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Free Internet Marketing? Part II
In the last article we went over using some free viral marketing sources such as Traffic Swarm and FreeViral to get 1000's of hits a day of targeted traffic. In this article I will discuss some other sources of viral marketing and also...
How To Start An Internet Business – Site Layout
This step of how to start an Internet business involves the layout of your site. When organizing it, two audiences must be considered. Obviously, visitors to the site are the first audience. You must also keep in mind the second audience, search...
Internet Partnerships - Don’t Throw Away Your Business
General partnerships are a poor business entity choice when it comes to pursuing business activities. They fail to provide the asset protection shield that should always be put between your business activities and personal assets. Many small...
The Chicken or the Egg and the Internet Marketer or Site Designer
An age-old question is, "Which came first? The Chicken or the Egg?" In ecommerce, the same question can be applied to site designers and Internet marketers.
Before we settle the answer, we need a few parameters. For purposes of this discussion, a...
Why Post in Forums to Promote an Internet Business?
Some people feel that it's a waste of time to post in various newsgroups and forums to promote an internet business. After all, most forums just do not allow advertising. You can't reach many prospects at a time, and it takes way too much time to...
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Marketing on the Internet: Legal Rules of the Road
The Internet is connecting advertisers and marketers to customers from Boston to Bali. If you're thinking about advertising on the Internet, remember that many of the same rules that apply to other forms of advertising apply to electronic marketing.
The Federal Trade Commission Act allows the FTC to act in the interest of all consumers to prevent deceptive and unfair acts or practices. The FTC has determined that a representation, omission or practice is deceptive if it is likely to:
1. Mislead consumers and
2. Affect consumers' behavior or decisions about the product or service.
In addition, an act or practice is unfair if the injury it causes is:
1. Substantial
2. Not outweighed by other benefits and
3. Not reasonably avoidable.
The FTC prohibits unfair or deceptive advertising in any medium. That is, advertising must tell the truth and not mislead consumers. A claim can be misleading if relevant information is left out or if the claim implies something that's not true. For example, a lease advertisement for an automobile that promotes "$0 Down" may be misleading if significant and undisclosed charges are due at lease signing.
In addition, claims must be substantiated, especially when they concern health, safety, or performance. The type of evidence may depend on the product, the claims, and what experts believe necessary. If your ad specifies a certain
level of support for a claim - "tests show X" - you must have at least that level of support.
Other points to consider:
Disclaimers and disclosures must be clear and conspicuous. That is, consumers must be able to notice, read or hear, and understand the information. Still, a disclaimer or disclosure alone usually is not enough to remedy a false or deceptive claim.
Testimonials and endorsements must reflect the typical experiences of consumers, unless the ad clearly and conspicuously states otherwise. A statement that not all consumers will get the same results is not enough to qualify a claim. Testimonials and endorsements can't be used to make a claim that the advertiser itself cannot substantiate.
If your ad uses phrases like "satisfaction guaranteed" or "money-back guarantee," you must be willing to give full refunds for any reason. You also must tell the consumer the terms of the offer.
Non-Compliance
If you fail to follow these rules, you run the risk of being prosecuted by the FTC. Successful prosecutions typically result in injunctions against your site and damages awarded in the amount of $11,000 PER VIOLATION.
About the Author
Richard Chapo is with SanDiegoBusinessLawFirm.com - Go to our article section to read more business law articles.
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