The FTC s New Regulations Take Effect Dec. 1st! Network marketers, online bloggers and affiliate marketers take notice! The rules have changed. Be sure you are FTC compliant.
If you’re an online marketer, you need to understand the new rules about endorsements and testimonials that go into effect December 1, 2009. The FTC has come out with new guidelines for online marketers, advertisers and affiliate marketers.
On December 1st the FTC will begin a massive crackdown on Internet advertising and blogging. The effects anyone who uses testimonials, affiliate links, reviews and endorsements.
Remember that the FTC (United States Federal Trade Commission) is trying to control some of the madness and sales hype that goes on unchecked over the Internet. Unfortunately, it also affects the majority of ethical marketers as well.
Because the rules have changed, be sure you comply or you could be in for sanctions, fines or lawsuits.
Here is a brief rundown of what has changed:
1. If you have a personal testimonials, you can t just state results not typical after them anymore. The revised guidelines require proof or substantiation of the results that consumers would typically or generally achieve through use of that product. (Good luck with that!)
2. The FTC now wants all bloggers and websites to disclose free products or payments they have received from companies for reviewing their products. That means that all affiliate links must be clearly marked as something you will make money from. In other words, if there is a relationship between marketer and company, it must be disclosed. All reviews and endorsements must state the compensation you are getting to do them.
3. You have to be transparent about your relationship with people providing endorsements or testimonials. This means that advertisers engaged in online public relations, reaching out to bloggers or by word of mouth social networks, could be liable if the endorsers make false or misleading claims about your product/service. The blogger is also liable (and that is in addition to any liability gained if the relationship was not disclosed). The FTC says advertisers need to provide training and then keep a close eye on the bloggers and other endorsers.
These rules are going to have a major impact on the affiliate marketing industry, because now, if you have affiliates, they could subject you to liability if they don t follow the rules.
And if you are an affiliate, expert, or other person defined as being a sponsored endorsement or testimonial, you could face liability if you do not disclose the nature of your sponsored relationship, or if you say something deceptive in your endorsement, review, or testimonial.
4. The FDA and the FTC are cracking down on people who say their products are helpful in preventing H1N1 Swine Flu, Seasonal Flu and Colds just as strongly as they are with people who say their products cure cancer. I d avoid mentioning any of these things at this time, even if your product really does prevent prevent any of these things.
There are a lot of articles like this one hitting the Web in response to these new Guidelines, many of which may not fit your situation, or may just be giving wrong advice, so I suggest that you read their “Guides Concerning the Use of Endorsements and Testimonials in Advertising” yourself for more information on the FTC website at http://www.ftc.gov/opa/2009/10/endortest.shtm , and perhaps even consult a lawyer if you need to.
Author Resource:
If you need some additional guidance in this area and would like to learn about a great resource for helping online marketers with the new FTC guidelines check out Auto Web Law Pro at http://autoweblaw.network-income.com now! (Yes, this is an affiliate link and yes, it's a great product!)
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