Internet Marketers Get Ready for the Storm-new FTC rules.

Let’s start with the standard disclaimers, I’m not an attorney and you need to check with your own individual attorney for legal advice.  For those of you involved in internet marketing whether it’s for sales of products, service, affiliate marketing, MLM, direct sales or lead generation, you need to be aware of the new rules coming out December 1st from the FTC.

Prepare for the Storm

As someone who has invested over $400k in legal fees in my career, I can tell you I’m not too fond of lawyers or the American legal system (nothing personal), because let’s face it litigation is a rich persons sport.

I’m a big fan of preventative measures and compliance because take it from experience things are twenty times as costly to repair once you’ve discovered you already have a legal problem.  The best advice is to seek counsel prior to engaging in any activity so that you can structure yourself accordingly and keep yourself in compliance.

Most of the new rules (again consult with your attorney) relates to endorsements, income claims and disclosures.  I found a great educational resource that’s economical and these people have worked on projects with some notable people to include (my hero) internet rock star Frank Kern.

The link is internet marketing compliance tips and they also have a 2 tiered affiliate marketing program for those of you who are interested in this marketing niche.  I signed up as an affiliate (very simple), like that disclosure?  Obviously people are confused about the rules so the sooner you learn them the better off you’ll be.

Life is busy enough keeping up with all of the task associated with having an online business, so the last thing you need is a compliance headache.  In down economies compliance can become overheated for two good reasons, one there really are some “bad apples” that need to be taken off the streets and two; the government in any fiscal crises tends to over regulate.  In either event, the rules aren’t all bad as it creates more of an equal playing field for people that are new to marketing on the internet especially in the home based business market.

There’s nothing worst in life than getting involved with a complex legal exercise because in the U.S., our legal system has a high burden of cost that comes from the discovery process.  Meaning you could be absolutely innocent and you may have to spend hundreds of thousands of dollars just to go through the process to prove your point.

Again, check with your attorney, but the link I supplied might be a economical way to get a better understanding of the rules especially if you’re new to internet marketing and on a modest budget.  It never hurts to get educated on something before you meet with the attorneys.  This tends to keep your attorney focused and it shows that you are an educated client which in my experience will save you time and money with your agents.

For most of us this is not anything to freak out about.  If you are doing things correctly and following the rules you should be fine.  To be safe you’ll want to check with your attorney and create a compliance plan.  I learned a long time ago as a investment banker that you’re much better off to disclose early and often.  All it takes is running into one crazy person that falsely fabricates things against you (been there done that), and then you’ll be left holding the bag spending big dollars to defend yourself in a frivolous suit.

Often times when the big corporations start to lose market share they press their friends in D.C. to change the rules.  This is done so they can protect their turf, so even though the rules aren’t all bad in some cases they might be a bit overreaching.  The true test will come when we start to see some court cases and appellate decisions which will take time.  The internet is changing the foundation of traditional business where the companies that build the most value and operate efficiently win.  Get with your counsel and check the new rules; just make sure your counsel has experience with internet marketing.  It will save you money if you prepare for the storm.

Stay clean, have fun and make some honest entrepreneurial green!