subject: FTC Targets Internet Marketing [print this page] FTC Targets Internet Marketing FTC Targets Internet Marketing
The Federal Trade Commission is focusing on Internet Marketing in its efforts to protect consumers from fraud and misrepresentations of products offered for sale. Effective December 2009, new rules have been established for the use of "Testimonials".
If you have responded to ads for products on the internet, you have no doubt found many containing testimonials. If it was a diet product, there were plenty of testimonials from users who tell of their success with the diet program. The same is true for just about any product targeted towards a large group of potential buyers. Somewhere on their website was a Disclaimer stating that the results from those testimonials were not typical and the user might experience different results. In the past, this common disclaimer was sufficient. But as of December 2009, such broad disclaimers are not enough to meet the new regulatory standards for testimonials.
The new rules require you to state what are the "typical results" from using the product. In other words, you must tell your buyer what the average or most common results are from using the product. You can not just state the success stories from a-typical users. The next logical question is how can you state typical results if you have no idea what they are. Seldom is a buyer going to write to you stating he lost only 2 lbs. with the diet or his waist size was unchanged. My point here is how will you determine "typical" results? And how will you state these results in your ads without diminishing the overall marketability of your product?
The fallout from just this part of the new rules has prompted several well-known Internet Marketers to withdraw their products for sale. They simply have no way to determine the "typical" results from using their products. Of course, elimination of testimonials is logically the next step for many marketers. Whether this will diminish their overall success in selling their products remains to be seen. But as far as the FTC is concerned, the new rules create a new level of protection for the consumer.
A valuable resource is the FTC website at http://www.ftc.gov, where you can attempt to digest the government speak on what you need to do to conform your website to the new FTC rules. Check the resource box below for more information on this important issue affecting all website marketers.
Now Pay Close Attention --
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