by Karen Frank, Networking Expert
As of December 1, 2009 the world of marketing got a wake-up call. The FTC (Federal Trade Commission) made it clear that "good intentions" and "not knowing the rules" is most definitely NOT going to fly and they are out to find you. Here's a brief overview of what you need to be aware of:
Note: I am NOT an attorney and this is NOT intended to be legal advice. I am working on getting an attorney to write something for you. Meanwhile here we go:
1 Use of Testimonials - "My result's aren't typical, but for me they're fantastic."
You may have seen this recently on TV. The bottom line is that saying "results not typical" is no longer enough. If you are using results based testimonials you must describe what the average results are. This doesn't mean you have to ditch your testimonials - even the ones where the results are extraordinary. You do need to edit them to omit the results OR prominently display what the average results are.
2. Testimonials must be current.
You must use current testimonials and - here's the kicker - you must check in with the person giving the testimonial periodically to make sure they feel the same way they did when they gave the testimonial! Yup. you read that right. So if someone used your products or services and loved them and took the time to write an amazing testimonial - and then changed their mind later - you need to take down the testimonial.
3. Affiliate relationships must be clearly indicated and your affiliate (as well as those who are your affiliates) must comply by the guidelines. If they don't YOU can get in trouble whether you know they have violated them or not.
Yikes. So if you're offering affiliate commissions you must have a system in place to make sure your affiliates are complying with the rules. If you are getting an affiliate commission, you have to make sure a "reasonable person" would understand you are getting paid for the endorsement.
So what do you do?
1. Check your testimonials. Whether they are online or in print, make sure yours comply with items 1 and 2 above.
2. Make sure it's really easy to tell that you have a financial relationship if you are promoting something and getting paid to do so.
Bottom line - These guidelines and their enforcement are really new. Until they play out in reality (read the courts) it's best to be safe rather than sorry.
Oh, and what's the penalty if you don't comply? $16,000 per incident.
- ouch!..
Until I can get an actual attorney to write an article - be careful out there!
Karen
Note: Please do not use this article in your newsletter without contacting me first. You can email me or call me at 925-279-1004
Thanks.