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+--- Thread: New rules affect promotions on the Internet (/showthread.php?tid=620)
New rules affect promotions on the Internet - Questioner - 11-28-2009
The U.S. government's Federal Trade Commission has new rules that go into effect December 1, and effect promotions on the Internet.
A couple of points that are useful to know:
If a message is an attempt to get people to buy something, the author of the message needs to let people know if the author expects to get paid for the promotion.
If a message is an attempt to get people to join a business situation, the author of the message needs to let people know who runs the business.
Here are some examples of the regulatory text. As you can see, anyone who honestly lets people know about their role in the business will be on the right side of the law.
FTC rules
Quote:When there exists a connection between the endorser and the seller of the advertised product which might materially affect the weight or credibility of the endorsement (i.e., the connection is not reasonably expected by the audience) such connection must be fully disclosed. .... When the endorser is neither represented in the advertisement as an expert nor is known to a significant portion of the viewing public, then the advertiser should clearly and conspicuously disclose either the payment or promise of compensation prior to and in exchange for the endorsement or the fact that the endorser knew or had reasons to know or to believe that if the endorsement favors the advertised product some benefit, such as an appearance on TV, would be extended to the endorser.
"What a great blog post!" is not a reasonable disclosure of "I have no interest in this forum except to make a quick buck by pretending to care, then selling some stuff."
more FTC rules
Quote:In connection with the advertising, offering, licensing, contracting, sale, or other promotion in or affecting commerce, as “commerce” is defined in the Federal Trade Commission Act, of any business opportunity, or any relationship which is represented either orally or in writing to be a business opportunity, it is an unfair or deceptive act or practice within the meaning of Section 5 of that Act for any business opportunity seller or business opportunity broker:
(a) To fail to furnish any prospective business opportunity purchaser with the following information accurately, clearly, and concisely stated, in a legible, written document at the earlier of the “time for making of disclosures” or the first “personal meeting”
1)(i) The official name and address and principal place of business of the business opportunity seller, and of the parent firm or holding company of the business opportunity seller, if any...
"What a great forum post, hi everyone!" is not a reasonable disclosure of "I don't care about this forum, I'm just here to recruit people to help me sell some stuff."
Getting on the wrong side of the law could have very serious implications for people who send out commercial messages disguised as personal opinions. The lack of disclosure could lead to jail time if the poster is in the U.S.
RE: New rules affect promotions on the Internet - Ali Quadir - 11-28-2009
How does this affect the owner of the websites where people spam their wares?
RE: New rules affect promotions on the Internet - Questioner - 11-28-2009
That's a great question, Ali. I'm not a lawyer, nor a moderator here, but here is my interpretation: it shouldn't be a problem here, given that the policies here already call for honesty.
"Philosophies and information which exhibit elements of deception, manipulative thinking... are considered to be not in alignment with the principles ... and are thus subject to moderation and/or removal.
Members who selfishly use the forum’s common resources without regard for its members' shared interests may be unsubscribed. This includes those who insist on promoting / showcasing themselves, their own websites, philosophies, products, services or other unrelated teachings."
Obviously, anything that runs afoul of the FTC rules would have already gone out of scope here.
As long as the owner of the website isn't also hiding a commercial intent, they should be fine, I believe.
By the way, it is OK to own a web site, post to a blog or forum, with information about something that makes you money if people buy. It's simply not OK to hide that commercial connection, or lie about it, or, of course, disrespect the rules of the particular forum.