--- title: "The FTC disclosure guidelines: An in-depth exploration of what affiliates and merchants need to know" url: https://adtech.lol/articles/5be21833-38a5-4423-b193-00ffe356d033 source_url: https://martech.org/ftc-disclosure-guidelines-affiliates-merchants-need-know/ source_site: martech author: "Rae Hoffman" published: 2016-08-09T00:00:00+00:00 tags: ["FTC Guidelines", "Affiliate Marketing", "Disclosure Compliance", "Digital Marketing", "Legal Issues"] publisher: AdTech Radar --- # The FTC disclosure guidelines: An in-depth exploration of what affiliates and merchants need to know > Confused about how the FTC's disclosure guidelines affect affiliate marketers and merchants? Columnist Rae Hoffman gives you a rundown of what the rules mean for you. # The FTC disclosure guidelines: An in-depth exploration of what affiliates and merchants need to know ## Confused about how the FTC's disclosure guidelines affect affiliate marketers and merchants? Columnist Rae Hoffman gives you a rundown of what the rules mean for you. By [Rae Hoffman](https://martech.org/author/rae-hoffman/) Published on 2016-08-09 --- The Federal Trade Commission disclosure laws are increasingly becoming a point of frustration and confusion for affiliates, bloggers and merchants across the United States. Back in 2009, the FTC started releasing guidelines governing the use of endorsements and testimonials online. The goal was to force disclosure of material connections between advertisers and endorsers, allowing consumers to know when a blogger, affiliate or celebrity stood to gain something from recommending a product to their audience. As new media for disseminating content developed, the guidelines were updated and expanded multiple times — most notably with the release of its “Dot Com Disclosures” guidelines in 2013 and a comprehensive update of its “What People Are Asking” page in 2015. While the guidelines are expanding regarding endorsements, reviews, sponsored posts, and influencer campaigns — the FTC documents only contain a few paragraphs covering affiliate marketing specifically. The lack of direct examples for affiliate marketing has left many affiliates and merchants to navigate what constitutes FTC disclosure compliance by pulling together bits and pieces of advice aimed at other types of online business models. While the FTC disclosure laws are sparse for affiliates, the spirit of the guidelines is clear: If you stand to make money or receive a benefit in any way by recommending or endorsing a product or service, you’re required to disclose that fact. ## Help with understanding how the FTC disclosure laws affect affiliates While I understand a lot of the FTC disclosure guidelines and feel comfortable making calls in many situations, I wanted more knowledgeable clarification on specific scenarios. Consulting a lawyer to gain a clearer understanding would require finding someone with an in-depth understanding of affiliate marketing. Enter [Tricia Meyer](https://www.linkedin.com/in/triciameyer). Meyer is an award-winning career affiliate and an active lawyer in Indiana. She has been helping fellow affiliates make sense of the FTC disclosure laws surrounding affiliate marketing. **Disclaimer:** The below is not intended to be legal advice, and you should not take it as such. Meyer noted: “The legalities of giving legal advice are complex. I’m an affiliate marketer who happens to be a lawyer, which helps me better explain what the FTC is saying and doing.” The goal of this article is to help affiliates and merchants better understand how FTC disclosure laws apply to affiliate marketing. ## What we know for sure The FTC says that “the guiding principle is that it has to be clear and conspicuous.” 1. **General Disclosure Links are Not Enough**: A simple link in the header, sidebar, or footer to a disclosure page is not enough to satisfy FTC disclosure requirements. 2. **Disclosure Must Appear Before Links**: The disclosure must always appear before the first instance of affiliate link, above the fold, without needing to scroll. 3. **Disclosure Must Be Noticeable**: The disclosure cannot be styled to be less noticeable than your regular content. 4. **Understandable Language**: The FTC requires that disclosure messages use clear language and syntax. 5. **No (affiliate) Notations**: Adding notations like (affiliate) or #affiliate do not meet the requirements. 6. **Clear Relationship Without a Click**: Simply linking to your disclosure policy is insufficient. Be clear about what is being disclosed. 7. **Medium Does Not Change Requirement**: Disclosures apply to websites, social media updates, and more. 8. **Character Limits Do Not Change Obligation**: Disclosure obligations remain even within character limits of social media. ## Compensation 1. **Compensation Is Not Limited to Cash**: Anything received in exchange for endorsement must be disclosed. 2. **Negative Reviews Still Require Disclosure**: If you link to something with an affiliate link, disclosure is needed, regardless of the review's tone. 3. **Promotion of Free Products Requires Disclosure**: If there's potential to earn a commission, it must be disclosed. 4. **Mention Equals Endorsement**: Merely mentioning a product can be considered an endorsement. 5. **Standard Ads Exempt**: Obvious advertisements do not need disclosure. ## Applying the KISS Method to Affiliate Disclosure KISS stands for Keep It Simple, Stupid. Ensure a visible and clear disclosure listed above content on all pages of your site telling consumers you might receive a commission if they click on any links. ## FTC’s Active Monitoring The FTC has been increasingly monitoring disclosure violations, targeting merchants more often than individual affiliates, but putting affiliates on notice that they should adhere to the guidelines as well. ## What This Means for Merchants and Affiliate Managers Merchants must ensure their affiliates comply with disclosure laws, and it is advisable to include FTC compliance in affiliate terms of service. Monitor compliance actively to avoid liability. ## Staying Up to Date FTC guidelines are constantly evolving. Affiliate marketers must continuously monitor updates and adhere to changing regulations. Source: [https://martech.org/ftc-disclosure-guidelines-affiliates-merchants-need-know/](https://martech.org/ftc-disclosure-guidelines-affiliates-merchants-need-know/)