Is your site really compliant with FTC requirements?
I recently received an email from a supplier for whom I'm an affiliate, clarifying their expectations from me as an affiliate in accordance with FTC requirements.
It was an interesting email so I consulted directly with FTC guidelines to check and these are the main points that stood out for me:
- You must disclose you have a relationship with whoever is paying you commissions clearly and conspicuously on your website. e.g I am paid a commission for purchases made through links in this post. The closer this disclosure is to the link the better.
- An affiliate disclosure on a separate page, with a link on a menu is not sufficient.
- Disclosing this on your "About" page is not sufficient.
- You could write Disclosure: I could get paid when you click links on this site. Click here for details and then link to your disclosure page.
- Readers must be able to see the disclosure easily, they should not have to hunt for it.
- Putting (Affiliate link) after your links is not sufficient as the reader may not understand what this means and still not understand that you get paid for purchases made via the link.
The FTC is quite clear about what complies and what doesn't.
Despite this, I have come across a lot of sites and even advice here at WA not matching these requirements.
I'm assuming this is either because people don't know about these requirements, think the requirements will detract from the effectiveness of their sites, or they're simply willing to take a chance, hopeful that they won't ever run into problems of some kind.
UPDATE - It seems as if some of what I have written about are fairly new changes which will explain why not everybody has caught up yet. See Jeanine's comment below.
How do you deal with this on your sites? If not as required, why not? I'd love to hear your thoughts
Recent Comments
58
I hope that, even if these are new rules to the FTC, that WA adds the new training accordingly. I’m just in week three but the Affilate Disclosure page training should reflect these ‘newer’ rules. Preferably sooner than later. Thanks for the post! This will help me keep my integrity both on and offline
Hi Tony,
Apparently some of what I've written about fairly new changes so I guess not everybody is caught up yet. I'm sure everything will be updated soon but in the meantime it's good to know what's required so we can comply.
~Mark
Since I work for an affiliate network, I have to deal with this all the time. Some of the guidelines you just mentioned are fairly new with the FTC, so some affiliates are still adjusting to it. There are several different ways to display the disclosure. but you are quite correct - the disclosure must appear right before the affiliate link, not refer to it as affiliate marketing, and say that you could earn a commission if they click through a link and purchase something. Any other location - header, footer, sidebar, separate page - does not fulfill FTC requirements.
FYI, non-compliance doesn't just affect the merchants. Affiliates can be fined too.
Hi Jeannine,
Thanks so much for for confirming this and also for the information that some of the changes are new. That would explain why not everybody has caught up yet.
~Mark
Yeah, I know what you mean. Unfortunately the FTC has had to come down so hard because there were shady affiliates promoting things like weight loss or skin care programs with fake testimonials and unclear terms. Now we're all having to pay for it.
Hello Jeannine!
I'm still a bit confused about the Affiliate Disclosure, Affiliate Disclaimer and where to place it. I'd be so glad if you would like to help me getting this clarified.
Is the following correct?
An Affiliate Disclosure says basically:
"I am paid a commission for purchases made through links in this post."
This must appear right before the affiliate link (the product or the service I'm promoting).
Jeannine, shall I make a button (which opens up the page with my Affiliate Disclosure-text) above each productlink? What about when I have a link in my blogtext? Do I have to place an Affiliate Disclosure-button at the beginning of each blog? Then there will be a lot of such buttons "clotting" my blogs.
What about Affiliate Disclaimers (the Statement to limit your liability)?
My Example:
On this site you find health, fitness and nutritional information and it is meant for educational purposes only. This information is not a substitute for professional medical advice, diagnosis, or treatment.
Always consult with a physician or other health-care professional, should you have any concerns or questions about your health.
Shall I place this text at the end of each blog or shall I create a page and link it with a button? Or can I put it in the sidebar?
:-) Pernilla
See more comments
Here's the part that always confuses me: https://www.ftc.gov/tips-advice/business-center/guidance/ftcs-endorsement-guides-what-people-are-asking
_____________________
WHEN DOES THE FTC ACT APPLY TO ENDORSEMENTS?
Question: I’m a blogger. I heard that every time I mention a product on my blog, I have to say whether I got it for free or paid for it myself. Is that true?
Answer: No. If you mention a product you paid for yourself, there isn’t an issue. Nor is it an issue if you get the product for free because a store is giving out free samples to its customers.
The FTC is only concerned about endorsements that are made on behalf of a sponsoring advertiser. For example, an endorsement would be covered by the FTC Act if an advertiser – or someone working for an advertiser – pays you or gives you something of value to mention a product. If you receive free products or other perks with the expectation that you’ll promote or discuss the advertiser’s products in your blog, you’re covered. Bloggers who are part of network marketing programs, where they sign up to receive free product samples in exchange for writing about them, also are covered.
___________________________________
Unless I'm reading it wrong, it sounds like if you pay for the product yourself, you don't have to mention the relationship at all.
Of course, transparency is always best! But do you know of another part of the FTC guidelines which could make it more clear on what disclosures are necessary?
Hi Nathaniel
I have to admit I find the part about endorsements fairly confusing myself and this obviously is important to get right since most of us spend a lot of time writing reviews on our sites.
I also interpret the endorsement guideline to be as you suggest that no relationship has to be mentioned if you pay for the product yourself.
Perhaps Kyle or other marketers who know for sure (is that possible?) can clarify.
As for the disclosures aspect - see this link:
https://www.ftc.gov/tips-advice/business-center/guidance/ftcs-endorsement-guides-what-people-are-asking#affiliateornetwork
Under the heading - WHAT ABOUT AFFILIATE OR NETWORK MARKETING?
It is an FTC document in which they address questions and which for me is a lot clearer than the actual guidelines document.
~Mark