The Dos and Don’ts of Online Affiliate Marketing featured image

The Dos and Don’ts of Online Affiliate Marketing

by John DiGiacomo

Partner

Internet Law

Online affiliate marketing is big business now. Affiliate marketing, of course, has been around for a long time. Basically, a business or a person agrees to promote and recommend a product, a brand of products, or even a whole business in exchange for various things of value. Generally, the affiliate does not actually sell the product or have it available for sale. Rather, a link is provided and, often, a “promo code” that provides a discount for the affiliate’s followers/supporters. More vintage names for affiliates are things like “dealerships” and/or “service and repair providers” (although those types of businesses tended to actually sell the product or line of products).

In any event, it may not be commonly known, but there are some rules and regulations that online affiliates must follow. These mostly involve legal prohibitions against false advertising and unfair business practices. If you have questions or need more details, contact the Internet Attorneys here at Revisions Legal. We can help you understand your obligations if you are an affiliate, and what you need to know about affiliates if you plan on hiring them. In the meantime, here are some “dos” and “don’ts” for affiliate marketing.

DO fully disclose

It is important that an affiliate fully disclose the relationship with the business, company, or brand. This includes all of the possible connections, including any financial, business, and/or family relationships. To pretend that the affiliate is a neutral third party providing a positive review of a product, business, or brand is false advertising and a deceptive business practice. And, frankly, it is not necessary. Some affiliates think that their followers will not buy the product if they know the affiliate is being paid. But, often, the opposite is true. Followers will consider buying the product BECAUSE it is a method of helping an online person or business that they like and support.

DON’T actively conceal

If the above is true, then the opposite is also true. So, DO NOT actively conceal any material connection between an affiliate and the product, business, or brand that the affiliate is promoting. Even “small” things like a free sample product or early access to a game or video need to be disclosed.

DO ensure that the disclosure is prominent

When making disclosures, DO ensure that the disclosure is prominent and is located in the video or promotional material near the endorsement. That is, if the endorsement is near the four-minute mark of a video, then the disclosure should also be near the four-minute mark. If the endorsement is in a photo, then the disclosure should also be in or under the photo. Being prominent also means being visible and of an appropriate size. A microscopic endorsement will not be adequate.

DON’T ignore enforcement correspondence from regulators

If you receive correspondence or contact from regulators, do NOT ignore those contacts. Usually, regulatory enforcement begins with “warnings” and suggested changes to what is being presented by the affiliate. If you receive such correspondence, consult some experienced agency enforcement defense attorneys. Correspondence like this should be taken seriously.

Contact the Internet Law and Social Media Attorneys at Revision Legal

For more information, contact the experienced Internet Law and Social Media Lawyers at Revision Legal. You can contact us through the form on this page or call (855) 473-8474.

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