be required to report back to the seller so they can compile the government-required statistics?

2) If I start to sell a product and I am -- at that point -- the ONLY user, are my own results then considered "typical"?

3) If my customers report back to me, how do I calculate the typical result? Can I use a weighted average if it seems that some of them tried harder than others?

4) Let's say I offer a money-making info-product for sale. On the first day, I sell 100 units. At that point in time -- before anyone has even had a chance to put it to use -- do I have to state that my "typical result" is ZERO?

Johnny

[igorhelpsyousucceed]

I do not see this as a problem actually.
I see it as a benefit. No more BS sales
letters..hehehe.

Igor

[Kevin AKA Hubcap]

What about the cereal commercials that say "part of a nutritious breakfast" when in fact they're loaded with sugars and salt

I'm just sayin'

[Anomaly1974]

The thing is that ambiguous laws can be enforced arbitrarily. For example, a "reasonable" person does not open a hot cup of coffee and put it (open) in their lap while they are driving down the road. If they do and they get burned, the "reasonable" person admits they made a foolish mistake and moves on. Yet with tort reform, that one exception who thinks it is unreasonable that they purchase a hot cup of coffee and actually GOT a hot cup of coffee and were foolish enough to open it and put it in their lap now wins in court and makes it impossible for anyone else to get a hot cup of coffee.

Take that down to the level of IM and the Internet and look at how sites are managed already. How many instances have their been of people complaining about being banned from sites like Yahoo Answers, You Tube or others due to seemingly innocuous actions taken without any malicious intentions?

Look at all of the freelance sites where they actively buy and sell these accounts and certain "groups" are then hired to "red flag" ads on Craigslist, yahoo answers or other sites in an order to stifle the competition.

Now each time this happens, the feds will step in, shut you down and whether you are right or wrong, your business will be completely shut down while they investigate you, preventing you from making any income during that period of time.

You want more examples? I can show you some but this is not the right forum for it and that section of my web site is not back up yet. Still, I can show you where people have been screwed out of literally everything that they own simply because of real-good/feel-good legislation that was put into place with all good intentions ... but I heard tell about the road leading somewhere being paved with good intentions once ... I think it is now a "Hate Crime" (Where the government defines what the criminal was THINKING????) to mention that book in that regards because I may make some people nervous.

Just my two cents