Internet Marketing Braces For Implementation Of New FTC Guidelines

I suppose I heard something about the new FTC Guidelines for advertisers during the agencies public review process. Also, like most of us, in Internet Marketing I spend more time focusing on marketing than I do worrying about government regulation. After all, marketers market and regulators regulate.

It wasn't until I started to see some of the people I respect as my mentors begin to change their advertising copy in preparation for the implementation of the new FTC guidelines December 1 that I began realize that there may be more to this than a casual change. When I went through the guidelines it became clear the they could definitely impact the way most people advertise their products on the Internet.

One of the things that is most surprising to me is the FTC's decision to consider affiliate marketers to be in the same class as paid endorsers and its attempt to extend the regulation into social media. It now appears that the FTC considers it the responsibility of Blog owners to check the validity of any advertising claims placed on or linked to in their blogs or blog comments. Additionally, in order for those posts to be considered compliant they must be periodically checked to be sure that the claims made are still valid as time passes. This becomes even more bizarre when you consider the need to place prominent disclaimers on claims that are considered to be atypical.

I am still puzzling over how the FTC expects an affiliate marketer to place a disclaimer in a Twitter tweet or similar social media. As you can see, the implications are staggering. The FTC attempts to address some of these details in their guidance examples but a reading still leaves you feeling uncertain as to the best practice.

I can offer you some insight into the minds of regulators because I worked many years in the medical field having the responsibilities of an institutional compliance expert. While the regulating agencies are different their mindset is the same. Here is by best advice on this issue:

  1. Avoid over reacting and spending too much of your precious business resources on trying to perfect compliance. Changes in guidelines of this nature are almost always targeted at a specific problem the agency is addressing. If you are in the problem group, you probably already know it and have received information that the FTC is reviewing your methods.

  2. The fact that the problem is being addressed as a revised guideline as opposed to new law means that the guidelines will not likely be uniformly applied. That is to say that the FTC can and will look the other way in certain cases while vigorously pursuing other cases.

  3. Philosophies of regulators often change focus as they attempt to keep up with rapidly changing technology and society. However, because the regulatory process is lengthy, they often propose to enforce regulation that is either antiquated, impractical or unworkable. Your best position as a user of such technology is to provide sound ideas for a more workable solution to the regulators. Understanding the philosophy of, or the reason for the regulation can help you to provide an alternative workable solution. Understanding the philosophical position and developing action plans and business procedures in accord with the position is more important than strictly following regulation

  4. The idea of the FTC policing social media is almost as ludicrous as them being able to control SPAM email. The fact is the media companies could simply place their servers in countries such China or Russia where regulation and control are minimal. If the FTC then intends to track down any Twitter user that Tweets an affiliate link without admitting to it, they will certainly have a huge job on their hands with limited government resources.

  5. The positive (and likely intended) outcome of implementing these guidelines is that reputable advertisers will review their methods to be sure they avoid deceptive practices. And if the FTC can shut down a few disreputable spam blogs or CPA advertisers then none of us will be any worse off.

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