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Law Requires Disclosure of Affiliate Marketing Links, Word-of-mouth and Paid Reviews

posted on December 13, 2006


Copyblogger has been digging around a new statement made by the Federal Trade Commission and reported by the Washington Post.

The bottom line, the FTC is pushing to make companies disclose any compensation received when promoting a product or company. While this is not a new law, the FTC wants marketers to know how it intends to interpret existing legislation.

…companies engaging in word-of-mouth marketing, in which people are compensated to promote products to their peers, must disclose those relationships…Word-of-mouth marketing can take any form of peer-to-peer communication, such as a post on a Web blog, a MySpace.com page for a movie character, or the comments of a stranger on a bus.

This certainly impacts word-of-mouth marketing companies more than anyone else, but it could also effect affiliate marketers. And what about all of those pay-per-review sites that are popping-up. PayPerPost.com is going to have to change its model to force reviewers to disclose their relationship.

Via ProBlogger.


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  • Mark

    Give me a break – if you are on a bus?

    This isnt going to effect SEO much, but I still think its crazy how much they want to be a “moderator” for the web.

  • steve

    Firstly, this isn’t a “law” — this is an opinion of staff by FTC.

    Amazing how the information on this stuff spits out the other side as …”Law Requires…”

    ugh.

  • http://alldj.org Saul

    Can anyone recommend me affiliate programs where you can use text links?
    I need to know of all the affiliate programs out there where you can use text links and that pay per click.
    thanks in advance….

  • http://www.webmaster-money.org Webmaster Money

    I got scared that it is realted to all affiliate programs. What is anyway the “word-of-mouth marketing”? Never heard about that before.

  • http://www.bollywoodwebarchive.info/ bollywood

    So simple disclaimer like “we are getting paid by advertisement on this site” would do?

  • http://www.wny-lawyers.com Buffalo Lawyers

    Bollywood – Yes, in my humble opinion, that would be the only requirement.

  • http://www.homeworkingadvertising.com/ Trick or Treat

    Hi readers posters knowledge lovers, one n’all … Finding new ways to share link love is an excellent strategy its not so hard to find quality back links it’s that time wasting element you have to go though in the process if you want to really be involved in a like-minded community. We are always on the look out for automotive tools that make our lives easier while working to build back links that also help to build a seeable business opportunity online … my take on this if I find any time savers that are easy to use, I like to share them so here you go; I have a great user friendly tool that puts all this typed text into a readable format its called WhiteSmoke cost me about $90.00 but well worth it, and it doesn’t miss a trick when it comes commenting on blogs writing articles well any thing you do on a computer its always running in the back ground it’s almost like having your very own teacher as we all did at school except this tool you don’t get a slap around the back of the head when you make a spelling mistake lol …
    Regards
    Phillip Skinner

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