In this tutorial, I'll talk about affiliate marketing compliance and how it affects you as an affiliate marketer. Just keep in mind this isn't legal advice and if you have any types of issues with the Federal Trade Commission (FTC) you'll need to seek your own legal advice. I'm just trying to shed a little light on the new compliance laws the FTC has put in place so you can stay on the right side of the law.
As we all know affiliate marketing is built on a relationship between a brand and a publisher. Furthermore, this relationship should provide the consumer with something of value. No matter if it is a coupon, cash back, a product review, or even a special offer, it should provide something of value. The affiliate marketing channel provides advertisers with a unique opportunity and environment to do just that. However, it is important that each affiliate marketer knows and understand the boundaries of how they should operate.
Did You Know That The FTC Has Guideline For Affiliate Marketer?
I'm sure this is new to you and so many other affiliate marketers. Each day we can witness YouTube channels of popular influencers being shut down by the FTC for not complying with their guideline. Many of these influencers didn't even know about the guideline and how they were breaking the law.
On the other hand, there are many fraudulent affiliate marketers out there that use unethical tactics to fraud the marketers and the consumers. Many affiliate marketers manipulate the system to earn millions of dollars each year. The new FTC guidelines are set up to help marketers stop the abuse by fraudulent affiliate marketers.
What You Need to Know:
The FTC and the GDPR have set up strict guidelines for affiliate marketers and website owners to follow. The guidelines are put in place to protect the consumer and the merchants. Basically, this is for anyone who collects any form of data from a person and stores this information for personal use. The personal use could be a mailing list or sending offers to the people who've subscribed to your website or blog. So what does this mean and how can you comply with these new rules?
Obtain Consent:
It is now mandatory that the consumer gives their consent to any website that collects, stores, and uses their personal data for direct marketing. This includes delivering any type of commercial message to the person in the form of a phone call, an email message, through instant messages, social media accounts or any other technology available for communication online.
Easy Opt-Outs:
When a person agrees to be contacted don't take this as a sure fire thing. They have the right to change their minds at any time and unsubscribe to your newsletters. You have to provide a person with this option on each and every email you send to them. They have the right to change their minds and you need to respect their rights.
Understanding Your Merchants:
Furthermore, before working with any affiliate company it is necessary that you do your research. Make sure the program they offer you is legitimate and can provide you with a commission when you sell one of their products or recommend a person join a website. Make sure you choose a company that has an excellent track record, that sells reputable products, and has a good customer service base.
Product Research:
If you want to advertise a product or service for a company it is necessary that you understand this item. You shouldn't be promoting or writing a review about something that you've never used or tested before. This is false advertisement and not fair to the consumer. They look up to you for advice before purchasing this item. The new law clearly states that you should know the product you are promoting.
Understanding the Agreement:
Before you commit to an affiliate program it is necessary that you understand the full agreement the company offers. You should look for information about:
If your website is geared towards children it is fine for you to offer items for kids. However, you need to be aware if you do this the FTC will enforce the Children's Online Privacy Protection Act that prevents websites from marketing items aimed at young consumers. This protects the children from websites collecting their personal data or information. If you do sell such items it is mandatory that you receive parental permission before you are allowed to collect any information at all. You must be ******* clear what the information is used for and if you plan on using this information in other campaigns.
Disclosure:
Since 2013, it has been necessary for any blogger or social media influencers to disclose their relationship with the merchants they are working with. If you add a link to a product, talk about a product or promote a product you must disclose your relationship that you work with this company as an affiliate marketer. The announcements on your site must be clear and conspicuous. You can hide these announcements is small or hard to read test. A consumer must be able to find this easily and know you are promoting this product for another company.
Use Ethical Marketing Tactics:
It is your responsibility to be as honest with the consumer as you possibly can. You can't make false claims or verify a product you've never tested before. Furthermore, you can't claim a service is excellent if you've never used it. You must only use images that you have the right to use. This also goes for content that is posted on your site.
During your ad campaign, you can steal or siphon traffic from another affiliate website. You must also follow the rules for keyword bidding and use of keywords in your ad campaigns or reviews.
SPAM:
Using ethical marketing tactics also goes for your email campaigns. You can't send out a mass email mailing to your followers that are spam or could be perceived as spam. This act went into effect back in 2003 and carries a very high fine.l A person caught spamming a consumer can be fined up to $16,000 for each email you sent out. Choose your text carefully and make sure you're not spamming a person to buy a product you're promoting.
Remember this isn't a legal document and it is only a summary of what you need to know. it is best if you need any legal advice or you don't understand your obligations and responsibilities that you should contact the FTC or a lawyer o help you out.
As we all know affiliate marketing is built on a relationship between a brand and a publisher. Furthermore, this relationship should provide the consumer with something of value. No matter if it is a coupon, cash back, a product review, or even a special offer, it should provide something of value. The affiliate marketing channel provides advertisers with a unique opportunity and environment to do just that. However, it is important that each affiliate marketer knows and understand the boundaries of how they should operate.
Did You Know That The FTC Has Guideline For Affiliate Marketer?
I'm sure this is new to you and so many other affiliate marketers. Each day we can witness YouTube channels of popular influencers being shut down by the FTC for not complying with their guideline. Many of these influencers didn't even know about the guideline and how they were breaking the law.
On the other hand, there are many fraudulent affiliate marketers out there that use unethical tactics to fraud the marketers and the consumers. Many affiliate marketers manipulate the system to earn millions of dollars each year. The new FTC guidelines are set up to help marketers stop the abuse by fraudulent affiliate marketers.
What You Need to Know:
The FTC and the GDPR have set up strict guidelines for affiliate marketers and website owners to follow. The guidelines are put in place to protect the consumer and the merchants. Basically, this is for anyone who collects any form of data from a person and stores this information for personal use. The personal use could be a mailing list or sending offers to the people who've subscribed to your website or blog. So what does this mean and how can you comply with these new rules?
Obtain Consent:
It is now mandatory that the consumer gives their consent to any website that collects, stores, and uses their personal data for direct marketing. This includes delivering any type of commercial message to the person in the form of a phone call, an email message, through instant messages, social media accounts or any other technology available for communication online.
Easy Opt-Outs:
When a person agrees to be contacted don't take this as a sure fire thing. They have the right to change their minds at any time and unsubscribe to your newsletters. You have to provide a person with this option on each and every email you send to them. They have the right to change their minds and you need to respect their rights.
Understanding Your Merchants:
Furthermore, before working with any affiliate company it is necessary that you do your research. Make sure the program they offer you is legitimate and can provide you with a commission when you sell one of their products or recommend a person join a website. Make sure you choose a company that has an excellent track record, that sells reputable products, and has a good customer service base.
Product Research:
If you want to advertise a product or service for a company it is necessary that you understand this item. You shouldn't be promoting or writing a review about something that you've never used or tested before. This is false advertisement and not fair to the consumer. They look up to you for advice before purchasing this item. The new law clearly states that you should know the product you are promoting.
Understanding the Agreement:
Before you commit to an affiliate program it is necessary that you understand the full agreement the company offers. You should look for information about:
- How you'll be paid. If they pay a commission rate or if they pay per clicks.
- What is the minimum earning threshold that you must meet before you are paid?
- Does the company have a clause in the agreement for early termination of the contract?
- What is the limitation for the merchant if there is any legal issues arise when working with them.
If your website is geared towards children it is fine for you to offer items for kids. However, you need to be aware if you do this the FTC will enforce the Children's Online Privacy Protection Act that prevents websites from marketing items aimed at young consumers. This protects the children from websites collecting their personal data or information. If you do sell such items it is mandatory that you receive parental permission before you are allowed to collect any information at all. You must be ******* clear what the information is used for and if you plan on using this information in other campaigns.
Disclosure:
Since 2013, it has been necessary for any blogger or social media influencers to disclose their relationship with the merchants they are working with. If you add a link to a product, talk about a product or promote a product you must disclose your relationship that you work with this company as an affiliate marketer. The announcements on your site must be clear and conspicuous. You can hide these announcements is small or hard to read test. A consumer must be able to find this easily and know you are promoting this product for another company.
Use Ethical Marketing Tactics:
It is your responsibility to be as honest with the consumer as you possibly can. You can't make false claims or verify a product you've never tested before. Furthermore, you can't claim a service is excellent if you've never used it. You must only use images that you have the right to use. This also goes for content that is posted on your site.
During your ad campaign, you can steal or siphon traffic from another affiliate website. You must also follow the rules for keyword bidding and use of keywords in your ad campaigns or reviews.
SPAM:
Using ethical marketing tactics also goes for your email campaigns. You can't send out a mass email mailing to your followers that are spam or could be perceived as spam. This act went into effect back in 2003 and carries a very high fine.l A person caught spamming a consumer can be fined up to $16,000 for each email you sent out. Choose your text carefully and make sure you're not spamming a person to buy a product you're promoting.
Remember this isn't a legal document and it is only a summary of what you need to know. it is best if you need any legal advice or you don't understand your obligations and responsibilities that you should contact the FTC or a lawyer o help you out.