Legal Concerns

Legal Concerns

  FTC Guidelines changed Dec 1 2009, and applies to anyone doing business on the internet. The Federal Trade Commision act gives the FTC legal juridiction to prevent unfair methods of competition including deceptive acts affecting commerce.

  Affiliate Marketing.

  Affiliate Marketers are required to put the consumers on notice that they are being compensated. To be legally compliant, the notice should ba at  the point of the affiliate link, and be clear to its nature. 

 Consumer Notice: This is a paid affiliate link.

  The legal test is transparency, Is there notice to the consumer that notifies them that there is a financial relationship between the affiliate and the seller. Affiliates and sellers bear the “risk” of any misunderstanding or mis-interpretation, not the consumer.

  If your use affiliate marketing, you should prrotect yourself from rogue affiliates by having a comprehensive affiliate agreement, affiliate training, an express understanding from the affiliate that they have read and will comply with your program rules. This allows you too take actions should they not comply.

Customer Testimonials

 The FTC’s position is that one persons results have no bearing to what another person can expect from the same product. Using The Best Case example is now considered mis-leading , even if it is stated that “Results are not Typical”.

  In cases where the marketer does not know the average results, they will have to rely on satisfaction testimonials, absent of  of developing and using strict scientific methodoligies.

  Marketers can no longer use a result that is not typical of the average consumer.

For More information of FTC Policies visit www.ftc.gov