How Do the New FTC Regulations Effect Marketing?
Recently the FTC updated their regulations in regard to business practices both online and off. And as usual, we’ve seen the standard run of panicked alerts and warnings surrounding these changes from marketers trying to capitalize on the uncertainty of the whole matter. But when it comes right down to what the FTC is trying to accomplish, it’s not all that scary after all.
The main function of the new regulations is to increase honesty in marketing. They’ll be looking for:
1. Instances of over inflated or false claims made to the public that could cause them financial and/or physical harm.
2. Dramatic and outlandish testimonials designed to over embellish the value of a product, or the effects a product will have on those buying it.
Now you have to realize, the FTC isn’t all that big an agency, so they’ll have to focus on certain types of marketing, like for example the health market where false information and deceit can actually kill someone. And naturally they’ll also be monitoring pyramid schemes and other lop-sided scenarios designed to bilk people of their hard earned money.
What they want to accomplish is to instill honesty in marketing, which is a good thing. Their goal is to protect consumers from harm and marketers from unnecessary lawsuits by attempting to keep everything above board as much as possible. But if the effectiveness of the Can Spam Act is any indication of the FTCs success rate, then they certainly have their work cut out for them.
Yet if you read what they want these new regulations to do, you might come to the conclusion that it may just be in your best interest to comply. Not so much for fear of penalty or prosecution, but because they actually do make a lot of sense.
Think of it this way . . .
Unless you’re taking the “bank robber” approach to marketing, where you’re merely in it to grab a big chunk of cash with one sale and then make your get-a-way, then you’re like most of us who want to build strong businesses that will last for years to come. This takes a certain level of honesty, transparency, and an upfront approach when dealing with customers. If you deceive people, you might get them the first time, but how many will come back when you have your next offer?
Believe me on this! Throughout the years I’ve been marketing online, I’ve followed many people who I thought could teach me something. Most of them have never let me down, but a few have. If I get the slightest twinge of deceit, or I end up with a bad or rehashed product through their recommendation, no matter how effectively they’ve made themselves out to be a “guru,” I never buy another product from them, ever.
No doubt I’m not alone in this.
So here’s what the FTC recommends we do to make our marketing honest and protect ourselves . . .
A. If you’re an affiliate marketer, state your potential for commissions upfront:
What this means for you, the affiliate marketer is, you should know if a product works well and has the potential to benefit your customers before promoting it. Unless you can offer an honest assessment of the quality of an item, no “flowery or hypnotic” copy will outshine the fact that you’re getting a commission for what you’re saying.
While this certainly puts a damper on promoting everything coming down the pike, it’ll also help preserve your reputation in the long run, and give you the potential of selling more of the products you can promote honestly.
B. If you’re a product producer, rewrite your guideline for affiliates:
There’s no way possible for anyone to keep track of everything an affiliate might say about your product, but if you state plainly in your guidelines, or on your affiliate welcome letter that you won’t tolerate deceit or any overstatements about what your product will do, then you’ll be covered.
C. If you solicit testimonials for your products:
Discourage claims of outrageous earnings, or words like “godsend,” or statements like “anyone can do this.” If you get testimonials like these, write to them and ask for a rewrite or ask them if its alright for you to temper it down a bit. If you already have testimonials that sound a bit over the top, take them down or ask that they be written.
Also, keep in mind that people who may have written a testimonial in the past may not feel the same way now. So if you have testimonials on your site that are old, ask the person for a refresh or ask them if they still feel that way, or simply take down the older testimonials and solicit more current ones.
D. If you market in any way:
Be honest and avoid hype, especially if your niche is in the health industry. If you can’t promote a product honestly, or if you wouldn’t buy it yourself, don’t promote it.
So how do the new FTC regulations effect marketing? They make it honest and above board! They protect both consumers and marketers alike. So if you’re having trouble adjusting all your sites to comply, then you really need to take a good hard look at how you’ve been marketing to people. Your reputation is at stake!
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