FTC Guidelines – One More Day
There is just one day left till the new FTC regulations take effect on Dec 1st. Before we get into the bruhaha that has hit internet marketing this just came in and you may want to take advantage of it. From Paul Myers (talkbiz.com) newsletter:
The free information is enough to help you
run a successful launch _even if you don’t buy the product_.
This is some of the most useful content I’ve ever seen. And
you get it all, just for signing up.
Get it here: http://talkbiz.com/r/casestudies.php
The only reason its being released is because of the new regulations that take effect on December 1st. Its all explained in the first video.
As a matter of disclosure I have no relationship with productlaunchformula.com (except that I just opted-in to Jeff Walker’s free info email list).
You may want to take a look now and come back here. If you have been following the story of the new FTC guidelines you may be up to speed, or else we’ll see if we can do that here.
Before I get into my take on what this means for web site owners, be advised my comments are full of generalizations and everything is my opinion. I am supplying links below to several sources regarding the new regulations. Please use them to come to your own conclusions on how to move forward.
When the regulations came out it seemed the question was, how do we move forward? Marketing, or at least perceived successful online marketing tactics were going to have to change drastically.
Additionally, affiliate marketing and online endorsements are addressed in the new rules. Regarding affiliate marketing, who was responsible? The affiliate, or the owner of the program, or both?
Thanks to Is This The End of Affiliate Marketing? | The Michel Fortin Blog, where he posted a link to an interview with an FTC representative, a lot of things were cleared up for me.
It is a long interview, but well worth viewing. Do it now.
I could not think of any burning question that was not addressed in the interview, and a lot of “gray areas” along with specific point-by-point examples were discussed as well. It was excellent. Again, go listen.
What is addressed as pertaining to marketing on the internet:
- When promoting something as an affiliate, you should disclose same.
- If you do a product review you should disclose if you have received anything in return, or can expect anything in return in the future. This includes if you have received the product in turn for doing the review.
- If customer testimonials cannot be proven to be typical of what a customer can expect it should be clearly stated. Additionally you should keep on record an affidavit from that customer that the statements in the testimonial are true. (I would think that a good idea even if the testimonial represents typical results.)
- If your product has an affiliate program, you should provide your affiliates training on what is acceptable along with promotional materials to use that meet the guidelines. You also need some kind of system to monitor what your affiliates are doing as well as have removal of “rogue” affiliates built into the affiliate agreement.
While the campaign at the top of this article is being launched because of the new FTC regulations (his customer testimonials cannot be shown to be typical of the expected results) Jeff Walker also states that he has rebuilt his Product Launch Formula course to include a section on the new FTC regulations.
Additionally is is interesting that he has creatively turned the new regulations into an opportunity. So if you read this in time check it all out, it is no doubt instruction in itself in how he does a product launch.
The way I see things:
- They are going after the big guys, not small fry. As long as we are doing our best to stay above board and they recieve no complaints, we shouldn’t hear form the FTC.
- If you are contacted by the FTC you will get a chance to correct the violation. Without penalty.
- It’s all about perception. If it can be perceived that you are misleading the customer, you may be investigated.
- Offer a guarantee and honor it; its just good business. An ounce of prevention…
What the new regulations really do is put us all on even footing and help the public image. This should be good for the little guy just starting out, and good for internet business in general. Don’t you think?
Resources: (follow the links in these articled as well)
Is This The End of Affiliate Marketing? | The Michel Fortin Blog
What do the “FTC Guides re: the Use of Endorsements and Testimonials” mean for Social Media Marketers?.
http://www.infinitebounty.com/where-is-all-the-thought-leadership-on-the-new-ftc-regulations
http://www.webpronews.com/topnews/2009/10/06/potential-ftc-fines-raise-big-blogging-questions
http://www.webpronews.com/topnews/2009/10/16/key-perspectives-on-the-ftc-blogger-guidelines
Added 12-1-09:
Cliffsnotes for Online Marketers To Avoid FTC Liability From Affiliates and Resellers
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Sire
I reckon the majority of bloggers do the right thing and so won’t have all that much to worry about.
With some luck it will mean that the majority of US bloggers and webmaster will watch their P’s and Q’s when making brash statements, but won’t do a thing to those outside the US.
Steve Warriner
If I understood correctly there is an indirect effect to those outside the U.S., if they are running an affiliate program with members in the U.S.
Those affiliates will still have to operate under the new guidelines. If the program owner acts responsibly with respect to U.S. members then marketing guidelines training and materials that meet the guidelines should be provided to those affiliates.
So it would boil down to:
1. Do they care about their U.S. affiliates?
2. If so, do they provide separate materials for them?
3. To prevent the expense of running it 2 different ways, do they comply?
So it would come down to dollars and maybe a tad of ethics.
Thanks for your comment Sire.
- JEDs
Sire
You would think, that if they are a highly ethical company, they should be providing the same material to affiliates both in and outside of the States.
If they would provide different material to US affiliates just to comply with the new guidelines, I would suggest that there is something not quite right with what they are promoting.