Since the inception of the internet, there has not been a lot of website compliance oversight from the FTC. But it is now obvious to the FTC that the growing number of fraudulent activity and complaints warranted a second look. What followed were new rules and regulations that will change the internet as we know it today.
What was once only an agency that only oversaw magazine ads, newspaper ads and TV ads, they were now looking at the same content as it related to the internet. The FTC is now adding in internet marketing to the mix of areas they regulate. It will affect you and it will affect the future of internet marketing.
• Do the new FTC laws affect you?
The new FTC laws were made to protect consumers from marketing practices that could potential harm them. That was the non legal definitions of why the act was made. If you want to know the legal jargon, a simple search on Google will pull up a number of legal sources that will show the details.
Anything you do online that has to do with representing a product, service or marketing is under the FTC umbrella. The claims on your website and the claims on the website of the owner of the product can get you into a lot of trouble. The claims need to be tested and found to be true. If there is no truth behind them and data cannot be provided to back them up, then they are considered to be in violation of the FTC rules. Even if you are an affiliate, you are still liable for the claims made by the product owner. If you are an affiliate marketer, it will not protect you.
What you have to remember is there are rules around everything and to find out more about these regulation you need to the the FTC website and really ready through the publications. They are kind of dry and not all that interesting to read, but they will give you facts on what is acceptable and what is considered bad practices. Website compliance is what you want to focus on and not knowing the right legal wording to keep on your website compliant will make you an easy target for the FTC.
• What are the fines?
Right now this is hard to say. Since the first cases against a marketer have yet too come in front of a judge, there is no way to know the exact fines and how they will be levied. What we do know at this time are the fines will be in the neighborhood of several thousand dollars. Currently there are websites under investigation and those sites will be the first to be tried in a court of law.
• Will I be able to continue business as usual?
No! Absolutely not! You want to ensure you are making changes to your website now. After December 1, 2009 you may be a FTC example if you are not in compliance. There is no grace period. If you are not in compliance it will only be a matter of time before you get a letter from the FTC or worse. You have to be more than truthful on your website. You have to be transparent.
• What will this means for the future of marketing products online?
This is actually a good thing for the future of marketing. It means all marketers that are using black hat tricks and marketing methods to cheat customers out of their hard earned dollars will eventually fade away. The internet will become an easier place to sell services and products. Affiliate marketers and business owners will be able to provide their services in a cleaner environment. Customers will start to trust more and that will lead to higher sales.
Once last thing to remember, since these laws are new, it will take some time for them to mature. During that time the laws will change and the legal jargon you use today to keep yourself in compliance may change at any time. Keep yourself ahead of the game and stay vigilant. Nothing is worst than having a letter sent to your door with a summons to appear before a court.
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