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BobFirestone
Forums Member
Joined: 1 Jul 2009
Posts: 144
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#1 · Posted: 6 Oct 2009 12:59
I just looked at the new FTC guidelines that go into place later this year
http://www.ftc.gov/opa/2009/10/endortest.shtm
This stood out.
"The Federal Trade Commission today announced that it has approved final revisions to the guidance it gives to advertisers on how to keep their endorsement and testimonial ads in line with the FTC Act.
The notice incorporates several changes to the FTC's Guides Concerning the Use of Endorsements and Testimonials in Advertising, which address endorsements by consumers, experts, organizations, and celebrities, as well as the disclosure of important connections between advertisers and endorsers. The Guides were last updated in 1980."
"The Guides are administrative interpretations of the law intended to help advertisers comply with the Federal Trade Commission Act; they are not binding law themselves. In any law enforcement action challenging the allegedly deceptive use of testimonials or endorsements, the Commission would have the burden of proving that the challenged conduct violates the FTC Act."
I am not a lawyer but what I read there is that the law hasn't in fact changed. The only thing that has changed is the recommendation of the FTC as how to comply with the current law. This is interesting because that rally means nothing has changed. It is still up to the court to decide what is ok and what is over the top.
Are there are any lawyers want to tell me what I am missing and how I am wrong on this?
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joanpeterson
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Joined: 29 Jul 2009
Posts: 149
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#2 · Posted: 6 Oct 2009 13:49
I am not a lawyer so I can't answer your question.
But I have previously looked over this information and I know those at the warrior forum had a good discussion going on about it.
But it will be important to note for those marketers who may have used false testimonies on the business and the product. It may be more likely that they will be slapped by the FTC though I can't imagine that the FTC has the resources except to go after the big guys.
But I suppose if someone complained to the FTC about your website then maybe you might see them calling at your door.
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Dgitalnomad
Forums Member
Joined: 13 Oct 2009
Posts: 34
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#3 · Posted: 15 Oct 2009 22:34
This one is pretty scary. Do a search on what Frank Kern has to say on this. His advice is to stop using testimonials.
I never believe half of them anyway. It sure will crimp some peoples' style. 
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Newbie Shield
Joined: 22 Sep 2007
Posts: 2226
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#4 · Posted: 16 Oct 2009 10:42
Hi Bob,
I'm no lawyer and I'm not giving out legal advice here.
But, I do know that part of the spirit of this legalize is to protect consumers from fabricated testimonials.
Some of the additional FTC legalize has to do with publicizing the "paid" bit for paid reviews. Same with whether or not a product was sent free for a review and some similar stuff regarding paid links.
It "exposes" profit motives and provides protection for us all. It's a good thing for everyone.
~Newbie Shield~
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getagrip
Joined: 20 Feb 2006
Posts: 2086
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#5 · Posted: 26 Oct 2009 12:19
BobFirestone: The notice incorporates several changes to the FTC's Guides Concerning the Use of Endorsements and Testimonials in Advertising, which address endorsements by consumers, experts, organizations, and celebrities, as well as the disclosure of important connections between advertisers and endorsers. The Guides were last updated in 1980."
That's the main one that stands out - a lot of people online use fake testimonials and that kind of a thing, not that they have done anything different with the law on that.
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VictoriaNTC
Joined: 12 Mar 2008
Posts: 755
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#6 · Posted: 26 Oct 2009 17:13
I read we need to state that us as affiliates need to disclose the fact we earn a commission if a purchase is made?
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joanpeterson
Forums Member
Joined: 29 Jul 2009
Posts: 149
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#7 · Posted: 26 Oct 2009 18:49 · Edited by: joanpeterson
VictoriaNTC: I read we need to state that us as affiliates need to disclose the fact we earn a commission if a purchase is made?
I know that in cases where you have a review site done up on a product or products, and you then review a particular product, you then must disclose that you receive a commission on the sale of that product if someone buys from your website.
Therefore, the person then knows that your opinion may be somewhat biased towards the product you are promoting.
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Dgitalnomad
Forums Member
Joined: 13 Oct 2009
Posts: 34
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#8 · Posted: 28 Oct 2009 17:50
That's the way I understand it, too.
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makemoneyonline
Joined: 3 Sep 2006
Posts: 877
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#9 · Posted: 18 Nov 2009 21:57
Does this disclosure have to appear in a particular place on your website?
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joanpeterson
Forums Member
Joined: 29 Jul 2009
Posts: 149
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#10 · Posted: 18 Nov 2009 22:52
makemoneyonline
This is from the FTC website. It might help answer your question.
http://www.ftc.gov/os/2009/10/091005revisedendorsementguides.pdf
Example 7: A college student who has earned a reputation as a video game expert
maintains a personal weblog or "blog" where he posts entries about his gaming
experiences. Readers of his blog frequently seek his opinions about video game hardware
and software. As it has done in the past, the manufacturer of a newly released video game
system sends the student a free copy of the system and asks him to write about it on his
blog. He tests the new gaming system and writes a favorable review. Because his review is
disseminated via a form of consumer-generated media in which his relationship to the
advertiser is not inherently obvious, readers are unlikely to know that he has received the
video game system free of charge in exchange for his review of the product, and given the
value of the video game system, this fact likely would materially affect the credibility they
attach to his endorsement. Accordingly, the blogger should clearly and conspicuously
disclose that he received the gaming system free of charge. The manufacturer should
advise him at the time it provides the gaming system that this connection should be
disclosed, and it should have procedures in place to try to monitor his postings for
compliance.
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John Mann
Forums Member
Joined: 3 Dec 2009
Posts: 1
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#11 · Posted: 3 Dec 2009 13:02
Hi All,
Well the guidelines are in effect.
I found a great thread over at ShareASale that talks about the impact on Affiliate Marketers.
http://blog.shareasale.com/2009/10/06/bloggers-product-reviews-and-the-ftc-regulation s/
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John Mann
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