15 Comments on How do the new FTC guidelines affect affiliate marketing?

Mitch on Tue, 6th Oct 2009 5:01 pm


Hi John,

I wrote about this on my finance blog.

The quick take from me is that it won’t affect us much at all. I read the news story where the FTC acknowledged that they’ve set up something they really can’t handle because they’re not increasing staff, and there’s way too many blogs for them to check. So, though they can fine blogs, they’re mainly going after advertisers.

As for going after affiliate marketers and the products we support, I don’t think we have many issues with that either. The way I understand it, you’ll have two worries.

One, if you’ve just copied what someone else wrote and posted it on your blog, which means you didn’t really do an honest review, you could get dinged for that as it being a dishonest review.

Two, if you’re paid to do a review, even if it’s a free gift, without disclosing it, then you’ll get dinged also. This means they’d have to prove that you got paid by someone, which would be easy if you were sent a check or got paid electronically. It also means they’d have to prove that you got something for free without purchasing it, which would be almost impossible to prove.

I have gotten free stuff, and, as you’ve seen on my blog, I’ve always disclosed it. I don’t get the good stuff, though; I’d welcome some. And, on my business blog, I even gave one thing I got free a barely passing rating, which is truth in advertising, and disclosed I got it for free.

So, overall, it’s a stupid law mainly because it’s unenforceable. It may set up a lot of whistleblowers, but I figure the FTC will only waste its time if it gets multiple complaints about a site or product.

In our case, if we got that kind of attention as far as the numbers go, I wouldn’t be upset.
Mitch´s last blog ..Archie Got Married! Or Did He?

Kris Malena on Tue, 6th Oct 2009 9:48 pm


These guidelines will only hurt the little guy. Celebrities and such will find a loophole in the law. You know what I mean like contribute some money to a re-election campaign or whatever
Kris Malena´s last blog ..How to Build A Big List of Buyers Webinar

John Dilbeck on Wed, 7th Oct 2009 6:18 am


Good morning, Mitch.

I think you’re probably right in your estimate of how these new guidelines will affect folks like us. Probably not much, as long as we’re transparent and honest.

I think it’s mainly aimed at the big name bloggers and celebrities who are riding the money train and don’t always disclose that fact.

It’s one thing for someone to give me a free ebook to read and quite another for someone to get a free car.

Still, I think they’re moving in the right direction. At one time, it was difficult to impossible to tell the difference between editorial and advertising copy in newspapers. Because of the FTC, now ads that look like editorial copy must state that they are ads.

I don’t consider myself a journalist and I’ve never claimed to be. So, I don’t think anyone would be confused about what I write about.

Some of it is informational and some is promotional. None of it is sponsored, on this blog.

So, I don’t see how the new guidelines will affect me, other than making sure I’m transparent and honest, which I’ve always tried to be.

I did add a couple of paragraphs to my Disclaimers page, but don’t know if it was necessary.

Thanks for your opinion, Mitch.

Act on your dream!

JD

John Dilbeck on Wed, 7th Oct 2009 6:20 am


Good morning, Kris.

Welcome to our discussions.

I don’t see how they will hurt the little guy. Can you give an example of what you’re thinking?

Act on your dream!

JD

John Dilbeck on Thu, 8th Oct 2009 9:32 am


Good morning.

I had another thought about this topic earlier this morning. These new FTC rulings may affect you if you don’t write all your own content.

For example, if you regularly use PLR articles and other content for your blogs and websites, or if you are a member of an affiliate program that offers content that is pre-written, you may want to be aware of the new guidelines concerning testimonials and misleading or false claims.

If you are promoting something that comes with its own sales page that you can add to your sites, the same thing applies.

All testimonials must be truthful

Now, I don’t even understand why this has to be pointed out, but we all know that there are many testimonial claims out there that are just bald-faced lies. You know it. I know it. The person who wrote it knows it.

(The FTC knows it, too.)

But, those claims could fly under the radar by saying the results are not typical.

This no longer works.

Are you promoting something based on a lie?

If your PLR contents, sales pages, or other information that you are responsible for contains misleading testimonials and false claims, now you are liable for it.

Why not tell the truth?

I don’t understand why anyone would want to promote anything that depended upon a lie just to make a buck, but some people do it.

Is it ethical? Of course not.

Is it honest? Nope.

Should you be punished for doing it. Yes, I think so.

Create your own content

So, why don’t you stop taking the easy way out and start creating your own content?

I don’t buy any PLR content and I don’t use sales pages created by someone else. I create all of my own content.

I didn’t use to do this. Way back in the 20th century, I took the easy way out and used some things that other people wrote, but who licensed me to put my name on it.

I knew I should not be doing it and it still leaves a bad taste in my mouth when I think about it a decade later.

When I realized that I did not want to be known for what someone else wrote, no matter how bad or good it was, I stopped doing it and removed it from all my sites.

It was a good lesson for me.

So, even though I still have not been able to download the FTC guidelines pdf file, yet, I think it is incumbent on all of us who want to build a great reputation to be sure we create our own content, tell the truth, be transparent about our financial motives and incentives, and be sure we actually stand behind the information we present on our websites and blogs.

At least that’s my take on it this morning, after only one cup of coffee.

Remember, I am not a lawyer and this is not legal advice. It’s just my opinion.

What do you think?

Do you agree or disagree? I’m interested in your opinions.

Act on your dream!

JD

Peter Davies on Mon, 12th Oct 2009 5:32 am


I’ve got a copy of the whole report on my desktop though i need to set aside a few hours to read it as its full of legal jargon

John Dilbeck on Mon, 12th Oct 2009 7:16 am


Good morning, Peter.

I finally managed to download the PDF file this morning. I tried multiple times last week and never managed to receive more than 35 – 38 KB of the file (about 10%).

The file is 81 pages long and I’m currently on page 19.

You’re right; it’s full of legal jargon, but at least now I can see it for myself.

After you’ve had a chance to read it and form any opinions, I’d enjoy hearing what you think.

Thanks for joining the discussion.

Act on your dream!

JD

website designer toronto on Wed, 14th Oct 2009 12:58 am


The total lack of clarity in these guidelines is really aggravating. It would have been nice if they had included any idea of what they’re expecting in terms of disclosure, if they’re going to threaten to fine people.

For bloggers that don’t receive any monetary compensation, but just get sent free products to review without any strings attached, do you guys think it would be acceptable to just say, “Company X sent me a free copy of this widget to review?” That’s full disclosure, in my mind, especially if the review is written honestly. Do you think that’ll be enough for the FTC?

John Dilbeck on Wed, 14th Oct 2009 8:45 am


Good morning, w.

I think it would depend upon whether or not the free product is the only compensation. If the article also included affiliate links, then I think you’d need to mention that, too. That’s one of the things I’m not sure of at this point.

I’m not a lawyer, so don’t take my advice on this.

It is bothersome that the examples in their text don’t give any clear statements that would suffice for full disclosure.

I think, and this is only my opinion, that the FTC is more interested in celebrity endorsements and honest testimonials than in a blogger who writes a review of a free book or printer, or other low-cost item.

They also want to close the loop-hole about testimonials that don’t match typical results.

We’ll just have to wait and see if the FTC provides further clarification or if any lawyers join these discussions.

After reading their PDF text, I’m not quite as concerned as I was, but I still think there are things that all marketers and advertisers have to be aware of.

Act on your dream!

JD

Make Quick Money on Thu, 15th Oct 2009 12:15 am


Hey John,

I think that the blogs that are transparent in the business they conduct with the affiliate linkage, will have nothing to worry about as it will eventually increase the credibility of their blog.

John Dilbeck on Sat, 17th Oct 2009 4:39 pm


Good afternoon, M.Q.M.

I think you’re right. As long as they are careful with claims, testimonials, and fully disclose any financial considerations, I don’t think there will be a problem, and I agree that it should increase credibility, too.

However, I’m not sure what the FTC is going to require when it comes to affiliate links. Will we have to disclose each of them or will a disclaimer page be sufficient? Or, will we need to put a statement on all pages of our site?

We’ll see.

Act on your dream!

JD

Mitch on Sat, 17th Oct 2009 4:47 pm


Hi John,

Don’t know if you saw it this week, but a representative from the FTC came out and said they weren’t going to be going after blog owners for anything. She said that they would be going after advertisers who do bad practices such as creating their own blogs to advertise their products under the guise of being someone else. And she did add that only if someone was getting free stuff on a very consistent basis from one company, such that it was more like income than an every once in awhile gift, that they would consider that as someone being paid for endorsements rather than as a legitimate business venture.

So, I think we’re fine. Then again, I don’t think either one of us was all that worried about it anyway.
Mitch´s last blog ..How Ready Are You To Give Up Your Rights?

John Dilbeck on Sun, 18th Oct 2009 6:43 am


Good morning, Mitch.

You’re right, I didn’t see that.

If that representative is correct, and her statements really reflected the FTC’s intent, then I agree with you.

Going after advertisers who misrepresent what they’re doing is a good idea.

Going after company shills is a good idea.

Going after bloggers who earn a few dollars here and there is not a good thing.

You’re also right in that I was never too worried about this. I do want to be both honest and transparent, and I want to make sure that I don’t inadvertently do anything illegal.

I’ll probably opt more for disclosure when the situation arises.

Thanks for the update.

Act on your dream!

JD

Mark Sony on Wed, 21st Oct 2009 10:17 am


I always thought EU is to restrictive, but this time it is us. Thank god there is no such guidelines in EU yet.

Meet People on Fri, 23rd Oct 2009 2:20 pm


I agree that it won’t affect those who are transparent and do their business and marketing through ethical methods. And we all know what those are…