The Raging Bull FTC Complaint is a warning shot to trading services. Understand the implications, or potentially face a similar outcome.
FTC Compliance
Does The FTC Franchise Rule Apply To MLM Offers?
Since the inception of the FTC Franchise Rule (16 C.F.R. § 436.1), the FTC has brought more than two hundred enforcement actions under the rule. The FTC has been particularly successful at stopping fraudulent business sales related to the sale of vending machines and rack displays. However, the FTC Franchise Rule has been unsuccessful at stopping Read More…
Why A Material Connection Puts Your Business On The Hook!
If your business actually compensates endorsers or reviewers with cash, gift certificates, coupons, free products, etc. in exchange for their endorsements or positive reviews, this must be disclosed! The FTC is the watchdog agency over businesses engaged in interstate commerce including online businesses. The revised FTC guidelines state that if a connection exists between Read More…
What Are FTC Disclosure Requirements For “Average Results”?
FTC Disclosure of “Average Results” Perhaps the single biggest headache for many Internet marketers and advertisers has been figuring out how to comply with the FTC disclosure requirements regarding average results in their customer testimonials. Most Internet businesses use some type of customer review or feedback to promote their products, including direct customer testimonials. The Read More…
FTC Guidelines On Endorsements & Testimonials!
Any business or individual engaged in advertising must have a basic understanding of the FTC guidelines surrounding customer testimonials and product endorsements. New businesses tend to throw up any endorsement they can get without understanding the legal consequences of doing so blindly. The bottom line is that you or your business can be liable under Read More…
Why “Data Pass” Sales Land Your Business In Hot Water!
Selling someone a front-end product as the initial merchant and then channeling their billing information to another merchant to be used in conjunction with an up-sale or cross-sale of some other product or service (“back-end sales”) is illegal. Under the Restore Online Shopper’s Confidence Act (ROSCA), any initial merchant that directly obtains customer billing information cannot Read More…
Negative Option Practices That Will Sink Your Business!
If you missed my last post, I continued discussing online sales practices liability, focusing on refund and shipping liability. When it comes to your online billing practices, you need also need to avoid deceptive practices. Liability can be triggered for deception under both FTC and state consumer protection statutes. Some states have specific statues dealing Read More…
14 Critical Rules To Using Website Disclosures Effectively!
As you learned in the previous post, the FTC wants website disclosures to be clear and conspicuous. The FTC also wants disclosures to be read at the same time as the claims they qualify. There are other guidelines that website operators must follow when using disclosures to qualify some claim made on the website. Any disclosures that Read More…
Avoid Misleading Claims With Clear & Conspicuous Disclosures!
As discussed in my last post, you may have to qualify some claim you make with a disclosure in order for it not to be a misleading claim. How to use disclosures to qualify information and avoid misleading your consumers is just as important as any other aspect of FTC law. In fact, this is Read More…
How To Make Advertising Claims That Comply With FTC Laws!
Any business (and affiliates and marketers) that engages in interstate commerce will be subject to federal laws. Interstate marketing and advertising practices are regulated by the Federal Trade Commission (“FTC”) under the FTC Act. Services and goods offered through the Internet are considered to be a “use in commerce” since the services are available to Read More…