FTC Disclosure Policy – Some More Thoughts

Thursday, December 3rd, 2009 at 7:47 am

I just wanted to add some more thoughts on this.

Firstly, probably the most important point is that of a material connection disclosure.

Here’s a screen grab from the video:-

Affiliate Disclosure

That’s the key.”The disclosure must be sufficient to alert the consumer that of the connection between the endorser and the product.”

So, if you are doing reviews and have a link to the product in that review and you receive a commision, disclosure is required.

And I therefore believe that what we have implemented on the Product Review pages on this site together with our Review Disclosure Policy is sufficient.

Transparency is the main thing that the FTC are seeking.

Other areas that require care are:-

Making Dubious Claims – It is important that we do not misrepresent a product or service or even where you may have had success with a product such claims cannot be regarded as typical. For example stating that you earn $100,000 / year thanks to Wealthy Affiliate. I mean you may do but that is not typical for the vast majority.

Some of the other points in the videos may not concern everyone but they do have possible implications.

Discussed at some length is the whole responsibilty that sellers (or merchants) have with regard to their affiliates:-

Affiliate Disclosure Sellers

Monitor affiliates?

OK, you may not have your own product and therefore have no affiliates but how will this impact a Clickbank or Commission Junction merchant? And, therefore you as the affiliate?

I don’t know the answer to that at this point but I would suggest that as minimum you have a Review Diclosure Policy on your websites.

Thad and I will also need to discuss what additional instruction we need to give to our own affiliates but again, I would imagine this will at least require that ANC affiliates have a Review Disclosure Policy.

We’ll keep you posted.