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
About norene
Hey Norene,
Thanks for this clear and concise summary. It reminded me to get my disclosure statement sorted on the ‘legal’ page of my blog!
Rob
.-= Rob´s last blog ..My First Video: Building a Blog Based Business =-.
Thanks for the post, Rob! There is so much to do with any busy — the legal stuff can get put on the back burner. I was glad for the reminder and am happy I could pass that on to you!
Perhaps we can get something good on this. We just need not resist it.
Hey Norene,
How’s it going? It has been a while.
In many ways these new laws are great. However, they will still need to be policed. (There are too many suspect marketers out there).
Best solution is only promote products that you use yourself & believe in, or create your own product and make sure it is up to scratch.
To Your Success.
Rob
.-= Rob Willis´s last blog ..Happy Anniversary =-.
Hey Norene,
Thanks for clearing this up for me, really helpful post.
Sally
.-= Sally Neill´s last blog ..In It To Win It And Need YOUR Help =-.
Hi Norene
Great info….it has made me go and check my blog and sites for anything that could get me in trouble!!! Thnaks agin
Nick
http://www.workfromhomeideas-nickstentiford.com
Thanks for the great information Norene. This is something I hadn’t even thought about, being new to IM.
Lesley
.-= Lesley “Wes” Klatt´s last blog ..Week 1- the Fun Begins! =-.
Hi Norene
Yes legal matters are a real hassle. I have a small legal fight taking place at the moment but compared to Frank Kern’s case it is a hiccup. Thanks for the advice.
A little about me – My name is Sue McDonald and I am a student of Mark Terrell and I am actually going through the course a second time – by invitation. I love it and know if I do all he says, I will be successful. I am Australian but the US is my second home as I have family there and visit quite often. This is why I started Internet Marketing so I can travel whenever I want and have the money to do what I want.
Well I hope you are doing well and you become very successful. I would love you to come visit my blog and leave a comment.
Kind regards
Sue
.-= Sue McDonald´s last blog ..Week 3 of the Newbies Course =-.
Hey Norene
I have just come for a visit to your site. How are you going?
Yes it’s Mark and I am following my students as they post on other peoples blogs. They don’t know that I am always checking to see they are getting results. I am passionate about helping them achieve and then they are able to make some money online exactly the same as I am doing. It is not really difficult as long as they are willing to put in the effort.
Keep up the good work.
Regards
Mark
.-= Mark * Coaching Newbies* Terrell´s last blog ..Coaching Newbies 20 Launch =-.
Hey Nornene -
Thanks for the post. Some many people promote products without even knowing what they are.
Keep on writing!
Mark
.-= Mark Nelson´s last blog ..Jobs For Stay at Home Moms In Network Marketing =-.