Comments on: FTC Disclosure Rules & Affiliate Marketing Implications

By: Geno

Geno — Thu, 27 Jan 2011 18:17:50 +0000

Megan, if you're getting affiliate commission when the end user makes the purchase from the clothing retailer after clicking on your link you must disclose the "sponsor-endorser" relationships. So, basically, every affiliate must have a disclosure on their website.

By: Megan

Megan — Thu, 27 Jan 2011 05:05:54 +0000

I have a specific example I’m wondering about:

I wrote a post about an online clothing retailer – and posted a link (through Commission Junction) with a code (15% off) that CJ got the online retailer to create for my blog readers specifically.

I did not receive any money, product or bonus for posting it.. all I got was a code to give my readers. So would I need to disclose something like this?

Or is it just when you receive money or free products?

By: Tania Halpin

Tania Halpin — Fri, 27 Nov 2009 02:06:17 +0000

Wow! You’re a wealth of information! Thanks.

And, absolutely agreed.

By: Geno

Geno — Fri, 27 Nov 2009 01:56:24 +0000

Tania or Tanya is actually a short for a Russian name Tatyana (my mother-in-law’s name). Some would say that it means a Fairy Queen or Fairy Princess, others – that it is somehow tied to Tatius (a Sabine king), yet others – that it comes from some Greek word. Russians do not imply any meaning when they call their children Tatyana (or Tanya/Tania). I think it just sounds beautiful, and it seems that many Russian authors and poets (including Pushkin) thought so too.

Yes, enforcing the rules will be tough. But if merchants/advertisers are expected to be the ones to do it, they better be ready (and have their bases covered)

By: Tania Halpin

Tania Halpin — Thu, 26 Nov 2009 07:45:53 +0000

Thanks Geno! I quite like the name myself. It’s from Midsummers nights dream by Shakespeare – means fairy princess. Not sure it really fits me but you get that.

I’ll be watching the post comments closely to see how the FTC fares with enforcement.

I’ve experienced similar issues in the past. Legislation is great but it’s often not that easy for any body to enforce. I am sure the FTC will have their policies and procedures in place to do it though.

By: Geno

Geno — Thu, 26 Nov 2009 04:39:55 +0000

@ Tania: Beautiful Russian name (one of the names we were thinking of calling my daughter who’s turning 6 tomorrow). Yes, I do agree with Elijah that it will be impossible for the FTC to police compliance worldwide, but they made it clear that it is actually expected of the advertisers to educate and monitor their “endorsers”… So, I’m sure we’re going to read/witness much more on the subject once the rules actually kick into power on December 1. …and I do like your “simply comply and no problem” advice. Exactly my point too!

@ Steve: Good idea on including a short message on all pages in addition to the overall disclosure. Just one minor mistake in the wording. They are not “affiliates”, but “advertisers” or “merchants” you affiliate with (you are their “affiliate”).

By: Steve

Steve — Thu, 26 Nov 2009 03:38:21 +0000

I think the disclosure is easy to take care of. It’s the sections of the FTC clauses that deal with posting atypical testimonials/product endorsements that will be difficult to get around for most Internet marketers.

Since the FTC hasn’t spelled out exactly how this is to be worded (the affiliate disclosures) I believe we can get by with something that is a good faith effort. (Courts often discuss the concept of “intent”.) This is what I’m going to put on all my pages near the affiliate link banners:

“Make a purchase at one of the affiliates displayed on these pages, and I get a small percentage to keep this site going. Thanks!”

I believe it will suffice for now, and think the transparency will actually assist in building trust/credibility with readers.

s.c.

By: Tania Halpin

Tania Halpin — Tue, 24 Nov 2009 22:13:17 +0000

Such an interesting discussion! Elijah does have a bit of a point. Having the resources to monitor such a huge industry will be tough logistically (kind of like policing smoking in public places or littering)but the FTC are now responsible for policing the new rules. More than likely it will be a complaints based system where the FTC will have to investigate on a case by case basis and they will have software programs in place of some sort that will also ‘surf’ for offenders. Simply comply and no problem.

By: Geno

Geno — Tue, 24 Nov 2009 18:05:13 +0000

I actually believe otherwise. It is clear that the burden of policing is expected to be on the advertiser’s shoulders. Additionally, I do not believe that the FTC’s new rules (which kick into power just a week from now) are going to hurt one decent affiliate (that has nothing to hide, and really does add value). I therefore recommend that (a) merchants enter the proper wording into their affiliate programs’ TOS, and work out a monitoring system, while (b) affiliates add disclaimers to their blogs/sites.

By: Elijah

Elijah — Tue, 24 Nov 2009 14:44:50 +0000

Guys.. There is nothing to fear. There is absolutely no way that the FTC or any governing body, for that matter, can regulate the affiliate marketing industry. It’s like trying to regulate the internet..

Do you really think the United States government is going to pay people to sit around all day and worry about the millions of d-list bloggers across the globe?

The only people that really need to be concerned with this crap are those who are making “noise” online… Shoemoney, Copyblogger, John Chow etc…

If you make $2000 per month off blogging/aff marketing and have an email list of 1000 people… stop stressing. Nobody is going to be coming after you – it’s not worth their time.