Tag: FTC Compliance

FTC Compliance: Blogger Disclosure System

As most of you know by now, I’ve been very busy since the new FTC Rules regarding the use of testimonials and endorsements in advertising were released on October 5th. Remember those rules become effective next Tuesday, December 1, 2009.

I’ve been doing Webinars, Blogtalkradio shows, phone interviews, magazine interviews (no TV appearances yet, but amazingly the national TV media doesn’t seem to be paying much attention to this yet…). I am also a co-creator of the new FTC Toolkit and Site Compliant program and expect to see you using the new Site Compliant Trust Seal right away.  Here’s mine:

One question has been coming up over and over – especially for bloggers.

Do I have to put a disclosure next to every affiliate link or can I do one blanket disclosure?

Based on the new rules and the interviews with FTC officials that I’ve been reading, I think you need to do BOTH. So, I set up this site as an example.

Here’s what you’ll find:

1. A Disclosure Page

Some things you’ll notice about this page:

  • First, it makes the required disclosures of material connection with each organization or entity that pays me a commission for links.
  • Second, it makes the statement that I intend to be compliant with the FTC rules.
  • Third, it gives my contact information.
  • Forth, it tells people how I’m going to disclose material connections on my site.
  • Fifth, it turns the disclosure page into another marketing page by including examples of all the affiliate links!  (I think this is brilliant…, but it’s 3:49am on Thanksgiving for Pete’s sake.)

2. Affiliate disclosures next to every element that visitors might not think I have a material connection with.

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We’ll be posting this disclosure form to the membership area at www.sitecompliant.com for members to use as part of their membership. Yes, I know it’s short and easy enough that plenty of people are just going to steal this and use it without permission.  I can live with that if it helps a few people, but I also sincerely hope that most people will do the right thing (and find an incredible value) by going to www.sitecompliant.com, purchasing the FTC Toolkit and getting their 60-day free membership in the Site Compliant program and start using the trust seal on their site too.

YOU SHOULD BE PART OF SITE COMPLIANT starting NOW.

Is your site compliant?
Don’t risk it. Get The FTC Toolkit now! (I’m an affiliate and co-owner)

OH! And I hope you have a GREAT Thanksgiving, 2009. We all have a great deal to be thankful for. 🙂

Major Announcement! New FTC Toolkit and Site Compliant program – Webinar

As many of you know, the Federal Trade Commission (FTC) issued new rules relative to endorsements and testimonials.  Now, if you use endorsements and testimonials in your marketing (and every marketer worth their salt does) you could be fined thousands of dollars for “deceptive” advertising EVEN IF ALL YOUR TESTIMONIALS ARE ABSOLUTELY TRUE!

I’ll be leading a Webinar with my friend, marketing partner on this project, client, and internet marketing Guru, Joel Comm next Monday, November 9th at 6:00pm MOUNTAIN time. The Webinar is free, but space is limited. You can sign up HERE.

Again: sign up for the free Webniar Here.  Do it now.  Space will fill up quickly.

The new rules go into effect December 1, 2009.  Yes, in only a few weeks.  So are you ready?

Do you even know where to begin?

No?

I didn’t think so.

Well, don’t feel like the Lone Ranger. Most people don’t – and it’s not your fault because the new guidelines were just released a few weeks ago and they are subject to some different interpretations.

Joel and I will be discussing many of the implications of the new rules and introducing the project, product, and system that I’ve been working on almost non-stop ever since the new rules came out. Really, I’ve been dreaming about this stuff. Just ask my wife and friends – they’re sick of listening to me talk about this. Of course as a co-author of this product I’m hugely invested and probably a bit biased, but I’m convinced this is really going to help a lot of people quickly figure out what they need to do.

The product is a guide to the new rules we’re calling the FTC Toolkit. It is a thorough guide to the new rules including analysis, self-assessment checklists, sample disclosures, sample agreements, and sample policies. Incredible stuff here because I’ve not been working on this alone. I’ve assembled a team of lawyers, marketers, and communications professionals with over 75 years of combined experience in the relative material to develop the Toolkit.

We haven’t stopped there, because the FTC isn’t stopping there. These rules are going to evolve as the FTC starts enforcing the rules against people who don’t comply. So, people who purchase the FTC Toolkit will be able to join the Site Compliant(tm) program and receive ongoing updates to the Toolkit content and other timely information as the FTC begins enforcement.

And, we didn’t stop there. Members of the Site Compliant(tm) program will also be able to apply for and be able to use what we believe is the Internet’s first compliance “Trust Seal” that they will be able to proudly display on their site as a signal to consumers and to the FTC that they, as a member of the program, are taking a proactive and affirmative approach to being and remaining compliant.

This has taken a lot of work by a bunch of people over the last few weeks. If you were going to invest in this content from a lawyer on your own you would be need to budget at least $50,000 in legal fees, because my team has at least that much otherwise-billable time invested in this product.

Join us on the free Webinar to learn more. Again, that’s THIS MONDAY, November 9th at 6:00pm Mountain. Sign up HERE.

Remember to sign up NOW because space on the Webinar is limited.

Target Rich Environment

My friend Joel Rothman posted the following discussion relating to the FTC’s attitude toward the new rules regarding deceptive advertising in the context of endorsements and testimonials.  This is seriously important stuff for everyone that uses testimonials in their marketing – which is everyone.  So, PAY Attention!

… Then Vladeck (speaking of David Vladeck, Director of the Federal Trade Commission Bureau of Consumer Protection) turned to the new FTC Endorsement Guides.  Everyone held their breath.

Before I go further it is important to remember that Vladeck comes from a consumer protection background.   He led the Public Citizen Litigation Group for 20+ years.

On the endorsement guides Vladeck’s message was clear:

1. Disclaimers like “results not typical” are useless and will be attacked by FTC.

2. Advertisers who make claims “will be held responsible for their claims.”

3. If your promotion relies only on testimonials “you will have a problem with us.”

Vladeck described this area for the FTC as a “target rich enviornment” in which they intend to pursue violators using all the resources at their disposal.  And when the 1000+ enforcement personnel at the FTC run out, FTC plans to call on the state attorneys’ general.  When the AG’s are too busy, Vladeck says that they will do as the FDA does and publish warning letters on the internet in order to “bully companies into compliance.”

Despite the backpeddling FTC has done in the media recently, Vladeck made it clear that he will enforce Section 5 of the Federal Trade Commission Act and the endorsement guides.  It was as if Vladeck was drawing imaginary targets on foreheads around the room…

I spoke to several attorneys and CEOs at the reception that evening about the regulatory problem the enforcement guides present and everyone agreed that the problem is very serious.  One observed, candidly, that the problem was that “you never know what marketing is doing until it is too late.”

After all, lawyers and regulatory execs are considered “sales killers.”  We are never consulted by marketing in advance of a promotion for fear we will put the kibosh on the latest profitable social media marketing strategy.

So what’s next from the FTC?  Who knows.  After all, it’s a “target rich environment.”

For the full article. Visit Joel’s blog HERE.

Joel and I are working together on a new product and program to help companies of all sizes and in all niches become and remain compliant with the new rules. I should have more news about that to share with you on Thursday or Friday of this week.  If you are interested in helping promote this product, email me.