New FTC Guidelines affect Affiliate Marketers and You

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New FTC Guidelines go into effect Dec.1, 2009

The buzz in the media is all about the new Federal Trade Commission (FTC) Guidelines for Bloggers, Affiliate Marketers and Advertisers or Advertisements. There are a lot of misconceptions, and misinformation being published about the new FTC Endorsement and Testimonial Guide. It's important to know what these new Guidelines are that go into effect Dec 1 2009.

Bloggers, and anyone that endorses products, sells or mentions a brand in their writings, or has testimonials on their site, blog, lens, post, make sure you are in Compliance with these new FTC Guidelines.

The Truth Behind the new FTC Guidelines for Affiliate Marketers and others 

This morning I was on a Conference call with Mary Engle , Associate Director for Advertising Practices with the FTC (Federal Trade Commission) Bureau of Consumer Protection . This call was for Media only, where different Journalists, and Media Specialists, from across the country could ask questions about the new Guidelines on Endorsements and Testimonials that go into effect December 1, 2009.

One of the first things Mary stated was that the Media has the information "all wrong!" The misconception has been that the new Guidelines are a new law, they aren't! Section 5 of the Federal Trade Commission Act remains the same (the enforceable Act, the part that has punishment behind it) and these Guidelines were made to close some loop holes that allowed Advertisers to mislead consumers.

Note: The new Guidelines are not law, and have no fines attached to them! The Law is in Section 5; the one that can punish and fine, this is where people can get into trouble.

The FTC is a Consumer Protection Agency

Disclosure and What you must know 

Who is Responsible for Disclosing

The use of Blogs, and other forms of viral marketing (including Squidoo lenses) to reach the consumer has exploded in the last decade. But with this has also come Fraud, and many misleading practices of selling things online. Fake Testimonials, false advertising, Company employees passing themselves off as ordinary consumers in order to promote their company product all have contributed to the need for these new Guidelines.

The #1 offender that prompted the FTC Guidelines was the Weight Loss Industry. We've all seen those ads. The before and after pictures of John Joe Public with a six pack, turned into Mr. Stud with the help of whatever product is being advertised!

Problem is, the general public believed the pill, or whatever it was, transformed this everyday Joe, and not that diet and exercise were part of the equation. Even if that was on the ad somewhere in tiny print the "conception" of the Public was it was because of the Product. And therein lies the problem!



So, who is responsible for Disclosing your affiliation with the Product? Who is responsible for Testimonials about Products?

Note: Advertisers are Responsible for telling you to Disclose! You must disclose if you are receiving compensation or have any material connections to brands in the content that you publish.!

Advertisers and Affiliates will be slow to Implement Disclosures due to Apathy or Confusion 

What do you Predict will happen? Add it here.

We all know people that try to stay compliant with rules, and regulations. We also know of others that don't care, or are ignorant of their role so don't do anything. What do you think will happen with these new FTC Guidelines for Truth in Advertising?

My prediction:

KathyMcGraw, at 12pm on October 14, 2009 predicts:

I predict that at least 1/2 of Squidoo Members will not implement the Disclosures

Reader predictions:

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Steve, at 10am on November 18, 2009 predicts:

I predict that some will comply and some won't. Especially if there is no penalty or accountability being enforced.

I am curious as to the acceptance or nonacceptance of cloaking affiliate links. In all honesty of disclosure you shouldn't need to cloak or redirect.

But there are still unsavory characters out there stealing affiliate commissions.

AddaptAbilities, at 1am on November 17, 2009 predicts:

I predict that advertisers will go on as before until someone gets caught and an example is made of them.

Sylviane_Nuccio, at 9pm on November 14, 2009 predicts:

This is a very good lens. We are all affected by this new law. Unfortunately we come down to this because of so many fraudulent advertising out there.

lakeerieartists, at 7am on November 13, 2009 predicts:

That it will only take a few minutes to comply to these guidelines. Better get going.

keries, at 5am on November 13, 2009 predicts:

Those in countries outside US and countries with any sort of relationship with the US will become havens for fraudsters to continue what they are now doing.

aj2008, at 4am on November 13, 2009 predicts:

That most people will spend more time discussing this than the couple of minutes it will take to follow Squidoo's lead and just make sure one line shows on your blog, webpage etc to make sure you comply.

abiz, at 1am on October 29, 2009 predicts:

this is a real hard issue one one hand to stop the true fraud it is great but it can become rather harmful to new people and many others its a no win for those who try following the rules

Pastiche, at 9am on October 27, 2009 predicts:

I disclose on my web sites and blogs. If Squidoo discloses I wonder if each lens must also include a statement? If I endorse a product, I include and disclose it's my opinion/experience.

LoKackl, at 9am on October 25, 2009 predicts:

I predict lots of time-consuming study only to find out, finally, that Squidoo publishes the necessary information on every lens.

TheHealthGuy, at 4pm on October 23, 2009 predicts:

I predict that "Big Brother" will strangle marketers and completely destroy any ability for the little guy to market products on or offline and for what? To save ignorant fools who'd believe elephants can dance Salsa in 3 easy lessons from spending $30? I'm sorry. If someone is stupid enough to believe some of the crap extolled on or offline then - bummer! But ... The Gov gets way to carried away with itself. It's like the "Spam" issue. I get spam. Hell, I have spammers using some of MY email addresses to send their crap and it comes to ME using MY address as a "cloaking" tactic! But, can I send an email to an acquaintence without their permission? No! Because if they are to damn lazy to hit the delete button and get on with life but instead hit the "report as spam" button I could face loss of my ISP, fines, prison or all 3! Way to much Gov micro-managing - yet our cities are full of illegal immigrants, gang bangers, dope dealers, rapists and pedophiles. But DANG! Let's make sure that "Studpid Sally" doesn't go broke buying a $30 bottle of diet pills!

thefluffanutta, at 11am on October 20, 2009 predicts:

Lensmasters don't need to do anything. There's a disclosure at the bottom of every lens, put there automatically by Squidoo. Have fun.

sandyspider, at 9am on October 20, 2009 predicts:

I agree. I think most members won't even read the FTC guidelines.

 
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What others are saying about new FTC Guidlenes 

FTC Publishes Final Guides Governing Endorsements, Testimonials
The notice incorporates several changes to the FTC's Guides Concerning the Use of Endorsements and Testimonials in Advertising, which address endorsements by consumers, experts, organizations, and celebrities, as well as the disclosure ... The revised Guides also add new examples to illustrate the long standing principle that ?material connections? (sometimes payments or free products) between advertisers and endorsers ? connections that consumers would not expect ? must ...
New FTC Guidelines on endorsements and testimonials… Free webinar ...
Before you plunk down one single dollar on any product or service that's promising you protection against the new FTC guidelines on endorsements and testimonials you need to attend this FR3E webinar Thursday, November 19th. ...
Endorsements, Testimonials, Bloggers and The FTC | BetterNetworker.com
With December 1, 2009 just around the corner? Alot of attention has been placed on the new FTC Guidelines for Endorsements and Testimonials and their affect on bloggers and marketers. This has created a "hot new market" for all sorts of ...
Q&A: FTC Blogger Guidelines «MAMA'S A ROLLING STONE
On October 5, the Federal Trade Commission published their Final Guides Governing Endorsements, Testimonials. According to the FTC, the publication is a set of guidelines that advertisers must follow in order to keep their endorsement and testimonial ads in line with ... Jennifer Taggart is an attorney with 15 years experience in consumer law. Jennifer has written on the new FTC guidelines for a variety of sources. Jennifer also put together a free webinar on FTC Basics. ...
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Do you think these new Guidelines are a good idea or a bad one 

Many people will get upset over the idea of complying. Do you think this is a good idea or a bad one to have Bloggers and writers disclose their affiliation with a company? Or have to verify every testimonial?

How do you see this affecting the Public? And will you comply?

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I don't think it will do anything to protect the Public.

poddys says:

I am happy to comply too, the products that I advertise and/or review on my sites are ones that I trust. The problem is that half the time the public don't know what they are doing, and con-men will still use the same old tricks to deceive them.

Posted November 13, 2009

aj2008 says:

Yes, I will comply because it is no big deal, but I dont think it will do much to protect the public, because they probably dont read half of what you write anyway! People scan, they rarely take in a lot of the detail and they certainly wont be looking for a tiny line somewhere. Look how many Lensmasters have not yet realised that Squidoo has put a declaration on the bottom of every page.

Posted November 13, 2009

Pukeko says:

Sadly, I think honest people will continue to be honest, and dishonest will continue to be dishonest, so the change will have little impact.

Posted October 25, 2009

The_Party_Animal says:

I do not think a consumer will really care to be honest - not many ever read the fine print.

Posted October 16, 2009

boutiqueshops says:

It's just more meaningless regulation until the FTC says what they mean and means what they say. Writing blanket guidelines is not the answer. Only the "people in good faith" are worrying to death; the advertisers & affiliates in question could care less. What constitutes an "endorsement" in the eyes of the FTC? Do these guidelines seriously apply to Tupperware consultants & Avon representatives? They need to go after the real culprits who are causing the issues and stop with the shotgun style problem-solving. I sell, I don't endorse.

Posted October 14, 2009

It's about time someone started cleaning up the Web from all the Fraud.

Greekgeek says:

I don't see anything wrong with forcing people to disclose they're earning money for products they promote. If they can't admit that without damaging their ability to convince people something is worth having, then mmmmmaybe they're not really sincere or telling the truth about what they're trying to sell!
And thanks to Squidoo for adding the necessary verbiage to every page, sparing us the tedium of doing so. :)

Posted November 22, 2009

mulberry says:

I think it's good and I agree it's not a new or additional law. It's merely making sure all of us understand our responsibility.

Posted October 28, 2009

0ctavias0fferings says:

It's a great idea, maybe it will stop so many people falling for all the 'false' claims but I'm not sure that it's really going to help. Too little too late is the phrase which springs to mind because the web is flooded with far too many of these scam ideas.

Posted October 16, 2009

KathyMcGraw says:

I think this could help if people will comply. But mostly I think it is a way to hold Bloggers and Affiliate Marketers to some sort of standards for truth in Advertising!

Posted October 14, 2009

 

Q & A from FTC with Link to Guidelines 

The new Guidelines are to supplement, and close loopholes in the laws against deceptive and unfair business practices.

There were several questions that were posed during the Conference Call. Here are some of them, as well as a link to the FTC Guidelines Click here to read them. .



If you have an Amazon Affiliate Link, or a Zazzle one (as examples), yes you have to disclose.
  • Q- Whose responsibility is it to have the Disclosure
    A- It is the Advertisers responsibility to inform Affiliate Marketers to put a Disclosure

    Q- Will the FTC be searching out individual Bloggers and Affiliate Marketers for compliance?
    A- The FTC will be focusing on the Advertisers, not individual bloggers

    Q- Will Companies have to change their testimonials to be in Compliance
    A- They must be able to prove their claims

    Q- Do you have to disclose if you are paid to blog or Tweet
    A- Yes!

    Q-What if a Blogger is given a Product to review and writes about it. Do they have to disclose?
    A- If there was no expectation for a favorable review, you do not have to disclose. But if you get several products from same company and you always write a favorable review-yes.

    **** There are several Gray areas in Guidelines. The FTC is not going after these, only the Black and White areas. If you are paid for endorsing a product, that is Black and White and you need to Disclose!



    Q- What about ads on a Blog Site?
    A- "Google Ad Sense doesn't matter-it is not a factor in the equation."

    Q-What about Testimonials about income earned from a product ?
    A-"The revised guidelines took away the safe harbor, meaning Advertisers need to have support for the claim."

    Example: I took Course X and made $1,000. and someone else says, I took Course and made $10,000. The Disclosure has to say what most people can expect to earn from taking the course. The "average" person!



    Q- Do all the Advertisers and People with websites have to re-do all their stuff before Dec.1st ?
    A- "People in Good Faith (working on it) don't need to worry."

    Q- How about Real Estate Agents that claim using products, or services, get them certain results.
    A- They must be "Truthful, honest statements" and they have to be able to substantiate it.

    Q- What about on a Blog where a Commenter leaves an unsolicited claim?
    A- If the claim is unsolicited, then probably nothing. It depends on who has "editorial control."

What needs to be in the Disclosure and how do you make one 

"Bloggers who make an endorsement, testimonial, or have a material connection to brands (products or services) you put in your content must disclose their relationship. So, how do you do this? Since this is so new there will be several options available as time goes on. Remember even on Twitter with 140 characters you must comply.

What is a Disclosure is something I noticed this morning not everyone understood. Basically, as it relates to us, is it is being transparent in your relationship and the compensation you receive from someone else ex:Affiliate Marketers.

If you have a Blog and want to be in compliance this site can help you generate Your Disclosure Policy. You can put it in your About Page if you choose.It is a fill in the blanks, asking you about the kind of Blog you have, about advertisements, etc. And after you click Finish, a Policy will be generated to fit your answers. I suggest you modify this as it is full of legalize, but it will give you an idea of a Disclosure. Keep it simple usually works best.

Click here to generate your own Blogging Disclosure Policy This should do it but appears to mostly protect the Advertisers.



Affiliate Marketers get paid-that's a fact! I know it, and you know it, and most of the public already knows it, so it shouldn't be that hard to "tell them." Honesty in your relationships is what it's all about. And no, it doesn't have to be a huge Attorney drawn up Disclosure. Just something that lets your readers know that that you will make something for that Amazon book you're spotlighting.

Make your disclosure fit your personality, or your Audiences. Say I am selling stuff to make a Dream Catcher on Amazon. I can say somewhere in there that if they buy it I might get enough money to make my own Dream Catcher-and yep I'm in compliance! I was truthful, and transparent. That's all this is.

Important Update for Squidoo Lenses ONLY 

Affliate Disclosure



If you are only writing on Squidoo, TheFluffanutta has pointed out that Squidoo already has a disclosure for us. It appears to be in compliance, but once again it is tiny verbiage at the bottom where others can't see it, and it doesn't say anything about your recommendations, testimonials, etc. Only the monetary part of working with an Affiliate.

Look at the very bottom of the page, the last sentence!

Facebook, Twitter and Blogs that need a short easy FTC Compliant Disclosure 

CMP.ly a Possible Solution to Disclosure

I saw this website, and was thinking of everyone on Facebook and Twitter, let alone Blogs that want an easy solution to the new FTC Guidelines. This appears (as of 10/28/09) to be at least one answer, especially to how to put a disclosure in a 140 character site like Twitter.

 

Comments on the FTC Guidelines and Feedback are welcome here 

Will these new FTC Guidelines on Endorsements and Testimonials have any effect on you? There are so many questions people have, feel free to leave yours here, or just a comment.

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by KathyMcGraw

Veteran, Former Peace Corps Volunteer, REALTOR® in So CAL, Artist, Writer, Photographer.


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