Disclaimers are both beneficial and required in the United States, as well as elsewhere. They’re a good business practice since they foster trust and, as a result, customer loyalty. Both the FTC and many affiliate networks now require them.
The FTC has some requirements for affiliate program participants. The FTC is responsible for safeguarding American consumers from dangerous products and unscrupulous businesses. One of its tasks is to eliminate fraudulent marketing tactics that entice customers to buy items. Failure to disclose financial relationships is regarded as deceptive marketing behavior, which is covered by the Lanham Act.
By contrast, an affiliate program participant who fails to disclose his or her participation in a program that pays people for recommending items is engaging in deceptive marketing.
Disclosure Affiliate Program Considerations include: Who, When, and Where
Who needs to Disclose?
Everyone who is a part of a program must disclose their connections. It doesn’t matter how much money you make or if you’ve never received a payment. There are no exemptions from disclosure, and the FTC does not grant any special privileges.
Any compensation, including but not limited to: Affiliate marketing fees Free items discounts Store credit Special access Free services Any kind of favor that has a monetary value
You’ll need a disclaimer if you went to a conference, had lunch or received sample-size items in the mail.
When Should Disclosure Occur?
Immediately after posting the material, disclose your connection. It makes no difference if you’re creating a website, a blog post, or an Instagram post. The disclosure should appear with the article. If you work with affiliate programs, it might be useful to make a separate page explaining your intentions and restrictions in all of your connections. It should be available to anyone who wants it. So, this needs to go somewhere easy to find – not just on your website, but also in your YouTube video’s description, Facebook page info and any other places that you talk about affiliate programs!
Here is an example of an Affiliate Disclosure: Some of the links in this article are “affiliate links.” This means if you click on the link and buy the goods, I will get a commission. I only suggest things or services that I use personally and feel will be beneficial to my readers, followers, or site visitors regardless. In accordance with FTC 16 CFR Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising,”
Where should Affiliate Disclosures Occur?
Place it front and center. Make no secret about it. It should never be a “witch hunt”. You have to always make it easy to find.
Customers come across your material from a variety of entry points, so remember to disclose at the top of your blog post, at the bottom of your blog post (but before the affiliate link), on your main page, and next to the affiliate link.
Be sure that all of your social media tweets and posts disclose any of your affiliations right near the affiliate links shared. Be transparent.
Following simple best practices such as these help build and maintain that level of trust your brand stands for...
The 4 Most Important Elements of an Affiliate Disclaimers
The following are the four basic components of an affiliate disclaimer:
Tell those reading your blog that you’re being compensated.
Explain why you’re promoting and selling the items you’re advertising.
Always disclose whether you receive anything for free.
Let everyone know if your content is sponsored by a specific vendor or entity.
Disclose That You Are Being Compensated
Your disclaimer should clarify that you get a commission on purchases (or however it is you are compensated). You don’t need to disclose how much money you make. Simply inform them that you are being compensated.
You should also never make false claims. Never exaggerate earnings, commissions, or successes. Inform your customers that results achieved vary from one affiliate to another which are dependent on other key factors.
Always Present Factual Earnings. If ever asked, you’ll have to be willing and able to present evidence to the Federal Trade Commission to back up any claims made by you (the affiliate).
Why have you decided to promote or sell these particular items?
Businesses choose what items to sell based on their customers’ preferences. Some partnerships, though, may force you to market certain goods. To inform your consumers about your policy on product choice, utilize your disclaimer.
Look back at the disclaimer from Smart Passive Income and you’ll see one of the last sentences states that the only products or services that are promoted are ones that the blogger has investigated and feels truly deliver value to the readers.
A Good Rule of Thumb – Add a paragraph to your disclaimer that explains why you’ve chosen the products and how it will improve trust and transparency.
Why You Should Always Disclose Whether You’ve Been Given Free Products?
Have you ever received a free sample or purchased the product yourself? In your disclaimer, let consumers know whether you were given a freebie or purchased it yourself so they know you didn’t go out and discover the product on your own. This information will be important to them.