FTC Proposes New Guidelines for Online Marketing
The federal Trade Commission is going to be looking at setting guidelines and standards for best practices for the online marketing industry and consumers. The FTC is suggesting that bloggers and social media marketers who use false statements about products they promote will be held liable. If the proposed guidelines come into effect, affiliate publishers and marketers will need to use the same sort of strategies and care that traditional publishers and infomercial producers do.
This is part of the FTC’s advertising-practices divisions effort to “update guidelines that are 30 years old.”
The FTC commissioners will be voting on the new proposed guidelines later in the summer. This is part of the new regulation-minded administration in Washington that wants to set better standards, definitions and best practices in the online marketing industry.The administration will be formalizing many areas of our business’s framework from paying taxes to outlawing unethical business practices.
The online marketing industry is still very young and has been allowed to have too much undefined grey area for marketers and consumers. This effort will cause some initial pain and awkwardness for some of our online marketing community, but in the long run our industry will greatly benefit. This will create a more solid foundation and greater credibility for growth – especially in the the performance marketing segment of our markets.
We will be launching a compliance resource center in our platform for our advertising and affiliate publisher partners. The center will be updated with all the new policies and procedures plus other hosted compliance solutions. We are looking forward to our industry’s next evolution in becoming a more mature and vibrant business. Stay tuned and also make sure to reach out to us if you need any help understanding the many moving parts of compliance and our markets.
32 Comments, Comment or Ping
Brooke
Article about FTC getting involved in online marketing – research internet lawyers?
Apr 28th, 2009
mediatrust
FTC proposes new guidelines for online marketing: http://ping.fm/4bvCN
This comment was originally posted on Twitter
Apr 28th, 2009
AmericanCliche
Truth in online marketing? The FTC is all over this: http://ping.fm/Dqjhb
This comment was originally posted on Twitter
Apr 28th, 2009
KenRobbins
FTC to Hammer affiliate marketing. RT: @Dr_Ngo RT @mediatrust FTC’s new plan : http://ping.fm/4bvCN
This comment was originally posted on Twitter
Apr 28th, 2009
jeffreygoodwin
FTC Proposes New Guidelines for Online Marketing – http://tr.im/jWA3
This comment was originally posted on Twitter
Apr 28th, 2009
zreaction
FTC Proposes New Guidelines for Online Marketing – http://tr.im/jWA3
This comment was originally posted on Twitter
Apr 28th, 2009
2createawebsite
FTC will propose guidelines for bloggers/online marketers. I think this is good news. Thanks for the link @mediatrust http://ping.fm/4bvCN
This comment was originally posted on Twitter
Apr 28th, 2009
JMom
FTC Proposes New Guidelines for Online Marketing – http://tinyurl.com/dkhd6m
This comment was originally posted on Twitter
Apr 28th, 2009
RelateMedia
FTC Proposes New Guidelines for Online Marketing: http://is.gd/vc4p
This comment was originally posted on Twitter
Apr 28th, 2009
bloggy
I seriously doubt this…
Apr 28th, 2009
Peter Bordes
What is it that you seriously doubt? That the FTC is going to be doing any regulation at all?
The only reason to research internet lawyers is if you are off in the dark deep end of the pool. We are mostly going to see standards and definitions put in to place. Which we need as an industry.
Do you think regulation is bad or good?
Apr 28th, 2009
Peter Bordes
Here is a post from Nicky Cakes on the “google money tree” program that the Texas AG is now going after http://www.nickycakes.com/google-money-tree-hit-by-texas-attorney-general-can-you-really-be-this-stupid/
This clearly shows why we need better regulation and compliance to protect consumers, affiliates and advertisers.
Nicky thanks for brining this to my attention and good post!
Apr 29th, 2009
Greg
I think this is a good thing as it will make people more comfortable with what is out on the web and more people will become involved. So many people are just “sitting on the sidelines” because they don’t trust what is out there. This might help that.
Apr 29th, 2009
Alex
It´s about frikken time that this happens. I came here from Nicky Cakes post and can´t agree with him further. Networks should make sure that only trustworthy merchants get in, not those rebill bastards.
And no, don´t tell me rebilling has been around for years. It´s shady and we all know that and after reading about google money tree being hit maybe some people are gonna wake up.
As long as this continues, I need to call myself an affiliate, having a bad feeling in my gut. The reputation of this industry really needs to get up. Like those guys around the corner, selling real rolex watches…
I talked to my AM´s from different networks about this but the only answer I get about f.e. Acai being a scam is “I´m not an affiliate marketer, I don´t know.”..come on!
Thanks for posting this Peter, keep it up. There really needs to be a platform making sure to establish a high quality level, so networks, affiliates, consumers are satisfied and only reputable merchants (after a thorough screening) get in.
Apr 29th, 2009
thecoleone
FTC Proposes New Guidelines for Online Marketing – http://tinyurl.com/dkhd6m
This comment was originally posted on Twitter
Apr 29th, 2009
Reuben D. Rock
I’ll be interested to see what comes of this – and how far the regulation extends. I am not advocating a total free-for-all when it comes to online marketing. But I do believe many people should take responsibility for their purchase decisions. If you think a product looks questionable, or a claim sounds outrageous, why are you buying it? And if a product doesn’t deliver as promised, get a refund or file a chargeback (which many people will do even before asking for a refund). Now, I do sympathize with anybody who has been victim to an outright scam. If you buy something online, never receive the shipment, and the company disappears – that’s a problem that should be dealt with.
I am a little bit nervous about imposing too heavy of a crackdown here. And there may be a disparity between the impact on the small business vs. the large business (who may be used to the FTC already). Combine the FTC regulation with new affiliate taxes lurking around the corner, and we’re on our way to a different playground for anyone relying on their extra Internet income.
Apr 30th, 2009
Peter Bordes
Greg & Alex
I agree and its a good point. there are many large brands that are looking at the performance marketing space. Some are hesitant due to the legacy issues,lack of transparency, standards, regulation etc. We need to ALL work together to improve every aspect across the board so that our segment of the industry can grow to its fullest potential. Which is very large. Especially with the economy causing companies to look at better more accountable ways of marketing.
We as an industry have to get our S—t together and be responsible and accountable for our creating a better community that works together to keep this stuff from happening. There are many very legitimate advertisers, marketers, affiliate and networks who are hurt by there being to much grey area for these programs to happen.
We need to think about the bigger long term picture of our business and industry. NOT the short term “how much money can i stuff in my pocket and move on to the next”. I personally think all the network adds with dollars stuffed in pockets is the wrong message and makes us all look cheap and cheesy!
we are ALL responsible for everyone… affiliates, advertisers and consumers.
Alex .. THANK YOU for your thoughts and i totally agree with your last sentence. Stay tuned !
Apr 30th, 2009
Alex
Thanks for your effort Peter. I´ll stay tuned.
However, a pity to see that only a few people commented on this… – I hope there´s much more interest in these cases than those few comments display?
May 1st, 2009
Peter Bordes
I had several Twitters come in asking for links to info regarding the FTC. Here are a few helpful ones. Especially the GUIDELINES one.
Advertising Guidance
http://www.ftc.gov/bcp/guides/guides.shtm
http://www.ftc.gov/opa/2008/11/endorsements.shtm
http://adage.com/article?article_id=135938
May 2nd, 2009
Peter Bordes
Reuben
I hear you on the “to much all at once” front. i hope that the FTC will ease into this and not swing the pendulum to far to fast in the other direction. We have many new things along with the taxes issue etc that we need to all work together on. I think in the end run it will be a good thing. We have a young industry that has had very little Gov guidance.
Many people form different parts of our industry are now coming together and working with the PMA http://www.performancemarketingalliance.com to create a unified and focused effort to help and make sure we can maintain the integrity and growth of affiliate performance marketing.
Its very important that everyone comes together as a community and work together on these issues. On an aggregate basis we are an enormous segment of the online marketing industry.. Much bigger than anyone really knows because we have a legacy issue of being fragmented and siloed.
This is changing and will get better as long as we all work as a community and use the “wisdom of crowds” with a hint of “ground swell” ( 2 of my favorite books)
May 2nd, 2009
mediatrustpete
@Jon_Olsen i placed some links in the FTC post comments http://tinyurl.com/dkhd6m for you
This comment was originally posted on Twitter
May 2nd, 2009
mediatrustpete
@ricdes http://tinyurl.com/dkhd6m i placed 3 links in the FTC post comments that are helpful
This comment was originally posted on Twitter
May 2nd, 2009
GloriaRand
FTC Proposes New Guidelines for Online Marketing – http://tinyurl.com/dkhd6m
This comment was originally posted on Twitter
May 4th, 2009
joebarnes
FTC Proposes New Guidelines for Online Marketing – http://tinyurl.com/dkhd6m
This comment was originally posted on Twitter
May 4th, 2009
vpynchon
new FTC guidelines for online marketing here: http://tinyurl.com/dkhd6m
This comment was originally posted on Twitter
May 4th, 2009
Alonis
Lamer accts that make ridiculous claims? Your days are numbered. FTC proposes new guidelines for online marketing: http://bit.ly/13UspF
This comment was originally posted on Twitter
May 4th, 2009
Ciprian Gherghescu
Looking forward to the new guidelines and standards.
@onlysocialmedia
May 12th, 2009
John
Ha! Talk about pot calling the kettle black! Mediatrust carried all the scammy Just Think Media / Jesse Willms offers (there is even a glowing testimonial from Mediatrust on the JustThink website). That makes you and your affiliates as bad as the scammers.
http://blog.mediatrust.com/2009/05/just-think-media-rewards/
http://www.webcops.net/just_think_media_spam_scams_8001.html
May 13th, 2010
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