On Dec.1, 2009, new Federal Trade Commission (FTC) rules regarding testimonials and endorsements went into effect.
Affiliate marketers who use testimonial advertisements, blogging and celebrity endorsements to promote products must now disclose the fact that they will be financially rewarded if a user clicks on an affiliate link and buys the product being promoted.
Blogs and bloggers are significantly affected by this rule and should take note.
According to the FTC “Guides Concerning the Use of Endorsements and Testimonials in Advertising”, no matter what the tone of a blog post, if the advertiser “receives cash or in-kind payment to review a product,” the post is considered an endorsement” and as such is bound by the new FTC rules of disclosure.
But it’s not JUST blogs … any comment, tweet, post on a FaceBook page or post on a forum, must be accompanied by a disclosure statement.
Every affiliate marketer is asking himself how the new FTC rules will affect his promotion of products. The big one is … how should blog disclosure statements be worded?
Many ideas about disclosure statements have hit the Internet recently.
One that you should check out is from Tim Carter of askthebuilder.com. He developed his own disclosure policy and linked to it his Legal statement, which can be accessed from every page of his website in the footer navigation.
It’s still hard to say how the new FTC rules will affect affiliate marketing.
The rules have been in effect for less than a month and we’ll all have to wait and see. But remember, it’s always the best policy to follow the rules.
Create your disclosure statement, check with your lawyer to make sure that it follows the FTC rules, and follow it.
And please remember, this post is not intended to substitute for legal advice. Be sure to check with your lawyer to assure that your business is in full compliance with the law.
Guides Concerning the Use of Endorsements and Testimonials in Advertising
