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How To Start an Internet Business – The First Step
The vast majority of web sites are destined to fail before they are even built. Why? Because people building sites almost always put the cart before the horse. Actually, most don’t even include the horse. Evolution of Your Site New sites follow a...
Internet And Network Marketing Works
Internet and network marketing are inseparably related today. The phenomenal growth of the Internet has been a great boost for those trying to establish a network marketing business of their own. Whether part time or full time, you can combine the...
INTERNET DIRECTORIES CAN HELP CAPTURE BUSINESS FOR PROFESSIONALS
Professionals have been slow to realize the enormous value of the Internet as an advertising medium. Many have adopted e-mail and developed websites, but they don't know what to do with them. Every day, thousands of consumers and businesses search...
Internet Marketing For Frugal Site Owners
Every site promotion expert knows that fresh content is the primary way to increase site traffic. But newbies to Internet business may not realize the power of content. In this article we will outline the reasons why fresh content is so crucial to...
Two Internet Entrepreneurs Launch New Program That Demystifies How to Make Money Online
Making money online isn't a mystery. Two successful Internet Marketers detail the systems and strategies they use to make $20,000 per month selling information products. Los Angeles, CA(PRWEB) October 25, 2005 -- Before spending hours researching...
 
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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