Posts tagged: Internet Marketing

FTC Ruling AND IT’s Effect ON Blogging

I’m sharing this blog post by Frank Kern.

Frank Kern on the new FTC regulations

http://masscontrolsite.com/blog

I think he has done a good job addressing this new ruling on the part of the FDA and it’s effect on Internet marketing and blog posting. I addressed this subject in an earlier post before the ruling became law, so here it is.

New FTC Thing Is A Bigger Deal Than You Might Think

FTC Declares Shenanigans On All Kinds Of Stuff!

OK. Before we begin, let me make the following disclaimer: I AM NOT A LAWYER, NONE OF THIS SHOULD BE CONSIDERED LEGAL ADVICE.

(Duh!)

Onward…

Most people think the new FTC guidelines are aimed at stopping those fake blog sites.

You know the ones, right? Where the “blogger” is a totally non existent person and it’s just some made up story to promote a CPA offer?

I’m sure you’ve seen them.

Here’s a list of fake weight loss blogs

http://www.weightlossweapons.com/blog/weight-loss-scam-sites/

…And here’s a list of fake “Make Money” blogs:

http://workathometruth.com/classifieds/m-fake-mon/

And while I’m sure these fake blogs played a major role in the FTC ruling, all those people telling you that this is all about blogs …

ARE WRONG.

Here’s the deal:

First, if you’re getting paid to sell something on a blog, yeah, you should go ahead and let people know. Maybe mention it in the TOS, or maybe say something like, “If you decide to get this thing, click this link first and they’ll pay me a little commission money so I can finally retire to that little fishing village in Mexico!” (<—Like I said, this is not legal advice! Get advice on this from a real lawyer and NOT me.)

Personally, I don’t think the whole “blog thing” is that big of a deal for REAL marketers like us and I think it’ll be super easy to comply with the FTC.

BUT HERE’S WHAT THEY’RE NOT TELLING YOU.

These new guidelines are a whole lot more serious than this blog business.

They also cover how you can use testimonials …and this is likely to PERMANENTLY change the way we do business.

Here’s the interpretation straight from my FTC lawyer, Gary:

“…The most significant change to the revised guides is the deletion of the “safe harbor” that has long allowed advertisers to use testimonials who reported specific successful experiences with an advertised product or service as long as the advertiser included a disclaimer such as “Results not typical.” Under the revised Guides, 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.”

Umm …right. Here’s the “Kern Translation”:

Let’s say you sell an exercise DVD.

And let’s say you’ve got a customer …we’ll call her “Patsy” …let’s say Patsy followed your DVD to the letter, worked out like crazy, watched what she ate, and lost 950 pounds.

Now, let’s say Patsy wrote you a testimonial and said “I lost 950 pounds thanks to this DVD!”.

Nothing weird there, right?

Up until these guidelines came out, you could be really safe by simply putting the standard “results not typical” disclaimer on your site. You’ve seen it 100 times, right?

It goes something like this: “Results not typical. Your results may vary.”

No big deal …up until now.

Here’s the key phrase form the “official” paragraph above:

    required to clearly disclose the results that consumers can generally expect.


What this means is that if you have a testimonial where someone gets an amazing result using your product, you’ve got to follow it up by saying something like this:

Results not typical. The average user uses this DVD as a coaster for their Big Gulp and never loses any weight at all.

And frankly, even doing that might be dangerous if you say “the average user uses this DVD as a coaster” because the FTC could theoretically argue that …well, you’re implying that therefore all anyone has to do is NOT use the DVD as a coaster and they’ll lose 950 pounds.

See? Easy to screw that one up.

Here’s more from my man Gary: “The FTC also said that it believes that it is “likely” that testimonials that present the specific experiences of a product user (e.g., the number of pounds or inches lost) will be viewed as claiming that those experiences are typical of what consumers will generally experience.”

Mmm hmm. Trouble with a capitol “T” right there, buddy.

Here’s the sentence that get’s you: viewed as claiming that those experiences are typical of what consumers will generally experience

In my opinion, this means that if you say Pasty lost 950 pounds, the FTC will view this as you saying the TYPICAL USER will lose 950 pounds.

And if you don’t have documented proof out the wazoo showing that the typical user loses 950 pounds, you’re hosed.

Here’s what this means to you

OK. Basically, if you use a testimonial that shows someone really hitting it out of the park, you can’t say “results not typical”.

You gotta say something like “Results not typical. The average user experiences XYZ.”

And if you don’t know what the average user’s results are, you’d either better find out …or simply not use these types of testimonials at all.

But this doesn’t mean that ALL testimonials are this serious. From what I understand, you don’t have to worry about any disclaimers if you’re using testimonials where your customers simply say they like your product, like you, and are happy with their purchase.

…It’s only when you’re conveying a specific result.

Here’s my advice

COMPLY, BY GOD!!

Look. Many marketers are going to scheme for days on how to “get around” this new ruling.

Don’t waste your time. You don’t “get around” the FTC. If you’re worried that a certain testimonial will get you in trouble, don’t use it.

In my experience, testimonials are overrated anyway.

My Mass Control sales video didn’t have any (but I did use them in pre-launch. I won’t do that any more.)

And our current “Screw Google” promotion doesn’t have any either.

If you deliver enough value BEFORE asking for the sale, you should be able to sell plenty of stuff forever.

We’re SUPER lucky as Internet Marketers because when you build a list, you can constantly be providing great value for your subscribers for free …and when it’s time for you to sell something, they don’t need too much convincing.

Anyway – that’s my take on this whole FTC thing.

Hopefully, it clears things up for you and will help you keep your nose clean!

Frank

P.S. I almost forgot to make this point. Any time you have a major change in marketing like this, you’ll see a big drop off in competition.

Lots of people will either screw themselves by not complying with the new regulations, or they’ll try to comply but fail to sell anything because they’re not delivering enough up-front value. Or they’ll just say, “aww …to hell with it” and quit.

All three of these scenarios do nothing but clear the way for you to get more customers by eliminating your competition.

Selling stuff is easy. All you gotta do is give away stuff that makes people happy …and then sell stuff that makes ‘em even happier.

No over-the-top testimonials needed :-)

Now get out there and make some money!

*** If you enjoyed reading this blog, your results are not typical. The average reader eventually says to himself, “Shit. I shoulda just watched Family Guy or something.” Absolutely nothing in this post should beconsidered legal or professional advice. Seek the care and advice of a normal and sane person.

—————————————————————————————

I hope this has been of help do follow the new rules for your financial success.

The FTC Is Going To Regulate Blogging

The Federal Trade Commission ( FTC ) Is Getting involved in internet
blogging. The commishion is expected to approve the blogging guide lines
late this summer of 2009. Included in these guide lines with possible
modification will be the abbility to investigate bloggers as well as the
companies that pay them or offer some other perk for indorsments. It is
the FTC’s belief that bloggers who are compansated for blogging
indorsments are missleading consumers. They point out that people go
online to get reviews of products and services befor purchasing them beleiving these reports.

It  is the belief of this committee that these reports are tainted. The Federal Trade Commission pointed out that in other medias Journalist who work for broadcasters, newspapers and others are usually not allowed to be compensated by the companies they are writing about or their marketers. They say the consumers frequently do not relise that bloggers are paid by linking to products, or receiving perks including gift cards, trips, or free laptops or even direct payment for articles that endorse the merchant, so they have decided to set guidelines.

They state that bloggers frequently do not disclose this to the buyer and that this practice is misleading. So they want the ability to go after the bloggers who endorse products for compensation as well as the companies that support them. This will be a first for the regulation and the patrolling  of what bloggers say and do on the internet,and in Internet Marketing.
The way it is now being put together the common practice of even putting
a link to a retailer and receiving a commishion would be enough to trigger
a FTC oversight investigation.
These statement where made by Richard Cleland Assistant Director or the
FTC’s division of advertising practices.

“IF you walk int a department store,you know the (sales) clerk is a clerk”,” Online, if you think that somebody is providing you with independent advice and …they have an economic motive for what they’re saying that’s information a consumer should know.”
They believe these guideines will bring about uniformity to the blogging
community. The FTC believes that bloggers are a type of community journalism
without the ethical practices typically found in traditonal media.

This regulation if passed will be make it interesting to say the least.
The freedom we now have as bloggers will  be lost.
How will any type of compansation be made considering bloggers are not
employees.
Will blogging as a sales media even be able to exist?
Yes the truth about a poduct and even its weaknesses should be told, and
if it is bad do not support it.
However should Blogging be regulated to this extent?
They state that bloggers frequently do not disclose this to the buyer and

that this pracice is missleading. So they want the ability to go after the

bloggers and the companies that support them. This will be a first for the

regulation and the patrolling  of what bloggers say and do on the internet.
The way it is now being put together the common practice of even putting

a link to a retailer and receiving a commishion would be enough to trigger

a FTC oversight investigation.
These statement where made by Richard Cleland Assistant Director or the

FTC’s division of advertising practices.”IF you walk int a department store,

you know the (sales) clerk is a clerk”,” Online, if you think that somebody

is providing you with independent advice and …they have an economic

motive for what they’re saying that’s information a consumer should

know.”
They believe these guideines will bring about uniformity to the blogging
community. They believe bloggers are a type of community journalism

without the ethical practices typically found in traditonal media.
This regulation if passed will be make it interesting to say the least.
The freedom we now have as bloggers will  be lost.
How will any type of compansation be made considering bloggers are not

employees.
Will blogging as a sales media even be able to exist?
Yes the truth about a poduct and even its weaknesses should be told, and

if it is bad do’nt support it.
However should Blogging be regulated to this extent?

Summary of the CAN-SPAM Act Provisions

Here is a summary of the CAN-SPAM Act Provisions.

This is NOT an exhaustive explanation of the CAN-SPAM Act laws, and should not be taken as legal advice. Make sure you always consult an attorney about any legal aspects of your business.

Here are the highlights of the CAN-SPAM Act which affect you as an online marketer using e-mail or affiliate marker doing e-mail.

* A visible unsubscribe mechanism must be present in all emails.
* All opt-out links must work.
* Opt-out requests must be honored within 10 days.
* Opt-out lists must be only used for compliance purposes. Opt-out lists cannot be sold, rented or given to other marketers or List Company.
* Advertising email must contain an accurate “From” line. You cannot use a false name or pretend to be a different person or company in the “From” line.
* Subject lines must be relevant to content.
* You must have a legitimate physical address for you, the advertiser, it must be included in the email.
* A warning label must be present if the content is Adult in nature.
* An advertising email can not be sent through an open relay server. (Open relay servers are a favorite tool of Spammers, since they allow Spammers to “hide” and bypass blocks against them.)
* An advertising email can not be sent to a harvested email address. (“Harvesting” email addresses includes trading lists with other Spammers, as well as using “bots,” which are small programs that crawl the Internet and copy email addresses from web pages, email list archives, forums, etc.)
* An advertising email cannot contain a false email header. (The header must contain your email address, your recipient’s email address, and the server routing data.)
* The FTC is responsible for enforcing the CAN-SPAM Act.

Enforcement of The CAN-SPAM Act

Spammers can be reported to the FTC. Spammers can also be reported to the ISPs through which they send their SPAM. However, prosecution of Spammers tends to be difficult and lengthy.

Nevertheless, some Spammers have been prosecuted since 2004, including a few high-profile prosecutions of Spammers who served jail time and paid thousands of dollars in fines, and some even millions.

On May 13, 2008, Sanford Wallace and Walter Rines were found guilty of sending pornography and gambling spam to MySpace users. They were ordered to pay $230 million to MySpace, the largest CAN-SPAM damages award to date.

CAN-SPAM Limitations

Not all marketing email is SPAM. When consumers explicitly agree to receive marketing emails from merchants or affiliate marketers, those marketing emails are not classified as SPAM.

The CAN-SPAM laws are the reason double optin is so important for you as an e-mail marketer.

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