Today, December 1, 2009 the new laws that were revised by the Federal Trade Commission regarding endorsements and affiliates go into effect.

In brief, if you are an affiliate for someone else’s products, or create and promote your own products, this is what it means to you.

1. Responsibility. You are responsible for checking out the products that you promote. It really goes without saying that you should purchase any product that you are thinking of promoting. Doing so, you will be able to quickly weed out any weak or inferior products and save your reputation in the process. You will also be able to promote it honestly if you have used the product. This will shine through in your promotion.

2. Disclosure. You must let your readership know that you are getting paid for every sale made. This means that you must include a disclosure statement on your website or blog explaining the relationship you have to the product that you are promoting.

3. Testimonials. You cannot include any claims or testimonials on your site that you cannot substantiate. Again, if you have used the product successfully you can say that. If you have not, you cannot make claims indicating that you have. And you cannot include testimonials of others that you cannot prove.

Through all of this many are talking about the need to hire an attorney to make sure you are in compliance. As I am just getting my business started, this is not an option for me. However, I received an email from Frank Kerns who sent me a link to a video made by HIS attorney. If you do not know Frank Kern’s story, check out his blog post, What It’s Like to Be Sued by the FTC.

Frank’s attorney, Denise Gosnell, has created a product that includes ten strategies to keep your business in compliance with the new FTC rules. These include how to Use the Proper Written Agreements with Contractors and Employees, Trademark Law Pitfalls and Tips, Using Non-Disclosure Agreements to Protect Your Intellectual Property, Following Proper Accounting Principals to Keep Your Business in Good Standing. It also includes agreements such as Professional Services Agreement, Employment Agreement, Interview Release Agreement, Sample Web Site Privacy Policy, Sample Web Site Terms of Use.

My disclaimer — this IS an affiliate link. I believe in this product because it is a fairly affordable way make sure you are compliant with the new FTC regulations without having to retain an attorney. Of course if you are in the IM business long term, as with any business, as soon as you can afford an attorney, it would be in your best interest to find and retain a good attorney. Again my disclaimer — I am not an attorney, this is just my humble opinion.

Check out the video.

Best wishes for a successful and FTC-compliant business!

~Norene