CAT | Other
Hey guys,
Just quick post here, as you can tell, I’ve got a new layout going so let me know what you think!
The old layout I never really was 100% into from the beginning but I was so eager to get things up and rolling that I chose it. This once is a lot cleaner and pleasing to the eye.
I’ll be updating some of the functions and customizing it more in the next couple days but I just wanted to get opinions now.
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The FTC Act 16 C.F.R Part 255- Why I think it will help!
0 Comments | Posted by cashschool in Other
On December 1st, 2009 the new FTC Act – 16 C.F.R Part 255: Guides Concerning the use of endorsements and testimonials in advertisement, will go into effect. An act like this hasn’t come around since the 1980’s and many felt a revised act would benefit everyone. If you’d like to read it in it’s entirety, click here.
According to the act, if there is an exchange of any type of currency or commodity for an endorsement, that exchange has to be disclosed. Perfect example would be when I talk about products on my site, starting December 1st, I will have to disclose the fact that I get paid a commission for any sale that is generated through my affiliate link.
Why does this have to be disclosed?
Well it should be pretty obvious. If you are giving a review on a product, the fact that you are paid a commission from your affiliate link can hinder you from actually putting an honest review. You’ll be more inclined to put a favorable review because you’ll want your viewers to purchase the product so you can make money from it.
FTC Act
You’ll also be responsible for any testimony you make, so you won’t be able to make these outrageous “I make $1,000,000 a day sitting from home” claims if you can’t provide proof of it. So if you need to go back and revise whatever medium you use to convey your affiliate products or endorsements, you probably should before the act takes effect.
Why will it help?
I know many people are completely against this act by the FTC but I feel this will greatly help the economy. If you had previously purchased a product because your favorite celebrity said it was a great product and never knew he/she made money from every sale, would you change your purchase decision if you knew that celebrity was being paid for their endorsement?
Or how about if you knew that a company could no longer make exaggerated claims about the results of usage of the product? Would your purchase decision be effected if the company was only allowed to put the expected results of usage?
How much money will the average American save now that they are blessed with one of the most powerful things in the world, information. It is this information that allows them to make proper and informed buying decisions instead of acting on impulse or because a celebrity is associated with the product. I remember reading in one of my marketing textbooks that around 90% of NASCAR fans purchase products because their favorite driver is sponsored by them.
We will now have more money saved, which will allow us to pay bills, invest, and/or make purchases of more useful or needed things. All strengthening our economy!
Some say this FTC act will kill business, I think it will force advertisers to be more honest and create a greater bond of trust with its audience.
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