New FTC Guidelines Toughen Affiliate Marketing
Posted by LoudMo on April 22nd, 2010
Every affiliate marketer should be aware of the Federal Trade Commission’s new rules regarding endorsements, testimonial advertisements, and blog writing. The changes came into effect on December 1, 2009 but the FTC is warning advertisers that changes are not occurring quickly enough.
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| “If a marketer is found to not be following the rules, they will get an $11,000 penalty per incident.” |
The FTC’s new rules have already had an impact on most products and affiliate programs being offered through the internet. Understanding the new guidelines is the first step in protecting yourself against penalties. Some of the major changes include:
Change #1: Every affiliate marketer needs to make it obvious that they are profiting from the online sale or referral. Affiliates that post an affiliate link on a website or landing page needs to include a disclaimer somewhere near the link. For example: “Note: In order to follow the new FTC regulations, if you purchase (insert product name) by clicking on any of the links on this site, I will receive a commission from the product’s creator/manufacturer.”
Change #2: The second major change that the FTC is putting into action concerns testimonials. Any website or landing page that includes a testimonial that includes quotes like “I made $100,000 with this program in just 4 days” or “Make 5X the profits” will also need to include a disclaimer. This text must include the statement that the results are not typical and outline what the usual results really are.
If testimonials don’t make major claims and only include statements like “I love this program” or “I’m starting to receive more positive feedback” they are fine.
These are the major changes that will affect affiliates and internet marketers alike, make sure to read the official document to find out if any more changes will affect your marketing strategies. If an affiliate marketer is found to be neglecting the rules, there is an $11,000 fine per incident.
For more information about the FTC changes to affiliate marketing and how it may affect you, visit http://www.loudmo.com
Tags: affiliate marketing, affiliate program, Federal Trade Commission, federal trade commission digital millennium, ftc toughens guidelines, what is the role of the ftc