I received an e-mail last week from the affiliate manager of Powweb who notified me there had been a change to their terms.
Now all affiliates must make it clear they have a “material connection” with their products. In other words, we must disclose that we are earning a commission. And the disclosure must be on the page where we mention the product.
You may remember me mentioning the FTC disclosure guidelines back in 2009, but they never seemed to be consistently enforced.
However in March of this year the FTC went after a firm and fined them $250,000 for having their affiliates falsely pose as customers or independent reviewers.
You can read more about this here.
Just to be safe, Powweb now requires all their affiliates to disclose the affiliation clearly below any recommendation or endorsement.
For example, I have added the following statement to my pages to comply with their terms…
Disclosure: I am an affiliate of Powweb. This means I receive a commission if you sign up from this website. My credibility is extremely important to me, therefore I only endorse products I have personally purchased and used. This site is independently owned and the opinions expressed here are my own.
Even though I have a link to a blanket disclosure statement in the footer of my site, that may not be enough for long. I can only assume more and more companies will be updating their terms to ensure their affiliates comply with the FTC.
If you need help writing a disclosure, here’s a great resource.
Have you received any emails from affiliate managers of programs you belong to?
Thanks your post concerning disclosure statements and the position of such statements!
I usually place a link on each web page to the disclosure statement. It seems that may not be enough now.
Thanks for the heads up, Lisa. I’ve followed your blog on and off for quite awhile now, and almost all the things that you say are spot on. I need to figure out a strategy to get in compliance, as I do have a number of sites with affiliate links.
As other folks have mentioned, the one that scares me a little is Amazon, as I don’t know how to “cover my bases” with all the ads I have. I’m hoping a blanket statement on each page will do the trick…as usual, thanks so much for you input
Lisa, thank you for this update. I am fairly new to affiliate marketing, although I am actually making a little money at it, but didn’t quite understand the whole affiliate disclosure thing. This makes it clear and I will now work on updating my sites to include a full disclosure. I have been putting a short statement at the bottom of my posts stating something to the effect that links on the page are affiliate links and that I may receive a commission from a sale through them, but your examples will help me make a clearer statement. Thanks.
thanks for the head up. i have yet to get contacted by my AM but im sure its coming.
Only a few people get success in affiliate marketing and for me i also finding it difficult but i am confident of learning and trying it once again.
I got 2 of them in my email recently. It was a little confusing, and I still don’t know where I am supposed to put it or what I am supposed to say exactly. On the individual page that contains the ad or link, or just add it to privacy policy tos type of page.
Hi everyone.
Lisa I do not know if this is the right thread for my question. I am new in this online biz. I do not have any affiliates yet.
What must I look for in an affiliate. Please give me tips (and warnings).
Now I am wondering how to inform the visitor without implying that I make a ton of money off their sign-up. Imagine having to tell people you make money from adsense and avoid implying that they should click the ads.
I am trying to learn all about this affiliate and stuff, hope you share tutorials on this topic? Thanks!
This is truly essential, affiliate programs should be protected. Thank you for sharing this! Need to recheck my inbox. 🙂
thank you lisa, i am new to the blogging world and really enjoy the information here on your site and blog.
Hi , thank you for the heads up.
Hey Lisa i absolutely love reading your blog and the deisgn is so user friendly. When you get the time i’d appreciate if you take a look at my blog and let me know what you think 🙂 Discover Card Logo
I have personally always believed in this, but certain affiliates don’t want you to have this information near the review, in fact they REQUIRE you not to. I guess now they will change their minds, and at the same time I will feel better about doing paid reviews. Great post!
I’m still a customer well until the payouts come in, but like you say it’s the newbies that will lose out. Nobody will sign-up through them as it is and they have not made a nickle promoting this product, to me they are just a customer hoping to make a some money.
Even if you put a disclosure in almost impossible to read tiny type, it’s always best to obey the letter of the law! Don’t take chances!
I’ve heard that some ISPs are beginning to block blogs from Malaysia that carry ads for US companies with no disclosures. i wonder how legal that is?
spell check next time Tam…LOL…oh dear! 🙂
I am so glad I was introduced to your YT channel and now have since been reading your blog and website! I am very new to the blogger world but really enjoy it. I just happy I have all your information to use as a reference to stay abreasted on what is going on:)
Wow, this is kind of crazy! I have not gotten any email like this but I do have a basic disclosure/notice on my site telling people I do receive commissions from some companies.
I agree that if you have to put the notice right on the page where you are recommending a product that will decrease sales but it is better than being fined. Sucks though!!
I also received such a notice from BlueHost.
It will be tricky to incorporate this on review blogs without completely scaring the reader away.
It reminds me of the verbiage at the end of all of the pharmaceutical commercials…”use of this product could result in side effects. If you experience blah blah blah”.
After awhile it will blend into the background, I guess.
Hello Lisa,
I heard about you from Ginette Degner. I’ve already retweeted her link to your post. Great stuff!
Thank you for helping to spread light onto this affiliate disclosure situation. I sent a newsletter on this exact topic a few days ago.
I’ve just added a new legal page to my site at DynamicMedia.com. I used the Legal Forms Generator to do it and got an extensive compensation disclosure because of it.
Now that will satisfy the FTC and most affiliate programs, but you’re absolutely right, a deal is a deal. Meaning that if a certain affiliate program requires you to put a disclosure, or a link to one, from the page where you mention the product, then you have to do it.
What’s not clear in that situation is all the old legacy pages. Just because they change their terms of service, it wasn’t “part of the deal” prior to the date they changed their terms.
I’m sure some of them will have language in their earlier boiler plate that allow them to enforce such changes after the fact. But there’s no way I could go back to thousands of published pages, some dating from 1998 and add a disclosure to every page.
So I guess it means putting it in the footer. Maybe something like: “Links on this page may be affiliate links whereby the publisher receives compensation if purchases are made by clicking on said links. But sheesh, that’s a lot of noise on every page. And it only covers sales, not signups or CPA offers, etc.
So here’s what I’m going with: “Links on this page are affiliate links.” linking the words “affiliate links” directly to the compensation disclosure section on my terms and conditions page. That aught to do it. 🙂
~ Michael
Great point about the legacy pages. And thank you for posting what text you are using. I think ultimately that’s what I’m going to do — link to the actual page. 🙂 I’ll have to do it in a way that should cover all affiliate program policies as more of these keep coming down the pike.
Michael,
Thanks for the examples. this legal jargon always gives me ahard time.
Might affect revenue but better safe than sorry?
This is why I love following you. You are always above board. There are so many hustlers out here. But you make me feel good about selling.
Awww thanks Fred! Thanks for your long-time support. 🙂
I’ve never received anything like this but I think it’s fair. I don’t recommend many things in this fashion but whenever I do, I mention that it’s an affiliate program I’m a part of and that I’ll make money from it. But that’s only if I’m recommending something; if I happen to throw in a link I don’t mention it at all, but I have it highlighted in a way where regular visitors know what it is.
I’ve recive same mail about 1 year ago, but i’m not affilate with them.
I got one too but I think if you only have banner type ads you may not need the disclosure but I could be wrong about that.
Hey Lisa, just wanted to let you know I received that FTC update notice from companies like BlueHost and HostMonster (hosting companies) just yesterday. I agree on the fact that it’s only a matter of time for the rest to jump on the FTC agreement wagon but I guess we all already saw this coming anyway.
I got one yesterday from BlueHost that said in part “you must clearly disclose the fact that you receive such compensation in a clear and prominent place–that is close to your endorsement.”
That definitely makes it tougher to comply but I guess if the goal is to be transparent and to help cull the shady marketers out, then it’s a good thing. 🙂
Hi Lisa,
Yes I got an email from BlueHost saying the same, I think however, that we can turn it into a good thing and actually increase affiliate commissions, with something like:
Like the content of this website? Use the product link below to support further development of this site…. then add the needed statement.
Because I think most of our visitors already know we make money and if we tell it like it is they don´t feel like we try to “force/sneak” any profit from them, but also they might even use another of our link to support us, this requires that we provide quality content though.
Well, just a thought. Maybe I am too naive.. 🙂
Ps. I always try to find a affiliate link from someone that I think does a good when I am planning on buying things. The price for me is still the same so…
I absolutely think you can turn this into a positive thing for your site. Yes many will be turned off by the affiliation but if you clearly explain that you only promote things you buy/use and you are also highlight things you DON’T like about the product, then it helps build credibility. Then when you do write a glowing review/testimonial people will respect and believe you.
Lisa,
I would like to write more on this subject later. However, I will say your blog post REALLY caught my attention because just yesterday, when you posted this post, I received a very serious email from Hostmonster telling me that I need to reveal my affiliate relationship with that company, in accordance with the new FTC enforcement. I need to read it all over more carefully, but I believe that no matter how you slice it, The FTC wants us to make that relationship clear under every add on every page! Maybe a disclosure LINK under every affiliate link would be sufficient. More later. Thanks for letting me know it is not only me and not only my product that is being notified.
Take Care,
Jupiter Jim
Thanks for the information. It’s good to be here to ask questions!
Does anyone know if this is relevant for the Amazon affiliate program?
I don’t think Amazon has put anything out…. yet. I believe it’s only a matter of time before more companies to start doing this.
Thanks Lisa for being so proactive.
This news is annoying , i think these things are getting the affiliate market a new approach.which is not good for bloggers like us.
I know it may be frustrating, but it’s only fair to consumers/web surfers. Imagine the people buying products because they assumed it was an independent review. Let’s say the product sucks but the only reason the person reviews it is because of the commission. So now an unsuspecting person has unknowingly bought a crappy product that may have never been promoted if there was no affiliate program associated with it. It may annoy you as a blogger, but imagine if you are on the other end?
Thanks for the info Lisa!
This stuff is really strating to get me down. It’s not so bad in the IM niche but in other niches it could really affect sales.
I often like to add my disclaimer in a sort of jokey way too:
“Please note that some links on this page are affiliate links, it just seems silly not to use them, but if you want to avoid them for any reason it’s cool with us. Just Google the name of the product and you should find it easily.”
Great stuff, as always.
Hi Lisa, I know companies are tying to “protect” buyers online these days but it is really getting way too strict. I have disclosures on all my sites but not on each post. If I have to do it I will but not until I receive the email.
I usually disclose my material connection anyway. I didn’t realize it was that important though.
I wonder to see this powweb email, changing agreement(We’ve made an important addition to the PowWeb Affiliate Agreement). How about other affiliate program, like CB, CJ, P.Com, Amz,eB, etc… If all these big Affiliate companies/programs are getting striker it might be big problem.
Hi Lisa!
It’s definitely good to get this heads up out there – just like buying insurance it’s better to be safe than become the one bad luck example.
I don’t currently have any affiliate links on my site, but I have occasionally mentioned books which I linked to via my Amazon affiliate account. Can’t do that anymore, though, as I live in California and I just got the email the other day that our state is no longer eligible for their affiliate program.
I just received one of these emails from BlueHost. Appropriate disclosure is only fair but it is difficult to work out how best to do it! BlueHost require disclosure on the page of the review/recommendation, and it must be “immediately clear” – I guess this means a small disclosure in a sidebar widget may not be compliant? Will have to think about where and how to place it.
Affiliate programs are getting stricter these days
Great info, Lisa. However, I’m not surprised. As more and more people have turned to the internet as a way to supplement/replace their income, many are missing the mandatory disclosure requirements. The FTC is cracking down because, let’s face it, they’re trying to generate additional revenue as well and if you are not well informed by being in compliance, you’ll pay. In any event, thanks for keeping us all informed. I love your website and the information you provide.
Hey Lisa, do you add that disclosure to every page where you mention that company? Can’t remember where you have it, is it here on the blog or your site?
Do you think, instead of having a disclosure page, we could add a little text widget to the sidebar, saying something along the lines of the text in the post above? Would that be enough? Or you actually had to mention the name of the company you are affiliated with? I don’t think I would want to list each company in the sidebar, lol
Yes, fortunately I only mention in on my static site for the most part. In the future I will probably do something like you mentioned. Just have a link that says “Affiliate Disclosure” and then have that link to a page with more details. And then for those programs that require us to add a disclosure on the page, I will follow their individual guidelines. I honestly think the text widget will satisfy the FTC for the most part. But a lot of companies are getting paranoid after the $250K fine so they are forcing affiliates to be more specific.
Hi Lisa,
I received the same email as well and was wondering if my blanket disclosure page would be adequate. I think I will do as you have, though, and put a statement on every page just to be safe.
Thanks for the heads-up – AND the solution!
Wow, that’s really interesting. I suppose it makes sense in the sue-crazy society that we live in, but realistically, it should only help us because the frauds will disappear and there will be more money for the select few that are legit to share.
Thanks for sharing Lisa! There are so many more affiliate marketers today than there ever were; they become more prominent, thus, drawing a lot of attention. Guess i should just go right ahead and update my affiliate pages at my own pace before those email arrive.
“If we all treat each other like we treat ourselves – what a wonderful place earth would be.”
Wow Lisa! Thanks for addressing this issue. It seems that affiliate marketing is going through some changes. California sites may not be able to use Amazon much longer, I understand. I would be interested to learn what other readers are doing to disclose their affiliate connections and where they are putting this information on their sites.
I would like to know what others are doing too. I have a feeling a lot of people are hesitant because they worry it will hurt their sales. And quite honestly, it may overall. But I’d rather have a decline than to get fined hundreds of thousands of dollars.
Lisa,
I have a Disclosure on the home page of my blog. Do you think this is enough? I did not think I had to put it on each post that mentions a product since it is on the first page.
The FTC is really not clear. I think a blanket disclosure for most people is enough… for now. However if you are contacted by a program you belong to you need to comply with their guidelines. Powweb specifically said that the disclosure must be placed on the page…. even if you have a blanket disclosure statement elsewhere.
Thanks Lisa. Your article on affiliates was enlightening not only to those affiliated to Powweb. Not many webmasters understand the implications of affiliate disclosures. Your article will definitely raise many eye brows.
I do not have any affiliates yet, but I have been greatly enlightened.
Thanks
Thanks for the heads up and for the language for disclosure. Always easier when you have something to go on.
Thanks for the heads up Lisa. I haven’t been contacted yet, but it’s best to be proactive about this and make sure the disclosure is clearly stated.