Alert: FTC Advertising Guidelines Updates

Transcription

1 2013 Alert: FTC Advertising Guidelines Updates Compliance Alert Created by the PMA Compliance Council 79 Daily Dr. #106, Camarillo, CA t: Share Ideas Explore Opportunities Shape the Future

2 2 ALERT: FTC ADVERTISING GUIDELINES UPDATES Alert: FTC Advertising Guidelines Updates Purpose The purpose of this alert is to remind PMA members of the importance of compliance with Federal Trade Commission advertising regulations and guidelines. Additionally, the PMA Compliance Council members include information on recent updates and links to FTC documents relevant to performance marketing practices. This alert does not constitute legal advice; it is strongly recommended that companies and relevant parties consult legal professionals if compliance concerns arise. Audience Primary Advertisers Agencies Publishers Networks Solution Providers Consultants Legal

3 3 ALERT: FTC ADVERTISING GUIDELINES UPDATES FTC Advertising Guidelines Updates The PMA Compliance Council strongly encourages compliance with advertising practice guidance and regulations put forth by the Federal Trade Association in the US. The FTC s priority is to protect consumers from false advertising claims, and it has the authority to bring legal action against parties that violate their regulations. While initially focused on taking action against advertisers, in recent years the FTC has widened its net to implicate affiliate marketers and advertising networks, which are either implicit in perpetuating false claims, or allow such practices to continue unchecked. In 2012 meetings with the, FTC attorneys informed us that they will continue to prosecute any and all parties who benefit financially from advertising fraud. As noted in the FTC s Dot Com Disclosures, the Commission s role in protecting consumers from unfair or deceptive acts or practices encompasses advertising, marketing, and sales online, as well as the same activities in print, television, telephone, and radio. Below are recommended guides with particular pertinence to performance marketing. Additionally, a list of other advertising related guides is provided. Dot Com Disclosures Updated March, This common-sense guide details acceptable methods and practices of advertising disclosures, and includes several examples, making it straightforward to comply with these practices. As the guide accurately states, Negative consumer experiences can result in lost consumer goodwill and erode consumer confidence. Clear, conspicuous, and meaningful disclosures benefit advertisers and consumers. In other words, compliance is good for business!

4 4 ALERT: FTC ADVERTISING GUIDELINES UPDATES Advertising Practices Frequently Asked Questions for Small Business This overview outlines the FTC s advertising policies, focusing on its practices in dealing with claims and taking action. It also includes links to policies and practices regarding specific or vertical market segments. Additional Advertising FTC Guides The FTC has an extensive library addressing several verticals and aspects. You are advised to consult these guides if you are engaged in any of these activities. Advertising Guidance Advertising Dot Com Disclosures: Information About Online Advertising Advertising and Marketing on the Internet: The Rules of the Road Frequently Asked Advertising Questions: A Guide for Small Business

5 5 ALERT: FTC ADVERTISING GUIDELINES UPDATES Joint FTC/FCC guides on Long Distance Advertising Advertising Substantiation FTC Policy Statement Regarding Advertising Substantiation Bait Advertising FTC Guides Against Bait Advertising Comparative Advertising Statement of Policy Regarding Comparative Advertising Deception FTC Policy Statement on Deception Deceptive Pricing FTC Guides Against Deceptive Pricing Dietary Supplements Dietary Supplements: An Advertising Guide for Industry FTC Staff Comment on Draft Report of the Commission on Dietary Supplement Labels

6 6 ALERT: FTC ADVERTISING GUIDELINES UPDATES FTC Staff Comment on FDA Proposed Rule on Statements Made for Dietary Supplements Endorsements and Testimonials FTC Guide Concerning the Use of Endorsements and Testimonials Environment FTC Guides for the Use of Environmental Market Claims (Green Guides) Eye-Care Surgery FDA/FTC Joint Letter on PRK FTC Staff Guides on Refractive Eye Surgery Use of the Word "Free" FTC Guide Concerning the Use of the Word "Free" Food Advertising Enforcement Policy Statement on Food Advertising Jewelry Guides for the Jewelry, Precious Metals, and Pewter Industries

7 7 ALERT: FTC ADVERTISING GUIDELINES UPDATES Unfairness FTC Policy Statement on Unfairness Vocational and Distance Education Schools Guides for Private Vocational and Distance Education Schools Weight-Loss Products Red Flag: Bogus Weight Loss Claims Web Site Red Flag: Bogus Weight Loss Claims Brochure Ongoing Updates The FTC also distributes several newsletters that highlight their development of new guidance and resources alongside their enforcement activities. These newsletters can be a great mechanism for keeping current on FTC activities.

8 8 ALERT: FTC ADVERTISING GUIDELINES UPDATES About the The is a not-for-profit trade association founded in 2008 by the leaders of the performance marketing industry, to connect, inform and advocate on behalf of this rapidly growing field. The (PMA) strives to raise the profile of performance marketing by demonstrating the value of this multi-billion marketing channel, which comprises more than 250,000 businesses and individuals. The PMA is the first formal organization representing the burgeoning performance marketing space and offering members a means to learn, share or communicate on a global scale. The PMA gives performance marketers a unified voice to address issues and challenges facing the industry, such as regulations and legislation proposed on state and federal levels. The association also coordinates advocacy efforts, speaking on behalf of the industry allowing its members to be heard while still focusing on their respective businesses. About the PMA Compliance Council Chaired by David Naffziger, CEO of BrandVerity, the PMA Compliance Council s mission is to stress the positive impact that direct relationships between advertisers and publishers in performance marketing has on the overall compliance of the channel. Council members include: Alexandra Forsch Affiliate Window Brent Elias ShopFreely.com Chris Arreguin Eckim David Sendroff CPA Detective Ernie St. Gelais LinkConnector Ikonya Nginyo DrJays.com Jeff Ransdell Commission Junction Kevin Edwards Affiliate Window Keyur Shah Rakuten LinkShare Lori Welman The Search Monitor Marty Marion Deluxe Matt Maddox MediaWhiz Rey Pasinli Total-Apps Ruvin Spivak SwagBucks Scott Wright Webgains Shahzil (Shaz) Amin Blue Track Media Steve Rafferty -Active Prospect Tony Pantano IM Wave Wade Tonkin Fantatics This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law,, Inc., its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. 2013, Inc. This guide is available exclusively to PMA members in good standing.