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kmd245
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UK
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Posted: Tue Dec 01, 2009 2:50 pm
Post subject: new affiliate legislation? [New FTC guidelines]
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I came across a thread in another forum recently where they were going on about some US govt committee or something called the FTC who were considering new legislation which would require an affiliate to place text near or under an affiliate link stating clearly that if the customer buys the product in question then part of the cost would go to the affiliate as commission.
Even if you were affiliated to a really great product that you were personally passionate about (which is not always going to be the case is it?) and felt that you had nothing to hide, this would still kill a lot of sales would'nt it?
Does anyone know if this is for real and if so what's happening about it?
[I've added "New FTC guidelines" to the subject line to help people find this post. Admin.] |
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AllanGardyne
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Posted: Tue Dec 01, 2009 10:40 pm
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FTC is the Federal Trade Commission. New updated guidelines that affect affiliates came into force on December 1.
Non-U.S. affiliates are affected if part of the transaction occurs in the U.S., for example if either the affiliate merchant or the affiliate is in the U.S.
This isn't new FTC legislation. It's updated guidelines on old laws.
| Quote: | | Even if you were affiliated to a really great product that you were personally passionate about (which is not always going to be the case is it?) and felt that you had nothing to hide, this would still kill a lot of sales would'nt it? |
Maybe. I think it depends how you go about it. You could say things like...
"I love being a PPCLoophole affiliate because I know from first-hand experience that the company's products and service are superb."
Here's a quick summary from the FTC:
http://www.ftc.gov/opa/2009/10/endortest.shtm
Very simple, very short, FTC videos with more info:
http://www.ftc.gov/multimedia/video/business/endorsement-guides.shtm
Michel Fortin has a good article on the FTC guidelines here:
http://www.michelfortin.com/affiliate-marketing/
TechCrunch did a good article, too:
http://www.techcrunch.com/2009/10/05/ftc-values-sponsored-conversations-at-11000-apiece/
Jim Edwards did a thorough interview with Rich Cleland of the FTC, including a discussion of what disclosures are acceptable. The disclosure needs to be "clear and conspicuous". You can watch the video here:
http://www.igottatellyou.com/blog/ftc-change-interview/
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Allan Gardyne
AssociatePrograms.com - You're here. Explore it! |
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automaticrevenue
Joined:
02 Dec 2009
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1
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Posted: Wed Dec 02, 2009 6:27 am
Post subject:
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This is what I heard recently:
| Quote: | As you have agreed to our Affiliate Terms of Service and to comply at all times with all applicable laws, including but not limited to the FTC Act, we would like to update you on the most recent changes made by the Federal Trade Commission (FTC) to its Guidelines Concerning the Use of Testimonials and Endorsement in Advertising scheduled to take effect December 1st, 2009. As defined by the FTC, an endorsement or testimonial is "any advertising message of an individual or the name or seal of an organization that consumers are likely to believe reflects the opinions, beliefs and findings, or experiences of a party other than the sponsoring advertiser".
Below outlines some of the more significant changes made by the FTC:
-The endorsement message must reflect the true opinion, experience and findings of the endorser (whether a consumer, celebrity or an organization)
- All claims and statements made in an the endorsement message must reflect what consumers can generally achieve otherwise it should clearly disclose the generally expected performance
- All claims and statements must be substantiated
- All material connections between the advertiser and endorser must be disclosed (whether monetary, in form of gift or research funding)
FTC Press Release can be found here: http://www.ftc.gov/opa/2009/10/endortest.shtm |
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AllanGardyne
Site Admin
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Posted: Wed Dec 02, 2009 7:15 am
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Hi automaticrevenue, Welcome to the forum!
That looks like a nice, tidy summary, but just about impossible to follow as far as most Internet marketing products are concerned. How do find out what a typical result is?
Here's how Paul Myers summed up the challenges in a recent newsletter:
| Quote: | It's no longer good enough to point out that the results
mentioned might be exceptional. If you use results-based
testimonials or case studies, you also have to tell the viewer
or reader what the typical results are that your customers
achieve using the product.
This is tough for physical products, such as weight loss
programs and the like, but it's doable. It's damned near
impossible for "how to" products.
The reasons are pretty simple: Most people buy them and don't
do anything with them. Others add or remove processes, or do
various things really well or poorly. All of that affects
results, and makes it incredibly hard to describe "typical,"
even if you can get people to tell you their results.
Getting them to tell you what they achieved can be a tough row
to hoe to start with. Many people are embarrassed to tell you
they did nothing with it. Others overstate their results out of
pride, or as a means to get more credibility. Some will
understate them, to keep attention away from their successes.
None of this has any reflection on the product, or the truth of
the advertising involved. It's a matter of record-keeping and
regulatory compliance that may prove beyond the capabilities of
many information publishers.
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Also, many products are promoted when they are being launched, and don't have "typical results" yet.
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Allan Gardyne
AssociatePrograms.com - You're here. Explore it! |
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