New FTC Guidelines affect Affiliate Marketers and You
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New FTC Guidelines went 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 went 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.
Updated on 12/16/09 with some humorous disclosures from Louis Gray
Index
- The Truth Behind the new FTC Guidelines for Affiliate Marketers and others
- The FTC is a Consumer Protection Agency
- Disclosure and What you must know
- Advertisers and Affiliates will be slow to Implement Disclosures due to Apathy or Confusion
- What others are saying about new FTC Guidlenes
- Do you think these new Guidelines are a good idea or a bad one
- Q & A from FTC with Link to Guidelines
- What needs to be in the Disclosure and how do you make one
- Important Update for Squidoo Lenses ONLY
- Facebook, Twitter and Blogs that need a short easy FTC Compliant Disclosure
- Are these Guidelines Confusing
- Humor goes a long way
- Test your Knowledge of these Guidlines with this Quiz
- Comments on the FTC Guidelines and Feedback are welcome here
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.
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 #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
I predict that at least 1/2 of Squidoo Members will not implement the Disclosures
Reader predictions:
Fetching
predictions now... please stand by
cory_wilson, at 8am on October 13, 2010 predicts:
If the new guidelines have no punishment attachment to them, then don't expect anyone to follow it.
zoewhite, at 9pm on January 3, 2010 predicts:
I predict that some will comply and some won't.
Ludivine, at 11am on December 16, 2009 predicts:
Click Here! For my prediction affliate marketing will not suffer at all!
tmiller72, at 12am on December 12, 2009 predicts:
the honest advertisers will somehow suffer because of others dishonesty.
Dena, at 7am on December 2, 2009 predicts:
Big Brother is going to stumple and trip on it's own feet. I'm sure most will comply and then there will be others who don't. The FTC will form another taxpayer funded office to follow up only to find that the person running that office is corrupt, congress will investigate.........
ShareTer, at 2pm on December 1, 2009 predicts:
Those of us who promote products or services with which we are familiar and personally endorse, will disclose. I started off trying to make Internet income via Affiliate Marketing but it felt, well, (I may tick off alot of folks here) dishonorable to pitch things I hadn't tried, read or listened to. I like to look in the mirror & see a clear conscience reflected back!
roosterkeyes, at 1pm on November 30, 2009 predicts:
That the FTCis going to cause unintended consequences of squelching legitimate affiliate businesses. Also, companies that sell via the affiliate model may drop small affiliates and only concentrate on the larger ones. It amazes me that in this economic recession/depression (whatever) that a government body would use taxpayer dollars (that they don't have) to restrict people from making money.
OfficeSupplyGeek, at 10am on November 29, 2009 predicts:
And where is the FTC investigation into why the SUV that Tiger Woods crashed wasnt a Buick? I mean I thought he drives a Buick, he does commercials for them, and there was no disclaimer on the commercial that he doesnt actually drive one. :) I dont see much difference here.
caclarkfrieson, at 9am on November 29, 2009 predicts:
that those who believe in the product they are promoting will have no problem disclosing their true relationship with the product and will make the appropriate changes. Those who are inherently dishonest (scammers) will ALWAYS find a way to get around the law.
fiteleanor, at 12pm on November 28, 2009 predicts:
I predict that many members, because of the confusing about the guidelines, will not implement the disclosures. Also we need guidelines from Squidoo and perhaps a specific module be included for the purpose of place a disclosure. etc
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.
What others are saying about new FTC Guidlenes
- (LEGAL) Jock Endorsements. What Are The Rules?
- The more recent FTC guidelines now envelope new media and social media, including bloggers and web commentary, into existing FTC testimonial guidelines. Simply put, an on-air testimonial endorsement of a product or service, whether in an advertisement, ...
- Super Bowl Ads Meet Corporate Compliance
- The FTC's ?Guides Concerning the Use of Endorsements and Testimonials in Advertising? (16 CFR Part 255) explains in more detail the FTC's rationale in this regard. Published in October, 2009 in order to clarify ?administrative interpretations of laws ...
- Super Bowl Madness: 7 Big Legal Questions (and Answers)
- In 2009, the FTC crafted endorsement guidelines for up-front disclosures about business relationships between companies and bloggers. Ever since then, marketing lawyers have been eagerly following the agency to see if there's really any teeth in the ...
- Kevin Hunt: The Bottom Line Guilford Man's $25 Million Weight-Loss Scam: Why ...
- Mizhen's Branford companies, LeanSpa and NutraSlim (and NutraSlim UK), used phony news websites like "Channel8health.com" with endorsements like "Reporter Loses Her 'Belly' Using 1 Easy Tip." To add authenticity, the sites often included a CNN, ...
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?
Fetching blurbs now... please stand byI don't think it will do anything to protect the Public.
athomemomblog says:
I don't mind complying, but I don't think it will actually change anything. People who are cheating are always going to cheat, they just find new ways of doing it. Unfortunately, a lot of innocents are going to get caught in the cross-fire, as usual. I run a writing course, for example, which will have limited testimonials, even if they are true, thanks to the new regs.
Posted December 05, 2009
Michey says:
Personally I'll comply, but until the rules are in stone, and the gray spots disappear, and interpretation issues clarify, until the learning curve is done, probably the good part is not going to surface. And I am sure that will be some victims. But we have to do out best to stay honest and learn the rules.
Posted November 30, 2009
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
It's about time someone started cleaning up the Web from all the Fraud.
CoolFoto says:
I think the rules are a good idea.
Posted December 02, 2009
ShareTer says:
I'm writing a book about the Internet for a target market & am compelled to advise my potential readers that many of the "review" sites they'll find via search engines are no more than affiliate landing pages. They will believe they're getting a legitimate review of something when this is not the case.
Posted December 01, 2009
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
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.
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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
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.
Are these Guidelines Confusing
Thanks to Louis Gray for these humorous disclosures. You can get your own at his site.
Humor goes a long way
Add a little humor to your disclosures
ahh now this would be a good disclosure :)
Test your Knowledge of these Guidlines with this Quiz
I wrote this Quiz to help anyone that didn't see this lens. But now that you have read this, see how well you do on the Quiz. Take the FTC Guidelines Quiz here
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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pastella
Jul 7, 2010 @ 3:47 pm | delete
- This is really useful to know and I'll be applying to each blog I compose.
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spirituality
Dec 16, 2009 @ 1:54 pm | delete
- Most of my regular readers know I make a bit off affiliate sales as I mention it regularly in my newsletter. People who come through search engines are another story. I sort of rely on that line at the bottom of lenses. To put a disclosure on every lens seems so over the top. But I just may put that funny cartoon on my spiritual book reviews lens :)
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Aika
Dec 9, 2009 @ 11:01 pm | delete
- This was very alarming on our part since our company is about affiliate marketing. We've made big changes on our sites, edit some pages because of this news.
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KimGiancaterino Dec 6, 2009 @ 5:44 pm | delete
- Great job, Kathy! Yes, this will affect my blogs and I'm getting right on it. On my notary websites, I also have to disclose that I'm not providing legal advice when recommending certain forms. Blessed by a Squid Angel.
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BigGirlBlue
Dec 6, 2009 @ 1:36 am | delete
- This did help a lot but I'm still confused as to whether a disclosure page is all we need or if every post most have a disclosure. I'm reading conflicting messages as to both.
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