Expensive Legal Problem for Affiliates

6 replies
Some of you know that eBay has sued DigitalPoint and its owners for 'cookie stuffing' eBay affiliate cookies.

That litigation has been going full-bore for over a year and now some interesting documents are being publicly filed.

eBay's lead attorney, who has only been practicing a dozen years, is charging $700 per hour. New associates about $400 an hour. (Whether eBay's shareholders are getting good value for these costs is another issue.)

I'm estimating attorneys' fees are quickly closing in the 7-figure range, if they are not already there.

On top of that, there is an ongoing grand jury proceeding as the feds look to criminally indict the affiliate marketers.

Bottom line: there seems to be a steady stream of complaints about IM products and tactics. WSOs encourage copyright violations. Products and websites are stolen. How many of those "NEW CPA Methods" are simply scams? Maybe a better question is, are any of them not scams?

In the eBay case, the defendants can either lose everything to attorney's fees. Or, they could default and lose everything in a judgment (that probably will not be discharged in bankruptcy). Then for dessert they may go to prison.

Seriously - is it worth the cheap scam to make a few bucks and destroy your life?

.
#affiliates #expensive #legal #problem
  • Profile picture of the author CNP3
    first, I had NO idea about this!

    secondly, no. it's not worth your credibility EVER to just make more money! That's so stupid on Digital Points end... what were they thinking?
    {{ DiscussionBoard.errors[1858688].message }}
  • Profile picture of the author mmurtha
    Originally Posted by kindsvater View Post


    Bottom line: there seems to be a steady stream of complaints about IM products and tactics. WSOs encourage copyright violations. Products and websites are stolen. How many of those "NEW CPA Methods" are simply scams? Maybe a better question is, are any of them not scams?

    Seriously - is it worth the cheap scam to make a few bucks and destroy your life?

    .
    Bryan,

    The supposedly "New CPA Methods" aren't new at all. They were all pretty much scams when people started implementing them in the past, just as they are today.

    And no, it isn't worth it to me. But then again stuff like that never is. I'd rather come up with a real lagit business with more tangible products like plugins, software, and services.

    I'm not saying I can't get sued, but I think I have less of a chance getting sued going this route.
    {{ DiscussionBoard.errors[1858707].message }}
    • Profile picture of the author Kay King
      So many don't stop to think of the risks they are taking online. Some of the CPA methods I've read made my jaw drop (and, no, I don't use any of them).

      The question in my mind about CPA is when the regulators are going to require those using CPA to make the same disclosure affiliate marketers are required to make.

      With CPA the person filling out a form or accepting a free offer usually has NO idea the he is generating cash for a middleman. At some point, couldn't that come crashing down in new regulations requiring a disclaimer adjacent to the CPA ad?

      "When you provide your personal contact information on this web page the site owner will earn a fee from the advertiser in exchange for providing your personal information to that advertiser".

      Wow - that would go over great, wouldn't it? The disclaimer would be bigger than many of the CPA offers.

      kay
      Signature
      Saving one dog will not change the world - but the world changes forever for that one dog
      ***
      2024 Patriot's Award for Service to Veterans
      {{ DiscussionBoard.errors[1858738].message }}
  • Profile picture of the author Richard Tunnah
    Good post. I think unfortunately (maybe more so recently with the worldwide recession) people are looking for the quick fix or magic bullet and don't stop to think. Building a creditable long term business takes time which many don't like.

    Rich
    {{ DiscussionBoard.errors[1858765].message }}
    • Profile picture of the author adamv
      Originally Posted by CNP3 View Post

      first, I had NO idea about this!

      secondly, no. it's not worth your credibility EVER to just make more money! That's so stupid on Digital Points end... what were they thinking?
      What were they thinking? They were thinking they could get away with it. I guess they were wrong though.
      Signature

      Get a professional voice over for your next audio or video project at an affordable price -- I will record 150 words of text for just $5.

      {{ DiscussionBoard.errors[1858823].message }}
  • Profile picture of the author sbucciarel
    Banned
    I think many marketers go for all this junk because they lack the skills to market legitimately. This looks like a sure fire easy road for them. I mean, how much skill does cookie stuffing take? You just sit back and rake in cash .... right?

    Since they aren't really smart enough to market the right way, they probably aren't smart enough to understand the huge risk they are taking. I say great for the lawsuit. Hope it cleans house.
    {{ DiscussionBoard.errors[1858847].message }}

Trending Topics