I sat in on a session at Affiliate Convention with Stephen Richter discussing new aspects of compliance we’re all going to have to think about.
You’ve probably heard some talk about the FTC cracking down on bloggers. Well it doesn’t stop there. They are getting all geared up to outline new regulations by the end of the summer.
Here are the current regulations which are being applied to affiliates:
http://www.ftc.gov/os/2008/11/P034520endorsementguides.pdf
Who will be affected?
Bloggers who have affiliate links or take any form of compensation as payment for a blog post including free samples to be reviewed.
Floggers (fake bloggers) are doomed.
Almost all affiliate marketers of any sort are going to be impacted.
You think you’re compliant but your not:
You’ve got some fine print tucked away somewhere in a privacy policy, or terms of service, or even a ‘disclosure’ page. Right?
Well that’s not gonna cut the mustard buddy. The FTC is looking at the ‘whole picture’ of a website including. Ads, landing pages, testimonials, etc. If one word on your website is a lie, you are not fully compliant with the intent of the law.
In addition to that, if you are reviewing or even (god forbid) giving a genuine and honest review of a product, you have to disclose the fact that you are being or will be compensated. We are talking about sweeping changes to the way online marketing is allowed to continue.
Disclaimer: I am hoping that you will read my article and then sign up through referral links to affiliate networks or hosting providers. All the ads you see and practically any link you see on this site is fully intended to make me rich. Maybe you should just give me half the money in your wallet right now and we’ll call it even.
On a final note, it’s a good idea to think about getting an LLC. And if you’re doing some serious business, or doing some seriously risky business, maybe you should be setting up offshore entities to make coming after you more difficult.
In addition, you might want to talk to a few lawyers about setting up your business structures in a way that will really protect your personal wealth.
Lastly, please note that I’m not an attorney and following any advice I give you may result in dire consequences up to and including loss of limb, life, money, property, or your freedom.
Want more? Read a Washington Post article about it here.
This will truly change the way all advertisers work on the internet. I can see your frustration here DB. It’s like you have to write in your blog posts what the ads are for. Also on your landing pages you should explain that when people buy the product your’re offering, you are going to get a commission from that.
These are serious stuff, but on the bright side it will rule out all those copycats and lifeless websites that promise mostly hype.