Legal Issues faced by Affiliate Marketers

For many affiliate marketers, the legal risks they face may seem distant or unlikely. Since they are promoting another company’s product, rather than selling, servicing, and delivering it themselves, they assume that other company is the only one with any potential legal liability or duties. Unfortunately, nothing could be further from the truth. Recently, the FTC has taken serious action against affiliate marketers for claims made on their websites in order to promote other company’s products. False testimonials, unrealistic earnings or results claims, and inaccurate statements of fact have attracted severe penalties. Even the failure to disclose a financial relationship with the actual seller has caused trouble for many affiliates in recent months.