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3 Business Models For Creating Wealth On The Internet
Copyright 2005 Sean Gum The Internet has the potential to make you rich! I am sure you have heard it over and over again. Everybody knows you CAN get rich using the Internet, but HOW? Over the last 8 years, I have researched hundreds of Internet...
Free Internet Marketing Methods that will Save your Internet Business
Best things in life are free, as many would say. This especially holds true with efforts in advertising one's products or services. With free Internet marketing services, one can save a lot. Instead of shelling out for the marketing aspect of...
Network Marketing Internet Business Basics
A network marketing Internet business is what millions of ordinary people are making extraordinary money from. You can too, but only if you put your mind to it. Come to think of it, a network marketing Internet business is no different from any...
Practical Information Products for the Internet
I have been in the training business for over twelve years. As I began writing how-to manuals, I naturally began offering seminars on how to write how-to manuals. And I still do. But I've found that by putting what I've learned about this subject...
Successful Internet Business: Panning For Gold Or Selling Shovels?
Successful Internet Business: Panning For Gold Or Selling Shovels? By Irina ========================================================== The author grants permission to publish this article, in its entirety, electronically or in print, as long as...
 
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.

 

Internet Marketing Center®
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Marketing and internet marketing terms, acronyms, course syllabi, and recommended links.
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Internet Marketing Dictionary
The Internet marketing dictionary at Marketing Terms.com.
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International Internet Marketing Association (IIMA)
Non-profit professional association serving Internet marketing professionals and business strategists.
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Internet Marketing - Craig Upton
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Free Internet marketing help and web site promotion tips for small and home based businesses.
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