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Can someone clarify the FTC guidelines when it comes to disclosures?

by dsiomtw
15 replies
OK so I must admit I just don't get the latest FTC guidelines when it comes to disclosures and endorsements. I understand and agree that those fake news sites and bogus review sites with 100% made up content/lies are totally deceptive. I understand the guidelines when it comes to testimonials and "typical results". But do I really need to disclose that I might get paid each and every time I recommend, endorse or link to anything from my site?? Or are these guidelines and "laws" (??) really only put in to place so they have something to nail the really deceptive sites with? I mean, it just doesn't make sense that I would have to disclose that I might get paid next to every single recommendation or link on my website, nor is it practical. I see some sites are doing this, and a lot aren't. So what's the general consensus?
#clarify #disclosures #ftc #guidelines
  • Profile picture of the author Torreylee
    Originally Posted by dsiomtw View Post

    OK so I must admit I just don't get the latest FTC guidelines when it comes to disclosures and endorsements. I understand and agree that those fake news sites and bogus review sites with 100% made up content/lies are totally deceptive. I understand the guidelines when it comes to testimonials and "typical results". But do I really need to disclose that I might get paid each and every time I recommend, endorse or link to anything from my site?? Or are these guidelines and "laws" (??) really only put in to place so they have something to nail the really deceptive sites with? I mean, it just doesn't make sense that I would have to disclose that I might get paid next to every single recommendation or link on my website, nor is it practical. I see some sites are doing this, and a lot aren't. So what's the general consensus?
    It's not being enforced across the board, but I abide by it because it CAN be used against you if you get in their crosshairs.
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  • Profile picture of the author David Bryant
    You should disclose the fact that you use affiliate links within your Terms and Conditions/Disclaimer page. That is what those legal pages are for on a website.

    However, putting them beside of each link is a ridiculous notion. I remember reading a post here a few weeks ago where someone was being facetious about having to do such a thing, but they were only joking - of course.

    I would really like to see an example of someone putting that into practice though
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    • Profile picture of the author dsiomtw
      Originally Posted by David Bryant View Post

      You should disclose the fact that you use affiliate links within your Terms and Conditions/Disclaimer page. That is what those legal pages are for on a website.
      Are you sure??

      According to the FTC guidelines, there are four basic requirements for disclosures. All disclosures must be: Frequent, Clear, Conspicuous, and Requiring No Action.

      They clearly state that disclosures only in T&C or Disclaimers pages are NOT enough, because the majority of people do not read these pages and thus a disclosure hidden on one of these pages is not frequent, clear and/or conspicuous.
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  • Profile picture of the author David Bryant
    The guidelines written focus on deceptive practices. Providing an affiliate link, or supporting a paid link on a website do not fall under this blanket, so long as you aren't trying to deceive. If you are posting a blatantly false review about a product, then you may end up bumping heads with the FTC one day.

    However, conspicuous doesn't mean that you have to note a disclaimer beside of every paid or affiliate link on your site. I have not interpreted it this way, nor have my lawyers. If you wish to play safely while still following all guidelines to the strictest interpretation, then a minimum would be to post a disclaimer message in the footer or somewhere on each page of your website.

    At the moment, and until I'm informed otherwise, I will continue business as usual. I have no need to fear the FTC in any of my business practices. I have noted a disclaimer on affiliate and paid links prominently on my disclaimer page, which is fully conspicuous and located in both in the header menu and footer of my websites.
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    • Profile picture of the author dsiomtw
      Originally Posted by David Bryant View Post

      The guidelines written focus on deceptive practices. Providing an affiliate link, or supporting a paid link on a website do not fall under this blanket, so long as you aren't trying to deceive. If you are posting a blatantly false review about a product, then you may end up bumping heads with the FTC one day.

      However, conspicuous doesn't mean that you have to note a disclaimer beside of every paid or affiliate link on your site. I have not interpreted it this way, nor have my lawyers. If you wish to play safely while still following all guidelines to the strictest interpretation, then a minimum would be to post a disclaimer message in the footer or somewhere on each page of your website.

      At the moment, and until I'm informed otherwise, I will continue business as usual. I have no need to fear the FTC in any of my business practices. I have noted a disclaimer on affiliate and paid links prominently on my disclaimer page, which is fully conspicuous and located in both in the header menu and footer of my websites.
      David, I agree that in practice what you've said and what you're doing should be enough - as long as your entire site isn't based on deception the way fake news sites and flogs are.

      However, with that being said, the FTC guidelines are very general and "loose" and technically you are not in compliance with the guidelines. For example on their FAQ page at the link below they address several of the issues we're discussing and, among other things, they state that disclaimers on T&C or disclaimer pages are not enough, and that affiliate links must be disclosed clearly and conspicuously on ALL pages that contain a recommendation, endorsement, etc.

      Check out the page below and look for the question that says "I’m an affiliate marketer with links to an online retailer on my website. When people click on those links and buy something from the retailer, I earn a commission. What do I have to disclose? Where should the disclosure be?" and others like it...

      The FTC's Revised Endorsement Guides: What People are Asking

      I agree you shouldn't have to worry about it if you're not trying to deceive people, but that's exactly what I was wondering about. It seems their guidelines and the "laws" are very broad and it wouldn't be practical for any legitimate marketer to follow them, but they purposely make the rules very broad so that it's easy to nail those that are being deceptive when necessary...??
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      • Profile picture of the author donhx
        Here is what I put on all my sites. It's a footer link to a separate page. No, I am not a lawyer.


        Federal Trade Commission Disclosure

        Disclosure of Material Connection: Review books and other products and services mentioned on YourSiteNameHere.com may have been provided to us at no cost by suppliers seeking endorsements or testimonials. Also, some of the links in the posts on this site are “affiliate links” which means we receive a commission when you make purchases. However, in all cases we only recommend books, products or services that we believe will add value to the lives of our readers. This is disclosed in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”
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  • Profile picture of the author dsiomtw
    Again, not trying to beat a dead horse or be argumentative but according to the FTC guidelines a footer link to a disclosure page is not nearly enough and is not considered to be compliant. I guess since this is what most people seem to be doing, the answer to my original question is that most people just don't worry about being "compliant" since they aren't doing anything that is totally deceptive or likely to end up on the FTC's radar.
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    • Profile picture of the author donhx
      Originally Posted by dsiomtw View Post

      Again, not trying to beat a dead horse or be argumentative but according to the FTC guidelines a footer link to a disclosure page is not nearly enough and is not considered to be compliant. I guess since this is what most people seem to be doing, the answer to my original question is that most people just don't worry about being "compliant" since they aren't doing anything that is totally deceptive or likely to end up on the FTC's radar.
      Disclosure is disclosure. Most sites don't disclose at all, and the FTC will go after them first. Then the FTC can come after the millions of us who at least have a link.

      Here is a quote directly from the FTC Guide that is significant for everyone:

      "
      Has the FTC been getting complaints about deceptive blogs?
      No. As it happens, many bloggers and advertisers already are disclosing their ties to each other. Industry associations and self-regulatory groups advocate disclosure, too.
      I’ve read that bloggers who don’t comply with the Guides can be fined $11,000? Is that true?
      No. The press reports that said that were wrong. There is no fine for not complying with an FTC guide.
      Are you monitoring bloggers?
      We’re not monitoring bloggers and we have no plans to. If concerns about possible violations of the FTC Act come to our attention, we’ll evaluate them case by case. If law enforcement becomes necessary, our focus will be advertisers, not endorsers – just as it’s always been."


      The FTC

      This makes nit-picking about how the disclosure is addressed (on each page, in link, etc) kind of irrelevant.


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    • Profile picture of the author Roaddog
      Just do what the Fortune 500's do.

      Either make it so small you can't read it, go by so fast you can't read it...or have an auctioneer come in in and read it so fast, you can't understand it...but hey... it's there.
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  • Profile picture of the author David Bryant
    These guidelines in their entirety are based on deceptive practices. If there are none, then there are no regulations to enforce.

    I've read the page that you linked to, and it helps to offer a clearer interpretation of what the FTC has put forth. Although, it also implies a less stringent application of a disclosure than you are eluding to here - very clearly with my interpretation.

    Even the example that you cited doesn't say that having a clearly stated disclosure under a clearly labeled link isn't acceptable. It says that burying your disclosure in an obscure way in a nondescript page, or behind a poorly labeled hyperlink would constitute an inconspicuous posting.

    Whether I'm technically within guidelines, I'll leave up to my lawyers. I am familiar with the FTC as an entity, and I'm aware of their influence in consumer protection.

    They revised their laws to incorporate social media - they were 30 years old. The guidelines are 'loose' so that they can try to take action against those whom are taking advantage of the consumer in a deceptive way - my opinion.

    It's important to have a disclosure to protect your business, and to protect the consumer. But to go as far as to say that you need to have a visible disclaimer within content is going bit overboard. A consumer can take the time to read a website's operating documents before they interact with said website. That is their due diligence.

    If no authority can deduct that you've intentionally attempted to deceive a consumer, then you have nothing to worry about. Provide the necessary disclosures on your site in the appropriate place for them, where every consumer knows where to find them, and don't worry about the FTC - if you are conducting business honestly and lawfully.

    These are just my opinions, which are based on the interpretations of my council. Hire your own if you feel you need expert guidance. I do suggest that you do.
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  • Profile picture of the author TheRazor55
    All you gotta say is: "Listen up, some of the links you may click on this site might lead to me getting paid a commission down the line. I am an affiliate marketer and that's how I pay for this site and put food on the table."

    Pronto, you're FTC proof.
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  • Profile picture of the author dsiomtw
    2 interesting tidbits from the page I linked to, that specifically say that what several of you are suggesting is not sufficient or "compliant". Just FYI ...

    Would a single disclosure [snip] be enough?

    A single disclosure doesn’t really do it because people visiting your site might read individual reviews or watch individual videos without seeing the disclosure on your home page.
    Would a link that says DISCLOSURE, LEGAL, or something like that be sufficient disclosure?

    No. A link isn’t likely to be sufficient. How often do you click on those links when you visit someone else’s site? If you provide the information as part of your message, your audience is less likely to miss it.
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    • Profile picture of the author David Bryant
      Originally Posted by dsiomtw View Post

      2 interesting tidbits from the page I linked to, that specifically say that what several of you are suggesting is not sufficient or "compliant". Just FYI ...
      I've highlighted the areas in the sentences below that are the most important to consider.

      Where you see absolutes that support your interpretation, I see an intentional use of language to avoid restricting/limiting the way that you have to present a disclosure.

      In the first quote, the paragraph is very specific to suggest the same notion that I pointed out in one of my posts above... that you can't simply place a disclosure anywhere on your site in some secluded obscure corner.

      It is not saying that you can't have a single page with a disclosure, it is saying that you can't have a review of a product that has a disclosure, and assume that because it exists, that every other review will be covered by it - as an example.

      In the second quote, "ISN'T LIKELY" to be sufficient. Interesting, now why would they even bother to say that if it isn't allowed for you to do so? I'll let you consider the implications.

      Remember who the FTC is, what they do, and what authority they actually have. This documentation has been gone over by legal council for many businesses that conduct business in the U.S. If there was a solid and direct guideline for how to properly present your disclosure (in the way that you are interpreting this) then it would be mainstream, and most everyone would agree on a method for correct application.

      You keep thinking that people are overlooking something, but they are NOT. You are overlooking details, to whatever end. There is nothing wrong with your opinion at all, or in the way that you want to run your business. It is just that 'seeing it your way' will take some better language from the FTC for me.

      Would a single disclosure [snip] be enough?

      A single disclosure doesn't really do it because people visiting your site might read individual reviews or watch individual videos without seeing the disclosure on your home page.
      Would a link that says DISCLOSURE, LEGAL, or something like that be sufficient disclosure?

      No. A link isn't likely to be sufficient. How often do you click on those links when you visit someone else's site? If you provide the information as part of your message, your audience is less likely to miss it.
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  • Profile picture of the author TPFLegionaire
    That post is fortuitous. I have just come across a new start up that is free and will help you solve your disclosures dilemas.

    Check them out : CMP.ly a simple solution for required social media disclosures
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  • Profile picture of the author kindsvater
    You need to sufficiently and conspicuously disclose information a consumer needs in evaluating the credibility of your recommendations. Whether the disclosure is made one place, or several, depends on your website. There is no "one size fits all" solution.
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