11-28-2009, 02:54 PM
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
"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
"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.
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.