How Big Brands Handle FTC Demands

COPYRIGHT BRANDVERITY, 2016

How Big Brands Handle FTC Demands

Julia Pavone


Outline

• FTC Definitions & Guidelines• Types of Compliance Risks

– Examples– BrandVerity Study

• Costs of Non-Compliance• Real World Examples• Proactively Taking Control


Learn to think like the FTC• Affiliates/Partners are seen as part of a brand’s

marketing channel• If an affiliate/partner makes claims or discusses

an attribute and receives compensation, need to follow guidelines


FTC Guidelines

An advertisement or promotional message shouldn’t suggest or imply to consumers that it is anything other than an ad

https://girlwithcurves.com/post/132058612904/feather-blazer-high-waist-jeans


Disclosures

Disclosures must be clearly and conspicuously stated for any sponsored content

"Native Advertising: A Guide For Businesses | Federal Trade Commission". Ftc.gov. N.p., 2016. Web. 20 Dec. 2016."The FTC’S Endorsement Guides: What People Are Asking | Federal Trade Commission". Ftc.gov. N.p., 2016. Web. 19 Dec. 2016.".Com Disclosures: How To Make Effective Disclosures In Digital Advertising". Ftc.gov. N.p., 2016. Web. 20 Dec. 2016.


Lord & Taylor


Cole Haan – #wanderingsole


BrandVerity Study

• Failure is the Norm– 80% did not include a

disclosure

• Better Together– 79% of posts created through

advertiser and affiliate collaboration included some form of disclosure

• All Disclosures Not Created Equal

– Only 21% of disclosures were adequate

Download Today:

bit.ly/FTCstudy


Costs of Non-Compliance

• Public Reprimands– For Brands: Loss of customers– For Publishers: Loss of business

• FTC Reprimands– Court Ordered Monitoring– Fines


HOW BIG BRANDS ARE STAYING PROACTIVE


Example: Large Agency – Online Retail

• Actions Taken: Extreme Proactivity– Require all affiliate pages to have a proper disclosure on their

pages stating there are paid links– Not allowing any affiliates into program without disclosure

present• Benefit

– Starting their program out with a requirement, rather than having to go back later and educate/enforce


Example: Credit Card Issuer

• Actions Taken: Unique Disclosure– Each time an affiliate has their card, they have a unique

brand specific advertiser disclosure• Benefit

– Easy to show that they are being proactive– Helpful in monitoring since you can look for specific text


Example: Large Bank

• Actions Taken: Control Traffic Flow– All referral links leaving publisher site only come from 1 page– All links for a specific card in any article on a page must only

link back to one page on the site that will link back to the bank

• Benefit– Able to ensure that every customer sees the disclosure, TOS,

etc. if all traffic goes through one page


WHAT DO YOU DO NOW?


Tips For A Compliant Program

Teach

Create a ProcessEnforce



1. Teach– Yourself– Colleagues– Partners

Teach

Create a ProcessEnforce



2. Create a process– Review each affiliate site– Capture screenshots– Record remediation actions– Compile report

Create a process

EnforceTeach



3. Enforce– When an issue is found, contact the affiliate and take action– Keep a record of the issues to show you have a process for taking

action

Enforce

TeachCreate a process


Summary

• Affiliates/Partners are seen as part of your marketing program

• Any endorsements by affiliates/partners need to have a disclosure if being compensated

• Learn the FTC guidelines for your industry• Teach others what those guidelines are• Develop a compliance process• Enforce the your rules


Q & A

www.BrandVerity.com

How Big Brands Handle FTC Demands

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Transcript of How Big Brands Handle FTC Demands