The Federal Trade Commission (FTC) is introducing a new set of regulations beginning December 1, 2009 in its effort to put a stop on deceptive advertising.
What does this mean?
Online businesses will be affected.
The new regulations demand greater transparency in the use of testimonials and endorsements in marketing.
How does it affect internet marketers outside US?
Honestly, I’m not sure.
If internet marketers outside US are actively selling or promoting products to US customers, I suppose compliance to the new FTC regulations is implicit. The credibility of an advertising copy will now be judged based on the new set of rules. The regular Joe consumer will now have FTC’s backing and certain types of advertising claims will be seen in a different light.
Since I’m no legal expert, one of the best commentaries I’ve found on this subject is on Joel Comm’s blog — specifically a long write-up by Joel’s attorney, Kevin Houchin. I thoroughly recommend reading it!
New FTC Rules for Testimonials and Endorsements in Marketing
To quote from Kevin, these are the compliance steps that a marketer could take:
- Audit your testimonial-based advertising for compliance with the rules.
- Make any adjustments to your existing advertising to bring existing materials into compliance.
- Take action to define generally expected performance metrics.
- Require affiliates to complete an application, then review and renew affiliate relationships with updated agreements.
- Revise affiliate marketing agreements.
- Disclose any connections you have with the sponsors of products you endorse.
- Initiate procedures to regularly secure the permission to use testimonials and endorsements.
- Do a Google search to make sure your name is not being associated with any products or services that might expose you to liability. If you find any sites, take active steps to get your name/testimonial removed if the use does not comply with the new Guidelines.
Here’s another must-read item:
FTC Publishes Final Guides Governing Endorsements, Testimonials
FTC Publishes Final Guides Governing Endorsements, Testimonials
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