FTC Ruling and How It Affects You – The UK/European (Network) Internet Marketer

Depending on how long you have been in the internet marketing world, you may have heard of the new FTC ruling effecting internet marketers, affiliate marketers and bloggers!

Since internet marketing is generally international, most business will partake in one way or another, in the US trade market; be it via a system you use (MLSP), organization (Go Daddy, Hostgator, Google Adwords) or your buying customers, thus this ruling is relevant to you.

The FTC stands for Federal Trade Commission and the ruling came into effect December 1^st. When I first of heard about this ruling it was via an American website, and although I posed the question of how it would affect non-Americans I was never given an answer. Since that time, I have researched and asked around and have finally found the information from the guys from ‘Your Internet Buddies’ http://yourinternetbuddies.com

So what are these rulings?

First of all, they are not actually rulings, but an extension of an existing regulation. However they are:

1. You cannot use testimonials on your page without disclosing what the average person would make. For example “Results may vary. 99% of the people that buy this product will not do anything with it and so they will make nothing. Hopefully, you are part of the 1% of do-er’s and will see results”

2. You have to disclose if you are making commissions from the visitors purchasing anything from your site. For an example of a disclosure see Michael Fortin’s, the famous US copywriter: http://www.michelfortin.com/disclosure-policy/

From what I have read, most in the internet/affiliate marketing world see this as an inevitable change, what with the growing plethora of scam and flog (fake blogs) on the internet, such as Acaci Berries and Google Money – of which I have been a victim of both! The FTC is mostly concerned with these people and the fine if more than 10 complaints are received, I believe, is $11,000 per violation.

Does this affect you as UK or European based internet/affiliate marketer?

The simple is yes if you do any business in the US! Furthermore, generally when the US sneezes other countries catch their cold; so there is nothing to say that UK /European regulations will not be introduced in the near future. The other point to acknowledge is liability – who is actually liable for the fine, the affiliate or the vendor? From what I understand it is both parties, even though you have no control over what your affiliates does. Or even vica-versa, as an affiliate generally promotes a product with the marketing material giving to them by the affiliate vendor. So, whatever your position, affiliate or vendor, this subject is something you need to be aware of.

http://www.ehow.com/how_5573365_avoid-ftc-blog-endorsement-fine.html

How does it affect you if you are an affiliate marketer for Clickbank, or Amazon, or Apple itunes?

In regards to Clickbank, I understand that it is now a question of actually consuming the product that you are going to buy, so you are endorsing it honestly and ethically. So, find a subject you like, then a niche and buy the product, then start promoting it via article marketing, video marketing, forum marketing, etc, etc; remembering to state that you will receive a commission if reader purchases the product. Simple! (http://www.clickbank.com/blog/2009/11/25/new-ftc-endorsement-rules)

The same can, more or less, be said for book and music reviewers/bloggers. You have to declare if the product being reviewed has been brought or sent to you for free. Especially so, if you are a small time blogger, as the FTC do not feel you have established enough credibility, unlike the big boys in the industry.

Conclusion

Ultimately, the FTC does not have the manpower to monitor all the blogs out there in cyberspace, so many think the hooha over these new changes will blow over! But I think pre-warned is to be pre-armed, thus it is best to be aware of these new changes and that flexibility and adaptability is the order of the day; as well as transparency and ethical behaviour.

Finally, I would say one of the other main and more trivial but still important concerns for many is the aesthetic angle and the way one’s blog post will now flow, as one does not what to have disclaimers dotted all over a well thought out article/post. Especially as the FTC has stated that a disclaimer at the bottom of the post/article is no longer sufficient!!!

It will be interesting to see how these changes affect the terrain of internet/affiliate marketing in the coming days, months and years. I think the best way to plan for these effects, if any, is to create multiple sources of income and traffic/lead generation strategies, so as not to rely on one source, such as PPC or Google adwords, etc, etc.

If you would like to view the presentation on this subject by ‘Your Internet Buddies’ here is the link: http://tr.im/MYn6

Please share your thoughts on this post, as any advice from more experienced internet marketers, I am sure, will be appreciated by all!

Lavinia Osbourne

Financial Educator & Internet Network Marketer

http://www.MLMWealthCreationOnline.com

http://www.ButterflyWealthCreation.com

P.S. Finally, You may also be interested to know that on Saturday 13^th Feb ‘Your Internet Buddies’ will be holding an event called RIOT (Recurring Income Online Today) 2010, in which they will show you in one day how to set up your own online business. For further information watch the presentation stated above, then click this link to book your place: - http://tr.im/riot2010

Please note I am affiliate of this site and will receive a commission from any products you buy from them. On a personal note I have been very pleased with their product and services, thus far.