If you are involved with internet marketing and in particular affiliate marketing or if you provide product reviews on the internet then you probably familiar with the uproar about the US Federal Trade Commission’s (FTC) new advertising guidelines.
The guidelines are basically about how the FTC will continue to use a 30-year old act to police the use of testimonials and product endorsements in advertising. The guidelines provide numerous examples of advertisements in general and mentions brochures, TV commercials, infomercials and blogs.
In my very personal opinion, the lawyers, in their inimitable fashion are making it far more scary and complicated than it really is. The concept of misleading or deceptive advertising has been around for a very long time. Why shouldn’t it apply to sales and marketing of products on the internet?
The Bottomline for Affiliate Marketers
If you are conducting affiliate marketing then you are basically…in some way…endorsing products. The fact that you will earn a commission on referred sales is a material connection between you and the product suppler. To the reader of your comment, opinion, or product review you should disclose this fact and your disclosure should be upfront.
Consumer Endorsements
Advertisers using consumers to endorse their product must be able to backup or substantiate any claims made about product effectiveness. A disclaimer that the results are not typical may not be adequate. It is not clear what would be adequate.
The Nitty Gritty Detail
The new FTC Guidelines are related to the application of Section 5 of the FTC Act (15 U.S.C. 45) to the use of endorsements and testimonials in advertising. This act has been around for 30 years but the new guidelines specifically outline how the FTC will apply the act to online (internet) advertising.
The Guidelines are only 12 pages, a little bit legalistic but plain enough for a thinking person to comprehend. I don’t think I need a lawyer to tell me what steps I need to take to protect myself in the internet marketing arena.
The Act is rather more complicated and involves 30 years of precedence and case law. Basically you need to be honest and don’t engage in deceptive advertising.
The FTC Notice
The Text of the new FTC Guidelines
The Act (Unofficial Version udpated June 2007).
Disclaimer
I am not a lawyer. This is merely my considered personal opinion.
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