Affiliate Marketing Guidelines
Around this time last year, the FTC argued that CAN-SPAM imposed strict liability on marketers for the emailing activities of their affiliates. A federal judge in Arizona disagreed, and handed what at the time seemed like a loss to the FTC. Now the FTC has settled with the advertiser. As Reasonable Basis notes, the advertiser has to pay around 400K, but more importantly it agreed to enter into a stipulation which requires the advertiser to take certain precautions with respect to its advertising activities:
- Contractually require the affiliate to identify any subaffiliates it intends to use
- Provide each affiliate a copy of the Order
- Obtain from each affiliate an express agreement to comply with the Order and the CAN SPAM Act
- Contractually require each affiliate that intends to use email marketing to provide Cyberheat, at least 7 days before the campaign, the email address from which the email will be sent, the subject line, the proposed dates the email will be sent, the email addresses to which the email will be sent, and a certification regarding how the addresses were obtained
- At least 3 days prior to an email campaign being conducted, Cyberheat must review the campaign for compliance with the CAN SPAN Act and provide written acknowledge that it has reviewed the campaign and that it complies with the CAN SPAM Act, and
- Require each consumers that signs up for Cyberheat service to identify the manner through which they heard of the service. If they heard of the service via email, Cyberheat must monitor the affiliate that sent the email for continued compliance with the CAN SPAM Act
So there you have it. In entering into agreements with affiliates/independent marketers, it definitely helps to (1) provide the affiliate with detailed CAN-SPAM requirements; (2) require the marketer to certify how and where the receiving email addresses were obtained and compliance with the CAN SPAM requirements; and (3) review a copy of the proposed emails (from line, subject line, etc.) and approve the actual emails. Many marketers probably already do this anyway, so this is not earthshattering. But I suppose it's helpful in the sense that it's an indication of what the FTC views as adequate due diligence to keep affiliates in check.


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