How the FTC is Impacting Internet Marketing in a Very Good Way

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From the beginnings of ecommerce on the Internet when it could have been compared to the wild, wild west because it was a brand-new medium that people were experimenting with, there was lots of money to be made, but there were also a lot of people who got scammed because of unscrupulous marketers.

In 2009, the FTC released new guidelines that will impact the Internet marketing industry in a positive way because they force marketers to disclose the nature of their relationship with product vendors, and they force marketers to substantiate the claims that they make about product and services that they offer for sale to the public.

The Federal Trade Commission (FTC) has issued newly revised guidelines designed to protect businesses and consumers while maintaining the credibility of the Internet as a medium of commerce. The basic premise of these guidelines is: "Advertising must tell the truth and not mislead consumers. In addition, claims must be substantiated."

Also, if you talk about the merits of a product or service, and you stand to gain something you are required to disclose the nature of the relationship. So, if you are an affiliate marketer sharing reviews of a product that you stand to earn a commission on if visitors purchase is, you must issue a disclaimer informing them of this material relationship.

Testimonials

If you include testimonials on your website where consumers talk about their experience with a particular product or service you must clearly disclose the actual results, the typical results that someone could expect to gain from using the product or service. The new guidelines state that, "advertisements that feature a consumer and convey his or her experience with a product or service as typical when that is not the case will be required to clearly disclose the results that consumers can generally expect."

Review copies

If you have received free or discounted products or services from a vendor and you publish a review of it, you are required to disclose how that the product was provided to you.

The new FTC guidelines impact Internet marketing in a good way because it levels the playing field for those marketers who operate their businesses with integrity, but who were fighting a losing battle against those companies that were getting away with publishing inflated, non-typical results which were misleading the public and causing them to make a lot of money by using false claims.

If you are not using deceptive practices in your marketing then there is really nothing for you to be concerned about. These new guidelines will help to keep everyone honest and keep consumers informed.

These new guidelines also seek to protect consumer's privacy online, require more robust disclosure about business opportunities along with several other issues related to consumer protection. If you are a blogger or an online business person you might want to familiarize yourself with the new guidelines so that you can be sure that your blogs and websites are in compliance.

The new FTC guidelines are just one of the many issues that affect online business owners. For all of the best information about growing your business online, visit http://mcreasite.com/blog.

http://business.ftc.gov/documents/bus28-advertising-and-marketing-internet-rules-road
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