A Quick Tip for Compliance with the New FTC Disclosure Rules
Posted by Kathy Jackson in Affiliate Marketing Monday, 14 December 2009 13:43 13 Comments
On Dec.1, 2009, new Federal Trade Commission (FTC) rules regarding testimonials and endorsements went into effect.
Affiliate marketers who use testimonial advertisements, blogging and celebrity endorsements to promote products must now disclose the fact that they will be financially rewarded if a user clicks on an affiliate link and buys the product being promoted.
Blogs and bloggers are significantly affected by this rule and should take note.
According to the FTC “Guides Concerning the Use of Endorsements and Testimonials in Advertising”, no matter what the tone of a blog post, if the advertiser “receives cash or in-kind payment to review a product,” the post is considered an endorsement” and as such is bound by the new FTC rules of disclosure.
But it’s not JUST blogs … any comment, tweet, post on a FaceBook page or post on a forum, must be accompanied by a disclosure statement.
Every affiliate marketer is asking himself how the new FTC rules will affect his promotion of products. The big one is … how should blog disclosure statements be worded?
Many ideas about disclosure statements have hit the Internet recently.
One that you should check out is from Tim Carter of askthebuilder.com. He developed his own disclosure policy and linked to it his Legal statement, which can be accessed from every page of his website in the footer navigation.
It’s still hard to say how the new FTC rules will affect affiliate marketing.
The rules have been in effect for less than a month and we’ll all have to wait and see. But remember, it’s always the best policy to follow the rules.
Create your disclosure statement, check with your lawyer to make sure that it follows the FTC rules, and follow it.
And please remember, this post is not intended to substitute for legal advice. Be sure to check with your lawyer to assure that your business is in full compliance with the law.
Guides Concerning the Use of Endorsements and Testimonials in Advertising
I think its absurd that the federal goverment has any say so about my opinions on products if i’am an affiliate it shouldn’t matter I Would Never endorse Something if I doubted its value! Andrew H.
it’s is work the best of job
This FTC rule is nonsense. It only applies to certain people, ie, USA people, not everyone else around the world. FTC are only regulating the USA, they have no jurisdiction in any other country.
USA only represents about 20% of those who are online, so what about the other 80% of those online around the world.
Hence this FTC is nonsense.
So there is absolutely no need to claim you’re an affiliate or what ever, this rule will not last long!
It is what it is, frustrating as it might seem.
Instead we can use it as an opportunity to show we have good business ethics and that we can be respected in our online business endeavors.
I believe the real issue is – truth and trust.
It’s an attempt to eliminate deception. Which is well intentioned.
Unfortunately there will always be those without integrity who are more than willing to practice deception.
What we really need is a way to inspire making trust and truth a universal moral! We especially need support from other countries to join us fighting fraud.
…I already know what your thinking. …good luck with that!
Well at least we can be those people leading the way!
Lets face the challenge and display our good integrity.
With highest regards,
Thomas Worzella
Oh Yeah Marketing, Inc.
- A good ole boy from Wisconsin, USA -
PS – Warmest wishes for success in 2010
I think this FTC rule is applies to people not only in the USA but and in other countries too:
- US residents
- US non-resident aliens who conducts trade or business within US,
- US non-resident aliens who generates US source income.
The rule may “APPLY” but how will the FTC enforce it overseas?
FTC ShmeFTC – another inept government agency usually only interested in the big fish. What me worry.
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Affiliate Marketing On The Internet
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Affiliate Marketing On The Internet
Affiliate Marketing is a performance based sales technique used by companies to expand their reach into the internet at low costs. This commission based program allows affiliate marketers to place ads on their websites or other advertising efforts such as email distribution in exchange for payment of a small commission when a sale results.
http://www.onlineuniversalwork.com
How To Make money with affiliate programs Today. Affiliate marketing is the easier and probably the most effective method to make money from the internet. It is basically, a kind of selling technique where potential buyers from your website are directed to the websites of sellers. For every click, the website owner gets a small commission.
http://www.onlineuniversalwork.com
I cannot believe this will work!
I cannot believe this is true!