FTC Ruling on Reviews and Testimonials
Posted by AC Editorial Team in Blog Marketing Monday, 19 October 2009 22:50 13 Comments
We’ve been carefully watching the FTC’s new ruling on endorsements (review sites) and testimonials to determine how it might affect affiliate marketers. When the new ruling first came out, there was talk about an $11,000 fine for those caught out of compliance. But that information was detracted, and now there is no mention of a fine. However, since it IS the FTC making the new guidelines, affiliate marketers should take notice.
The FTC has now published their final guidelines, for the changes that affect Testimonial Advertisements, Bloggers, and Celebrity Endorsements. Here is an excerpt from their site:
"The revised Guides specify that while decisions will be reached on a case-by-case basis, the post of a blogger who receives cash or in-kind payment to review a product is considered an endorsement. Thus, bloggers who make an endorsement must disclose the material connections they share with the seller of the product or service."
Basically, what they’re saying is that if you receive payment of any kind (including free products) for reviewing a product, you need to disclose this fact to your readers. I’m fairly certain that payments made while marketing an affiliate product fall under this category. That’s probably why the ruling was made in the first place.
I haven’t seen this put into place on any blog sites yet to see how the information will be noted, but you should keep your eyes open while reading blogs to see what others are doing, and see what might work best on your blog.
We’ll keep you posted if any new information becomes available.
Thanks Anik for keeping the affiliate community updated on laws governing our industry.
Just more of the government trying to become our master. But, it’s great ACB is keeping all of us informed.
Thanks for the great work ladies and gents !
JD TX
[...] is the original post: Affiliate Classroom Blog » FTC Ruling on Reviews and Testimonials By admin | category: student reviews | tags: been-carefully, came-out, determine-how, ftc, [...]
Wording for a disclaimer placed on such a site would be GREATLY appreciated, if you have any suggestions!
Appreciate the post.
The disclosure stateent:
Should this be displayed for each review post? or a common disclosure page , would suffice ?
[...] FTC Ruling on Reviews and Testimonials There’s a post on the Affiliate Classroom blog that you really don’t want to miss. The writer has been carefully following the developments of the FTC’s new ruling on endorsements (review sites) and testimonials. A quote from the FTC website says, “The revised Guides specify that while decisions will be reached on a case-by-case basis, the post of a blogger who receives cash or in-kind payment to review a product is considered an endorsement. Thus, bloggers who make an endorsement must disclose the material connections they share with the seller of the product or service.” Yep, that likely means if you are promoting a product as an affiliate marketer, you’ll need to disclose that information to your readers. [...]
[...] FTC Ruling on Reviews and Testimonials There’s a post on the Affiliate Classroom blog that you really don’t want to miss. The writer has been carefully following the developments of the FTC’s new ruling on endorsements (review sites) and testimonials. A quote from the FTC website says, “The revised Guides specify that while decisions will be reached on a case-by-case basis, the post of a blogger who receives cash or in-kind payment to review a product is considered an endorsement. Thus, bloggers who make an endorsement must disclose the material connections they share with the seller of the product or service.” Yep, that likely means if you are promoting a product as an affiliate marketer, you’ll need to disclose that information to your readers. [...]
hmm….I wonder if stating it inside terms of use at the bottom of the page would be accepted?
I am new today. Thanks for keeping everyone up to date!
We still have over a month to go before the guidelines are to go into effect. More changes could be forthcoming.
As to whether or not there are blogs that are showing “compliance” with the latest iteration of the guidelines, mine is… Thus far, I am including a link in the footer section. That, like the FTC and its changes, may itself be changed as things progress.
Be Well!
ECS Dave
I have tried to contact your company (Lurn) on several occasions to request a refund and to cancel my membership but none of the numbers in the welcome email I was sent or anywhere else work. They are all wrong numbers.
I need someone to contact me IMMEDIATELY concerning this matter!! I hate having to do it this way but I was being ignored every other way that I tried to contact you.
I NEED THIS RESOLVED RIGHT AWAY!!!
VERY Disappointed!!
Thanks for the advice on the FTC ruling. It has been noticed that must marketers have added the line that they are being compensated.& now I know why.
I have also recently heard that according to the FTC, it is illegal to display your income. From what I hear, they are calling it enticement.
I have not dug deeply into this yet, although I should.
If this is the case, I disagree with it (as if my opinion matters when dealing with the FTC).
I don’t call it enticement, I call it the truth. I am always leary of new offers, and I always investigate thoroughly. However, I would be more willing to take a look at something if they were showing me proof of income, as opposed to telling me how much money you can make.
There are thousands, check that, millions upon millions, even billions of websites, blogs, webinars, videos, screen shots, etc., etc., that have someone’s income displayed.
If displaying your income is illegal, the FTC has one long, grueling war on their hands to find, and shut down everything that has someone’s income displayed.
Thank You-
Matthew Zinda