Tuesday, October 13, 2009
New FTC guidelines
Just a quick courtesy 'heads up' about this in case you have not heard already. If your online business operations extend into USA then here is a news release by US Federal Trade Commission (FTC) that will likely impact you.
The News Release can be found at:- http://www.ftc.gov/opa/2009/10/endortest.shtm
There are links to documents providing examples on the right side of this page.
I have not read it in full detail yet but as an affiliate then basically it seems this is what it is about:-
"... will be interpreted as representing that the endorser’s experience is representative of what consumers will generally achieve with the advertised product in actual, albeit variable, conditions of use. Therefore, unless the advertiser possesses and relies upon adequate substantiation for this representation, the advertisement should either clearly and conspicuously disclose what the generally expected performance would be in the depicted circumstances or clearly and conspicuously disclose the limited applicability of the endorser’s experience to what consumers may generally expect to achieve."
As I said this is a legal position brought about by the US FTC and therefore I can not give any advice on this matter. If you have any questions then consult your solicitor, as any of the above comments I make are not to be considered legal advice.
Here are some more useful references where you can find out more on to this topic:-
1) Dave Kaminski from Web Video University - A 10 min audio interview with USA Lawyer Kevin Houchin in Colorado. Here is the link:
http://webvideouniversity.com/podcast/video/2009/10/16/wvu-58-the-new-ftc-rules-for-internet-marketers
2) More from Kevin Houchin about this topic on his site http://houchinlaw.com:
http://houchinlaw.com/?p=468
As always, wishing you every success for your business.
Kevin Richardson
www.biztoolz.com.au
The News Release can be found at:- http://www.ftc.gov/opa/2009/10/endortest.shtm
There are links to documents providing examples on the right side of this page.
I have not read it in full detail yet but as an affiliate then basically it seems this is what it is about:-
- You should not make income or results claims unless you have real evidence to prove this is what your consumer will generally achieve with your advertised product/service
- You have to disclose if you have received a free review copy if doing reviews
- You have to disclose when links are affiliate links and that that if they purchase you will receive an affiliate compensation.
"... will be interpreted as representing that the endorser’s experience is representative of what consumers will generally achieve with the advertised product in actual, albeit variable, conditions of use. Therefore, unless the advertiser possesses and relies upon adequate substantiation for this representation, the advertisement should either clearly and conspicuously disclose what the generally expected performance would be in the depicted circumstances or clearly and conspicuously disclose the limited applicability of the endorser’s experience to what consumers may generally expect to achieve."
As I said this is a legal position brought about by the US FTC and therefore I can not give any advice on this matter. If you have any questions then consult your solicitor, as any of the above comments I make are not to be considered legal advice.
Here are some more useful references where you can find out more on to this topic:-
1) Dave Kaminski from Web Video University - A 10 min audio interview with USA Lawyer Kevin Houchin in Colorado. Here is the link:
http://webvideouniversity.com/podcast/video/2009/10/16/wvu-58-the-new-ftc-rules-for-internet-marketers
2) More from Kevin Houchin about this topic on his site http://houchinlaw.com:
http://houchinlaw.com/?p=468
As always, wishing you every success for your business.
Kevin Richardson
www.biztoolz.com.au
