Alert: FTC Advertising Guidelines Updates

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Alert: FTC Advertising Guidelines Updates

Compliance Alert Created by the PMA Compliance Council

Performance Marketing Association

2013

08

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Performance Marketing Association 130715 member version 1.1

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

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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 Performance Marketing Association, 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, 2013

http://ftc.gov/os/2013/03/130312dotcomdisclosures.pdf

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.”

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Advertising Practices Frequently Asked Questions for Small Business

http://business.ftc.gov/documents/bus35-advertising-faqs-guide-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.

http://www.ftc.gov/bcp/guides/guides.shtm

Advertising Guidance

Advertising

• Dot Com Disclosures: Information About Online Advertising

§ http://ftc.gov/os/2013/03/130312dotcomdisclosures.pdf • Advertising and Marketing on the Internet: The Rules of the Road

§ http://business.ftc.gov/documents/bus28-advertising-and-marketing-internet-rules-road • Frequently Asked Advertising Questions: A Guide for Small Business

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§ http://business.ftc.gov/documents/bus35-advertising-faqs-guide-small-business • Joint FTC/FCC guides on Long Distance Advertising

§ http://www.ftc.gov/os/2000/03/jpsada.pdf Advertising Substantiation

• FTC Policy Statement Regarding Advertising Substantiation

§ http://www.ftc.gov/bcp/guides/ad3subst.htm Bait Advertising

• FTC Guides Against Bait Advertising

§ http://www.ftc.gov/bcp/guides/baitads-gd.htm Comparative Advertising

• Statement of Policy Regarding Comparative Advertising

§ http://www.ftc.gov/bcp/policystmt/ad-compare.htm Deception

• FTC Policy Statement on Deception

§ http://www.ftc.gov/bcp/policystmt/ad-decept.htm Deceptive Pricing

• FTC Guides Against Deceptive Pricing

§ http://www.ftc.gov/bcp/guides/decptprc.htm Dietary Supplements

• Dietary Supplements: An Advertising Guide for Industry

§ http://business.ftc.gov/documents/bus09-dietary-supplements-advertising-guide-industry • FTC Staff Comment on Draft Report of the Commission on Dietary Supplement Labels

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• FTC Staff Comment on FDA Proposed Rule on Statements Made for Dietary Supplements

§ http://www.ftc.gov/be/v980023.shtm Endorsements and Testimonials

• FTC Guide Concerning the Use of Endorsements and Testimonials

§ http://www.ftc.gov/opa/2009/10/endortest.shtm Environment

• FTC Guides for the Use of Environmental Market Claims (Green Guides)

§ http://www.ftc.gov/bcp/guides/guides.shtm Eye-Care Surgery

• FDA/FTC Joint Letter on PRK

§ http://www.ftc.gov/bcp/guides/hhsftc.htm • FTC Staff Guides on Refractive Eye Surgery

§ http://www.ftc.gov/bcp/guides/eyecare2.shtm Use of the Word "Free"

• FTC Guide Concerning the Use of the Word "Free"

§ http://www.ftc.gov/bcp/guides/free.htm Food Advertising

• Enforcement Policy Statement on Food Advertising

§ http://www.ftc.gov/bcp/policystmt/ad-food.shtm Jewelry

• Guides for the Jewelry, Precious Metals, and Pewter Industries

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Performance Marketing Association 130715 member version 1.1 Unfairness

• FTC Policy Statement on Unfairness

§ http://www.ftc.gov/bcp/policystmt/ad-unfair.htm Vocational and Distance Education Schools

• Guides for Private Vocational and Distance Education Schools

§ http://www.ftc.gov/bcp/guides/vocation-gd.pdf Weight-Loss Products

• Red Flag: Bogus Weight Loss Claims Web Site

§ http://www.ftc.gov/bcp/edu/microsites/redflag/ • Red Flag: Bogus Weight Loss Claims Brochure

§ http://business.ftc.gov/documents/bus60-red-flag-bogus-weight-loss-claims

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.

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About the Performance Marketing Association

The Performance Marketing Association 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 Performance Marketing Association (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, Performance Marketing Association, 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.