The New FTC Guidelines for IM, Blogging & Affiliates, and How It Affects You!
Last week on 1st December the FTC (Federal Trade Commission) released its new guidelines for which Internet Marketers, Bloggers and Affiliate Marketers and all product owners and vendors must adhere to.
I’ve been researching this for the last few days so I can make sure that I’m in compliance, and also to gather info to make this blog post, so that my readers are aware of the changes too.
On my travels I came across a very good webinar recording, which was an interview between a top Internet Marketer, Jim Edwards and Assistant Deputy at The Federal Trade Commission, Mr. Rich Cleland.
You can listen and watch the entire recording here, there’s also a full transcript and MP3 version too, but you will have to sign-up to Jim’s list to get the transcript.
For those who haven’t got time to watch the whole recording (which is quite long) I’ve taken some notes on the parts that will concern us the most, and some of the notes are from other various sources.
Before I go any further I should probably state that I’m not a lawyer, and this is not legal advice. So before you apply anything you should seek legal advice from a lawyer or attorney. These are just notes that I took from the above webinar recording that you can watch yourself, and other various sources.
The Main Points That Will Concern You
What It Means For Product Owners
- Your sales page must show the customer that any results and testimonials displayed are “not typical”.
- Just including the wording “results are not typical” is not deemed as clear enough to the customer.
——-- You must disclose what the “average results” are.
——-- Finding out the average results figure is hard to do, so the best way to protect yourself is to just remove/not include any examples of monetary results based testimonials and claims from your sales page.
——-- You need to take certain steps to make sure any affiliates that promote your product, are doing so by following the new disclosure guidelines
What It Means For Affiliates and Bloggers
- You need to disclose any connections you have with the vendor of the product you are promoting, recommending or reviewing.
——- For example:
———————— – If you have received a free review copy from the product owner, you need to disclose that in your blog post/email etc…
————————-- You need to disclose any commission you get from referring the sale.
————————-- Any affiliate links in blog posts and emails needs to have a disclosure notice near it.
————————-- If you have affiliate links or ads in your sidebar, then you need to add a little message to appear in your sidebar stating that you are an affiliate for any products advertised.
Does This Apply To You If You Are Outside The USA?
- Yes!… If you sell or promote a product on the internet, then it is possible that your customers might be from the US.
—— - This is especially the case if the product you are promoting is priced in US dollars, but will also most likely still apply even if it is another currency.
- Clickbank, CPA networks, eBay, Amazon and several other large affiliate networks are US based, and they adhere to these rules and regulations. So it is in those companies best interests that you follow the guidelines, or they will not shield you from any liability.
That is just a brief summary of the changes, and I really recommend you listen to the entire interview which I mentioned at the beginning of this post.
I’ll leave you with an interesting write up regarding the FTC guideline changes, it’s a blog post by one of my favourite Internet Marketers, Jonny Andrews:
FTC Crackdown: The REAL Death Of Affiliate Marketing
I hope my post and the links I’ve provided help you understand the new FTC changes a little better, and also helps to reassure you that it’s not all bad news.
The changes are there for us as consumers and I actually think they are a good thing, and I don’t think there’s anything wrong with full disclosure marketing anyway… In fact I think it is the best way, and my preferred way of doing things.
Until next time…
Paul
Tagged with: affiliates • bloggers • full disclosure marketing • internet marketing • new ftc guidelines
Filed under: Changes In Internet Marketing
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Hey Paul,
When you say “Any affiliate links in blog posts and emails needs to have a disclosure notice near it” how do you go about doing that?
Cheers,
Nick
Nick Brosnan´s last blog ..What Ive Been Doing
Hi Nick,
Thanks for your question.
Well in the webinar that I watched by Jim Edwards, he talked of having a notice directly underneath the link for blog posts, and that is what I’ve done in my posts ~example here – http://paul-lear.com/category/league-of-extraordinary-minds/
The disclosure should at least state that you are affiliate for the product, but I’ve also added that I will receive a commission too, just to be extra safe. I think that just because I know what affiliate links are, it doesn’t mean everyone who visits my blog will know what they are.
Anything you are in doubt about, it’s best to disclose the relationship between you and the company or product.
If you have affiliate links or ads in your sidebar, then you need to add a little message to appear in your sidebar stating that you are an affiliate for any products advertised. (I’ve added this bit into the post now)
You can visit my friend Jacinta Dean’s blog to see how she has gone about disclosing her sidebar ads here – http://creatingmybusinessonline.com/
For emails just stating it’s affiliate link somewhere in there, perhaps at the end of the email, but not too far down, should be good enough. But I’m going to watch what some of the bigger marketers do, and follow their lead.
I hope that answers your question? If not please feel free to reply again and I’ll help as best as I can.
Paul
Hey Paul,
That doesn’t seem to bad i was expecting something a lot more complicated.
Thanks for clearing that up for me Paul appreciated.
Cheers,
Nick
Nick Brosnan´s last blog ..What Ive Been Doing
Great info Paul!!
Before getting into blogging and teaching IM I was solely an affiliate marketer. I predict a busy time ahead making alterations to all my existing projects! (Gotta do what needs to be done though).
Good examples of what to do in relation to blogs. I’ve also added a disclosure statement along with the terms and privacy policy in the legal section of my blog too.
I agree; lets see what the big fish do and follow their lead…
Rob
Rob Bradley´s last blog ..My First Video: Building a Blog Based Business
Hi Rob,
Sounds like you have quite a few affiliate projects then, I was planning on getting into affiliate marketing before I joined Alex’s coaching… But I decided not to bother once I started learning from Alex.
I hope it doesn’t take you too long making all the alterations, but like you say it has to be done, not worth the risk.
I was thinking of adding a disclosure and privacy page to my blog, but I noticed a lot of people don’t have them. I’ll have to look into it more, and I’ll check yours out for ideas.
Thanks for stopping by, and glad you found the post useful.
Paul
Well it’s probably not that many…I’m just moaning cos it’s extra ‘work’
Affiliate marketing is great but, particularly today, it’s a harsh and often unforgiving environment for a newbie (not like the good ol’ days of Google Cash!)
This approach taught by Alex is def the way to go when starting out, the principles are similar, the approach is much slower but the risk is reduced and it’s building for the long term – I’m really pleased I got involved!!
Re: the legal page, you’re welcome to ‘take inspiration’ (swipe and replace urls and email addresses)
. Agreed, not many peeps seem to have them YET but I think it’s wise to approach from the ‘better safe than sorry’ mentality.
Rob Bradley´s last blog ..My First Video: Building a Blog Based Business
I agree the approach taught by Alex is definitely the way to go when starting out, and I’m also very glad I got involved. It’s one of the best decisions I’ve made in a long time.
Thanks for giving me permission use your legal page, it would certainly save me some time writing my own up from scratch.
Thanks for popping back over here to respond too.
Paul
I think there are many products out there that don’t need the manifestation of results, like books. Perhaps we should go for them.
Hi Walter,
Yeah there sure is, this is the beginning of a new era and I’m sure there’s still plenty of ways to make money with info products, without breaking the new guidelines.
We just have to be careful of affiliates for our products now though, if they promote for us and don’t follow the guidelines we get screwed along with them!
I’m sure something will change to protect the product owner from that though, it just doesn’t seem fair as we don’t any control over how other people promote our products?
Thanks for stopping by!
Paul
Hi Paul,
great post! FTC is making it harder on IM’ers but I guess we will see a drop in IM’ers that aren’t serious about their business and that will benefit us!
Btw. Thanks for the comment on my blog.
Have a great day and good luck with your business.
Thomas
Hi Thomas,
Yes I’m sure there will be a lot of people, especially affiliate marketers that will decide to give up because of these new rules… Which can only be a good thing for the rest of us
Thanks for the comment, and good luck with your business too… I’m sure we will work together at some point.
Paul
Thanks Paul. It looks like you are on top of this. I still get tons of offers without disclosures, and the testimonials have not disappeared at all since Dec 1st.
I wonder if they really are able to police this with millions upon millions of sites online.
It seems like a regulatory nightmare.
Evan Beck´s last blog ..How to Honestly Judge Review Sites
Hi Evan,
Well I have done my research and listened to most of the interview that I mentioned, but there’s still a few things that I’m not sure about… Maybe a disclosure under the link isn’t really necessary, I was just going off what was talked about in the interview I listened to.
There seems to be a number of ways to go about it, and I’m still waiting and watching to see what some of the bigger marketers do in their email promotions…
I think I will most likely include a statement at the end of the email for any promotions, as I’ve seen a couple of people do that so far. But I agree that a lot of people are still carrying on as normal like the changes haven’t happened.
It does seem like a nightmare to police this, and would cost them a lot in man hours and staff costs.
Only time will tell, thanks for your comment.
Paul
Hi Paul,
I finally popped past. I have been very busy catching up on my studies and haven’t been able to pop past.
The FTC stuff can be a little confusing. My concern is about being publishers and having affiliates promoting our products. According to the FTC we need to be responsible for our affiliates. So how do we do that when our product is listed with clickbank or paydotcom and we have over 1,000 affiliates?
I think we will find a lot of marketers will have private affiliate programs soon and have an application process, a bit like applying for ebay.
I think it will be important as publishers to know our affiliates and I guess that is where the idea of adswaps will really come into being.
Hope all is well.
Jacinta
Hi Jacinta,
This is my concern too, I think Clickbank should make all affiliates sign a disclosure notice form, where by signing they are forced to read and agree to the FTC guidelines, before being allowed to promote any more products.
People just seem to be continuing as if nothing has changed from what I can tell?
Everything is good with me thanks, hope all is well with you.
Paul