New FTC Regulations For Bloggers and Affiliate Marketers
If you’re a blogger and/or affiliate marketer and you live in the United States, then you’re probably aware of the new Federal Trade Commission (FTC) regulations that will go into affect December 1, 2009. That’s in less than 4 hours from now, by the way.
Here’s the official release of the new regulations on the FTC website: http://www.ftc.gov/opa/2009/10/endortest.shtm
I’m a blogger (obviously) and an affiliate marketer AND I live in the U.S., so I needed to listen up to these new changes and how they were going to effect how I do business.
When these new regulations first came out, there was a lot of confusion and not many people knew exactly what needed to be changed to be in compliance. I’ll be honest, I was very confused myself, and I still am, kind of. Maybe you were in the same boat, or still am. If you are, that’s good because I’m going to provide you with everything you need to know. Well, I’ll provide you with the links that will provide you with everything you need to know. 
I wanted to get the facts about what I needed to change, if anything, so I wouldn’t become non-compliant and get in trouble with the FTC. That would be a very bad thing. I want to avoid this at all cost because it can be costly if the FTC comes after you.
After reading Peter Lee’s blog post on the New FTC Guidelines, I was just left with a million questions because everything was left up in the air. There weren’t any definitive answers, and that wasn’t Peter’s fault by any means. No one was sure at that point.
After a couple weeks or so, I finally started getting answers. I found a couple of resources that I found very helpful in getting some concrete answers. The first resource is an interview that Jim Edwards did with Mr. Rich Cleland, Assistant Deputy at The Federal Trade Commission. I took the time to listen to the interview. It’s lengthy but worth every second of it.
Listening to this FTC Interview is a must if you want the facts about what these new regulations entail and how they’re going to affect you as a blogger and affiliate marketer.
Another great resource I found through Twitter is: http://www.clicknewz.com/?s=ftc
Here’s one more from Mike Young’s Internet Law blog: http://mikeyounglaw.com/wp/2009/10/16/testimonials-federal-trade-commission-ftc-websites/
These resources should give you the information you need to stay FTC compliant in your blogging, affiliate marketing or online business venture.
What do you think about the new FTC regulations? Do you agree with them? What do you like or not like about these new regulations? Share your thoughts below…
Tags: affiliate marketer, Affiliate Marketing, blogging, federal trade commission, FTC, ftc guidelines, ftc regulations, ftc website, jim edwards, Mike Young, Mr. Rich Cleland, online business, peter lee
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Filed under: Affiliate Marketing • Resources • Useful Websites • blogging • online business
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Twitter: DennisEdell
says:
I personally say, it’s about damn time; but realize I may be a minority here. lol
Being the affiliate guppy I am, I’m not too worried about myself, but still confused as to what if anything someone so small as me needs to do.
Dennis Edell´s last blog ..Whoopsy Commentluv Is Busted! You Have Permission To Leave ONE Link.
[Reply]
Alan Mater
Twitter: AMater
@Dennis Edell, Hey Dennis, I have mixed feelings about the whole thing. I agree with some of the changes, but not others. And, I’m not sure exactly how it’s going to help consumers as a whole.
The basic idea is that it’s supposed to help prevent people from being dishonest and downright lying to people.
First of all, people have always been doing these things and getting away with it. If they can find a way, they will. So, I don’t see this hurting the scammers any. It’s just going to make things harder for us honest marketers.
Second, consumers need to wake up and use sound judgement. If it sounds too good to be true, then it might be. They need to research stuff before they get out the wallet. A simple Google search would solve a lot of problems I believe.
That’s my take on it. I believe it does have its benefits, though. I just don’t like what the future could bring if they decide to regulate every aspect of how we run OUR businesses.
Obviously I believe in being honest and upfront with people, but when someone steps in and starts telling me what I can and can’t do with my business, that’s not something I can swallow easily.
[Reply]
Dennis Edell
Twitter: DennisEdell
@Alan Mater,
Leaving things up to ones own common sense…a nifty idea, greast in theory, but will never happen again I’m afraid; this is just the beginning.
Unfortunately I think we’ve done a great job as a collective in proving that common sense left the building with the previous generation(s).
Dennis Edell´s last blog ..Simons Running A Contest – Over $800 In Prizes!
[Reply]
Alan Mater
Twitter: AMater
@Dennis Edell, Sad to say, I completely agree. It’s unfortunate really. However, the problem is that people are always going to be scammed regardless of new rules and regulations that come out, and there’s no way to shut these people down. So, is this really the answer to our problems?
Being honest and upfront with people is a practice that many have used for years, including myself. So, I don’t see myself making too many changes. I’m just a small guy in this arena anyway.
What’s your take on having to disclose affiliate links? I know this is a touchy subject with many people.
[Reply]
Dennis Edell
Twitter: DennisEdell
@Alan Mater,
As a consumer, if you recommend something that I want to buy, I would use the affiliate link every time. Why not?
As a publisher, I guess I just hope others feel the same as I do being the consumer.
[Reply]
Alan Mater
Twitter: AMater
@Dennis Edell, Well, there’s plenty of people that will not buy something if they see it’s an affiliate link. I guess they don’t want whoever getting a commission from the sale. I personally think that’s stupid. Then you have those who will try to hijack your affiliate link or remove it and go directly to the main domain, to satisfy what I first said. I don’t know what it matters, but I guess people are just mean spirited. That’s why you hear so much about affiliate link cloaking, so doing the above isn’t possible.
I have no problem buying through an affiliate link because I may not have heard about it otherwise except from the person promoting it. It’s only fair to them that they make a little something from it, you know?
Overall I don’t agree with this part of the regulations. Whether they know it’s an affiliate link or not shouldn’t matter. But, as an example, you may have a link that you don’t disclose and someone is eager to buy. On the other hand, you have someone who is eager to buy, but once you tell them it’s an affiliate link, all of a sudden they’re no longer interested. It’ll happen I’m sure.
I guess it all comes down to being honest and building trust with your readers and visitors. If they trust you enough, then they’ll buy from your affiliate links knowing that they are such. However, if they don’t trust you, then they may just think you’re promoting another recycled product just to make a quick buck.
[Reply]
Twitter: DennisEdell
says:
It does all come down to trust for sure, especially if you’re promoting off your blog, where you may have regulars.
As for hijacking or deleting, you can attempt to preempt this with the right cloaking tools. These however are not the ones I would worry about most; these are just fellow marketers being schmucks and they won’t be around long anyway.
The ones I’d be concerned with most are non-marketer consumers (outside the IM/Am niche perhaps) who genuinely don’t even realize that both links are exactly the same…..they see domain.com next to a bunch of crap, get nervous and pick domain.com every time.
I know this because it was me. When I first came online, I went around many aff. links due to sheer ignorance.
Dennis Edell´s last blog ..Blogging Halted Here – Don’t Despair, This Is A Good Thing!
[Reply]
Alan Mater
Twitter: AMater
@Dennis Edell, Yeah, I much prefer to create a link like mysite.com/product rather than posting the real affiliate link just because it looks a lot less professional, and the fact that many do what you said.
[Reply]
Twitter: DennisEdell
says:
OK I get the new regs regarding endorsements and testimonials, but I am still fuzzy on the simple affiliate link….are you saying we DO have to put two for everyone now?
Dennis Edell´s last blog ..Blogging Halted Here – Don’t Despair, This Is A Good Thing!
[Reply]
Alan Mater
Twitter: AMater
@Dennis Edell, The new regulations are saying that we have to tell our readers that the link we posted is an affiliate link and that we will be compensated if they buy from the link.
[Reply]
Dennis Edell
Twitter: DennisEdell
@Alan Mater, but does it have to be written right there or maybe a separate page?
Dennis Edell´s last blog ..Blogging Halted Here – Don’t Despair, This Is A Good Thing!
[Reply]
Alan Mater
Twitter: AMater
@Dennis Edell, See that’s where it gets tricky. Supposedly it has to be very conspicuous… like right below the link. But, that’s impossible if you have a whole page full of affiliate links, as an example.
I updated my disclaimer page, but who knows if that will be good enough.
[Reply]
Dennis Edell
Twitter: DennisEdell
@Alan Mater, I was turned onto one blog (can’t recall which), that has the following pasted right above the comments; of course that means this is on every page…
MATERIAL CONNECTION DISCLOSURE:
You should assume that the authors of information provided on this site have an affiliate relationship and/or another material connection to the providers of goods and services mentioned in this information and may be compensated when you purchase from a provider. You should always perform due diligence before buying goods or services from anyone via the Internet or offline.
Dennis Edell´s last blog ..Blogging Halted Here – Don’t Despair, This Is A Good Thing!
[Reply]
Alan Mater
Twitter: AMater
@Dennis Edell, Hey, now that’s useful. They probably consulted a lawyer. Some big-time marketers were promoting a new legal forms package that would automatically create the necessary disclaimers and such to put on your site that would comply with the new regulations. Of course they wanted $200 for it.
[Reply]
“….a new legal forms package that would a…. Of course they wanted $200 for it.”
I read about this too. Mercenaries they are! Do you think this new FTC Regulation applies to solely doing business in US. Not sure how that really means. If I live in Asia and promote affiliate programs launched by someone in US, am I out of their jurisdiction? Probably not but I think they never mentioned.
-Peter
Internet Home Business´s last blog ..Blog Income & Stats – November 2009
[Reply]
Dennis Edell
Twitter: DennisEdell
@Internet Home Business,
What’s up Peter, long time no hear/read/write, lol.
I saw someone comment to Sire (from Australia) that he was safe. It sounded authoritative but don’t quote me.
Dennis Edell´s last blog ..Blogging Halted Here – Don’t Despair, This Is A Good Thing!
[Reply]
Internet Home Business
@Dennis Edell,
Hi Dennis, good to see you here and thanks for telling me. Hey you are really making your presence here on this comment thread. Well once a comment king always will be one. LOL.
Internet Home Business´s last blog ..Blog Income & Stats – November 2009
[Reply]
Dennis Edell
Twitter: DennisEdell
@Internet Home Business,
I do what can.
Dennis Edell´s last blog ..Blogging Halted Here – Don’t Despair, This Is A Good Thing!
[Reply]
Alan Mater
Twitter: AMater
@Internet Home Business, The answer to that question, Peter, is in the interview with Jim Edwards. Well, maybe part of the answer anyway. I would say it solely depends on the circumstance, but I wouldn’t completely rule out that you’re off the hook if something bad was to go down against the U.S. business.
[Reply]
Internet Home Business
@Alan Mater,
Thanks Alan. I guess I’ll still try to be compliant either way. Better safe than be sorry.
Internet Home Business´s last blog ..Free Advertising Ads on This Blog-X’mas 2009 Special
[Reply]
Alan Mater
Twitter: AMater
@Internet Home Business, I agree.
[Reply]
Twitter: DennisEdell
says:
@ Allen – Go ahead and use what I wrote there. I was told it was ok to do so.
Thing is though, that guy obviously put it right in the editor so it showed above the comments on EVERY SINGLE PAGE.
What do you think of that, would it scare or confuse? Or would you do it manually under posts you know have affiliate links?
Dennis Edell´s last blog ..Blogging Halted Here – Don’t Despair, This Is A Good Thing!
[Reply]
Alan Mater
Twitter: AMater
@Dennis Edell, That’s a good question, Dennis. I figure it’s better safe than sorry. I don’t think it would hurt much to put it in the editor so it’s on every page. I might have to test it, though, to see what’s going to be best.
[Reply]
Dennis Edell
Twitter: DennisEdell
@Alan Mater,
Good idea Sir Guinea Pig, let us know how that goes.
Dennis Edell´s last blog ..4 Plugin Package – 75% Off!
[Reply]
Twitter: DennisEdell
says:
I meant to add – I also saw the package and there is more then one…$200 my ***, perhaps if I was a Joel Comm or someone.
Honestly if anyone were to come after someone as low level as myself, they really need a hobby. LOL
Dennis Edell´s last blog ..Blogging Halted Here – Don’t Despair, This Is A Good Thing!
[Reply]
Alan Mater
Twitter: AMater
@Dennis Edell, Exactly, but the thing is they don’t have the resources to go after every single person. They’re only going to go after those who are doing the most harm. So, I think it’s safe to say that doesn’t include us little guys.
[Reply]
Dennis Edell
Twitter: DennisEdell
@Alan Mater, Indeed!
Now if I were a Rosalind Gardner or Lynn Terry, I’d be sure ALL my quakers were in a row dressed nicely. LOL
Super affiliates to the 10th power.
Dennis Edell´s last blog ..4 Plugin Package – 75% Off!
[Reply]
Alan Mater
Twitter: AMater
@Dennis Edell, LOL… you always crack me up, Dennis. A sense of humor is a great thing.
[Reply]
Thanks for your post – it did clarify a few things.. I guess it will take a while for the changes to be really bedded in, maybe even a few test cases for us all to really understand what it all means. Hopefully you and I won’t end up being the test cases!
[Reply]
Alan Mater
Twitter: AMater
@Abel,
Welcome aboard! Glad you found it helpful in clarifying some things. They certainly make it tough in trying to figure out exactly what the new guidelines entail.
I hope you’re right. The last thing I need is to end up with them breathing down my back for something, especially after what happened in this post: http://www.replaceyoursalary.com/work-from-home-blog/work-from-home/dont-make-the-same-stupid-mistake-i-made-seriously.
Hope you’ll stick around.
[Reply]