New FTC Rules For Internet Marketers

The new FTC Rules for internet marketers goes into effect TODAY, December 1, 2009.

The new FTC Rules should dramatically alter the marketing tactics of many.

If you are not familiar with the new FTC rules let me explain. Under the new FTC rules marketers, including those using blogs and other forms of social media, can no longer offer testimonials or reviews of a product without disclosing their relationship.

If someone posting a review is an affiliate who would profit from the sale of the product being reviewed it must be disclosed. If the reviewer has received product free in return for the review it must be disclosed.

Testimonials and endorsements are also affected by the new FTC rules.

Under the new FTC rules disclaimers such as "Individual results may vary" or "Results not typical" will no longer suffice. Under the new rules, advertisements that feature a consumer and convey his or her experience with a product or service as typical when that is not the case will be required to clearly disclose the "results that consumers can generally expect".

For example, a website features “before” and “after” pictures of a woman who says “I lost 50 pounds in 6 months with WeightAway,” the ad is likely to convey that her experience is representative of what consumers will generally achieve. Therefore, if consumers cannot generally expect to achieve such results, the ad should clearly and conspicuously disclose what they can expect to lose in the depicted circumstances (e.g., “most women who use WeightAway for six months lose at least 15 pounds”).

Hopefully, these new FTC rules will create more transparency and reduce the deceptive practices of some advertisers and marketers who, I feel, have been responsible for the high level of distrust that currently exists in the marketplace.

If you would like to read the guidelines yourself, and see many examples of what IS and IS NOT acceptable, you can download the guidelines from the FTC here.

And please note, these rules apply to blogging and social media such as Facebook, Twitter, etc., as well.

Again, Click Here to be taken to the FTC's website to read the guidelines for yourself.