FTC Compliance
The USA Federal Trade Commission (FTC) is responsible for protecting consumers and promoting competition in the United States. Affiliate marketers, like all businesses, are required to follow guidelines set by the FTC..
- All GenZiers Business Partners must ensure if there's a material connection between an affiliate and the product they're promoting (like commissions or free products for reviews), this connection must be disclosed. This disclosure should be clear, conspicuous, and close to the endorsement or testimonial.
- Be Transparent: Any relationship that could affect the credibility of a review or endorsement should be disclosed. This means if you're being paid, if you received a product for free, or if there's any other incentive, you need to be upfront about it.
- Use Clear Language: Avoid using vague or confusing language. Phrases like "sponsored," "promotion," or "ad" are clearer than ambiguous terms.
- Placements Matter: The disclosure should be placed where it's easy to see. This means it shouldn’t be buried in a sea of links, at the bottom of a post, or only on a separate disclosure page.
- Video and Audio Disclosures: If your endorsement is in a video or audio format, the disclosure should be in the same format. For videos, it's not enough to just include it in the description – it should be in the video itself.
- Native Advertising: If content looks like editorial content but is actually an ad, it must be identified as such.
- Honest Reviews and Testimonials: All statements made in endorsements or testimonials must be truthful and not misleading. This means you can't make false claims or promises about a product, even if you're relaying what the company says.
- Substantiation: If specific results are claimed (like "lose 10 pounds in a week"), there must be proof to back up that claim. If the described result isn’t typical, that too should be disclosed (e.g., "Results not typical").
- Monitoring: Companies that work with affiliates have a responsibility to ensure their affiliates follow these guidelines. Regular monitoring and guidance can prevent issues.
- Penalties for Non-Compliance: Not following FTC guidelines can lead to investigations, legal action, and fines. It's vital to stay informed and regularly review FTC guidelines, as they can evolve.
Remember that these guidelines aren’t just to avoid legal repercussions. They also build trust with your audience. When consumers feel like they can trust the information they’re receiving, they're more likely to engage with it.