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Best Practices for  Advertisers and Affiliates A View from the Regulators,  ISPs, and Industry Steven Richter   President and General Counsel, Media Breakaway, LLC   Eileen Harrington   Deputy Director, FTC's Bureau of Consumer Protection   Bennet Kelley   Assistant General Counsel, ValueClick, Inc.   Aaron Kornblum  Sr. Attorney, Worldwide Sales Group, Microsoft Corp. Pete Wellborn   Attorney, Wellborn & Wallace, LLC
[object Object],[object Object],[object Object],Pete Wellborn Attorney-at-Law [email_address] WELLBORN & WALLACE, LLC   Attorneys-at-Law
AFFILIATE DRIVES TRAFFIC/SALES TO MERCHANT SITE AFFILIATE PROGRAMS 101
WHEN IS  LIABLE FOR  ? AFFILIATE PROGRAMS 101
LAW 101 Respondeat Superior (Employer liability for employee) Q: Is the Affiliate an “employee” ? A: Control Test: Time & Manner ALMOST CERTAINLY NOT
LAW 101 Independent Contractors Principal liable for contractor acts only under limited circumstances
LAW 101 Liability For Contractors’ Acts (Affiliates’)    Participation     Ratification/Adoption    Willful Ignorance    Negligent Hiring
What will your answer be when you receive a demand letter or lawsuit seeking to hold you responsible for the misconduct of your affiliate?
“ NO PROBLEM!”  (. . . if you follow this advice . . .)
WHO     WHAT      WHERE WHO WHOM ARE YOU DEALING WITH? (WHO IS YOUR AFFILIATE?)
WHO      WHAT     WHERE WHAT WHAT TERMS AND GUARANTEES WILL YOU REQUIRE FROM YOUR AFFILIATE?    Eligibility    Copyright Acknowledgments    Compliance (CAN-SPAM)    Compliance (ISP AUP/CEP)    Sub-Affiliate Voucher    Indemnify, Defend & Hold Harmless    Consent to Release Info    Boilerplate
WHO     WHAT      WHERE WHERE WRITTEN AGREEMENT EXECUTED BY BOTH PARTIES
WHO     WHAT     WHERE Seed suppression lists
Bennet Kelley Assistant General Counsel Director of Govt’l Affairs & Privacy ValueClick, Inc. Westlake Village, CA [email_address] PART TWO ADVERTISING BEST PRACTICES Steven Richter President and General Counsel Media Breakaway, LLC Westminister, CO [email_address]
These materials have been prepared for informational purposes only and are not legal advice. Transmission of the information is not intended to create, and receipt does not constitute, an attorney-client relationship. Internet subscribers, listeners and online readers should not act upon this information without seeking professional counsel. The information contained in this presentation and/or web site is provided only as general information which may or may not reflect the most current legal developments. This information is not provided in the course of an attorney-client relationship and is not intended to constitute legal advice or to substitute for obtaining legal advice from an attorney licensed in your state. This web site is not intended to be advertising and neither Media Breakaway, LLC nor its officers, members, employees, or agents wish to represent anyone desiring representation. Privacy Concerns & Advertising Content Regulations   Three letters you want to avoid :  FTC, FDA, DOJ, FBI DISCUSSION TOPICS
PRIVACY CONCERNS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
FTC Privacy Enforcement Accuracy & Fairness ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Wares ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Spyware ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Enforcement
The FTC Act ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],You don’t want to mess with me
What makes an  advertisement deceptive or unfair? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
ADVERTISING CONTENT ,[object Object],[object Object],[object Object],[object Object],Use of the word “FREE” EXAMPLE One Ohio lawyer (also a Plaintiff in several lawsuits) believes that Ohio law requires that, when the word "FREE" is used:  (3) NO ASTERISK Disclosure of offer terms set forth in a footnote of an advertisement, to which reference is made by an asterisk or other symbol placed next to the offer, does not constitute “disclosure at the outset.”
ADVERTISING CONTENT   Disclaiming “FREE” ,[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],ADVERTISING CONTENT
ADVERTISING CONTENT Example: Online Gambling ,[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],ADVERTISING CONTENT The government is  here to help you
[object Object],ADVERTISING CONTENT FTC Dot Com Disclosures   http://www.ftc.gov/bcp/conline/pubs/buspubs/dotcom/index.pdf ,[object Object],•  OBVIOUS •  LABEL •  STYLE •  LOCATION •  STRAIGHT LINK •  EFFECTIVENESS •  INSTRUCTION •  NOT SUBTLE •  BANNER
ADVERTISING CONTENT ,[object Object],FTC Dot Com Disclosures   http://www.ftc.gov/bcp/conline/pubs/buspubs/dotcom/index.pdf ,[object Object],•  OBVIOUS •  LABEL •  STYLE •  LOCATION •  STRAIGHT LINK •  EFFECTIVENESS •  INSTRUCTION •  NOT SUBTLE •  BANNER
ADVERTISING CONTENT ,[object Object],FTC Dot Com Disclosures   http://www.ftc.gov/bcp/conline/pubs/buspubs/dotcom/index.pdf ,[object Object],•  OBVIOUS •  LABEL •  STYLE •  LOCATION •  STRAIGHT LINK •  EFFECTIVENESS •  INSTRUCTION •  NOT SUBTLE •  BANNER
ADVERTISING CONTENT ,[object Object],FTC Dot Com Disclosures   http://www.ftc.gov/bcp/conline/pubs/buspubs/dotcom/index.pdf ,[object Object],•  OBVIOUS •  LABEL •  STYLE •  LOCATION •  STRAIGHT LINK •  EFFECTIVENESS •  INSTRUCTION •  NOT SUBTLE •  BANNER LINK INFO
ADVERTISING CONTENT ,[object Object],FTC Dot Com Disclosures   http://www.ftc.gov/bcp/conline/pubs/buspubs/dotcom/index.pdf Take consumers directly to the disclosure on the click-through page. •  OBVIOUS •  LABEL •  STYLE •  LOCATION •  STRAIGHT LINK •  EFFECTIVENESS •  INSTRUCTION •  NOT SUBTLE •  BANNER
ADVERTISING CONTENT ,[object Object],FTC Dot Com Disclosures   http://www.ftc.gov/bcp/conline/pubs/buspubs/dotcom/index.pdf Assess the effectiveness of the hyperlink by monitoring click-through rates and make changes accordingly.  Be prepared to show the link is effective. •  OBVIOUS •  LABEL •  STYLE •  LOCATION •  STRAIGHT LINK •  EFFECTIVENESS •  INSTRUCTION •  NOT SUBTLE •  BANNER
ADVERTISING CONTENT ,[object Object],FTC Dot Com Disclosures   http://www.ftc.gov/bcp/conline/pubs/buspubs/dotcom/index.pdf ,[object Object],•  OBVIOUS •  LABEL •  STYLE •  LOCATION •  STRAIGHT LINK •  EFFECTIVENESS •  INSTRUCTION •  NOT SUBTLE •  BANNER
ADVERTISING CONTENT ,[object Object],FTC Dot Com Disclosures   http://www.ftc.gov/bcp/conline/pubs/buspubs/dotcom/index.pdf ,[object Object],•  OBVIOUS •  LABEL •  STYLE •  LOCATION •  STRAIGHT LINK •  EFFECTIVENESS •  INSTRUCTION •  NOT SUBTLE •  BANNER
ADVERTISING CONTENT ,[object Object],FTC Dot Com Disclosures   http://www.ftc.gov/bcp/conline/pubs/buspubs/dotcom/index.pdf ,[object Object],•  OBVIOUS •  LABEL •  STYLE •  LOCATION •  STRAIGHT LINK •  EFFECTIVENESS •  INSTRUCTION •  NOT SUBTLE •  BANNER Important Stuff  Goes Here
[object Object],[object Object],ADVERTISING CONTENT At least 30 days should elapse before another such offer is promoted in the same trade area. No more than three such offers should be made in the same area in any 12-month period. A single size of a product or a single kind of service should not be advertised with a “Free'' offer in a trade area for more than 6 months in any 12-month period.
CONCLUSION Never  underestimate the value of giving your competition a bad client. Quarterly attorney review of Privacy Policy. Strict compliance of Privacy Policy. Awareness of current Federal and State law and regulations. The fact that “the competition is doing it”  does not make it right.
[object Object],[object Object],Pete Wellborn Attorney-at-Law [email_address] Aaron Kornblum  Sr. Attorney, Worldwide Sales Group, Microsoft Corp.
Secure platforms, products and services strengthened by safety innovations, user guidance and industry cooperation efforts to help keep customers safe ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Microsoft’s Online Safety Strategy
ISP Enforcement Strategies ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
QUESTIONS?

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Best Practices For Advertisers and Affiliates

  • 1. Best Practices for Advertisers and Affiliates A View from the Regulators, ISPs, and Industry Steven Richter President and General Counsel, Media Breakaway, LLC Eileen Harrington Deputy Director, FTC's Bureau of Consumer Protection Bennet Kelley Assistant General Counsel, ValueClick, Inc. Aaron Kornblum Sr. Attorney, Worldwide Sales Group, Microsoft Corp. Pete Wellborn Attorney, Wellborn & Wallace, LLC
  • 2.
  • 3. AFFILIATE DRIVES TRAFFIC/SALES TO MERCHANT SITE AFFILIATE PROGRAMS 101
  • 4. WHEN IS LIABLE FOR ? AFFILIATE PROGRAMS 101
  • 5. LAW 101 Respondeat Superior (Employer liability for employee) Q: Is the Affiliate an “employee” ? A: Control Test: Time & Manner ALMOST CERTAINLY NOT
  • 6. LAW 101 Independent Contractors Principal liable for contractor acts only under limited circumstances
  • 7. LAW 101 Liability For Contractors’ Acts (Affiliates’)  Participation  Ratification/Adoption  Willful Ignorance  Negligent Hiring
  • 8. What will your answer be when you receive a demand letter or lawsuit seeking to hold you responsible for the misconduct of your affiliate?
  • 9. “ NO PROBLEM!” (. . . if you follow this advice . . .)
  • 10. WHO  WHAT  WHERE WHO WHOM ARE YOU DEALING WITH? (WHO IS YOUR AFFILIATE?)
  • 11. WHO  WHAT  WHERE WHAT WHAT TERMS AND GUARANTEES WILL YOU REQUIRE FROM YOUR AFFILIATE?  Eligibility  Copyright Acknowledgments  Compliance (CAN-SPAM)  Compliance (ISP AUP/CEP)  Sub-Affiliate Voucher  Indemnify, Defend & Hold Harmless  Consent to Release Info  Boilerplate
  • 12. WHO  WHAT  WHERE WHERE WRITTEN AGREEMENT EXECUTED BY BOTH PARTIES
  • 13. WHO  WHAT  WHERE Seed suppression lists
  • 14. Bennet Kelley Assistant General Counsel Director of Govt’l Affairs & Privacy ValueClick, Inc. Westlake Village, CA [email_address] PART TWO ADVERTISING BEST PRACTICES Steven Richter President and General Counsel Media Breakaway, LLC Westminister, CO [email_address]
  • 15. These materials have been prepared for informational purposes only and are not legal advice. Transmission of the information is not intended to create, and receipt does not constitute, an attorney-client relationship. Internet subscribers, listeners and online readers should not act upon this information without seeking professional counsel. The information contained in this presentation and/or web site is provided only as general information which may or may not reflect the most current legal developments. This information is not provided in the course of an attorney-client relationship and is not intended to constitute legal advice or to substitute for obtaining legal advice from an attorney licensed in your state. This web site is not intended to be advertising and neither Media Breakaway, LLC nor its officers, members, employees, or agents wish to represent anyone desiring representation. Privacy Concerns & Advertising Content Regulations Three letters you want to avoid : FTC, FDA, DOJ, FBI DISCUSSION TOPICS
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  • 38. CONCLUSION Never underestimate the value of giving your competition a bad client. Quarterly attorney review of Privacy Policy. Strict compliance of Privacy Policy. Awareness of current Federal and State law and regulations. The fact that “the competition is doing it” does not make it right.
  • 39.
  • 40.
  • 41.

Notas del editor

  1. This is Missy Ward, Director of Public Relations for Media Breakaway – home of CPAEmpire.com and I’m excited to have you all here today for the next in our series of Webinars for our Affiliates and Advertisers, entitled Advertising Best Practices. Joining me today is our Guest Speaker, Steven Richter, President and General Counsel for Media Breakaway. Many of you may have had the opportunity to meet Steven at various industry events, but for those of you that have not, I’ll give you a little background on him. Steven is a highly recognized Internet Law Attorney and has served as General Counsel to many Internet-based businesses. He frequently speaks at various industry events and has published articles pertaining to Internet law and litigation. Steven received his undergraduate degree in Business Administration from Pace University and graduated from Newport University Law School. He obtained his Certified Public Accountant license and began work for Peat, Marwick & Mitchell, CPA's, where he was a tax supervisor specializing in assisting attorneys involved in civil and criminal tax controversy and litigation. In 2001, Mr. Richter made his move to the Internet and has subsequently found his permanent home here at Media Breakaway. We’re thrilled to have him here today to speak on a topic that he knows so well. This Webinar will focus on how advertisers and affiliates can limit their legal risks associated with advertisements and still effectively market online. At the close of this presentation we’ll open it up to a brief Q&A session. You can submit questions throughout the webinar, using the form shown on your screen. A replay of this presentation will also be available after the webcast. So without further ado, I’d like to introduce Steven Richter who is going to get into today’s Discussion Topics.
  2. Steve presents and talks about slide. End of Slide: [Missy]: I know something that you’re always drilling into our heads here at Media Breakaway is for us to make sure that we’re complying with all of the regulations surrounding the word “Free”. Can you give us the scoop on how that word can be used and what the ramifications are if they’re not used right…
  3. Steve presents and talks about slide. End of Slide: [Missy]: I know something that you’re always drilling into our heads here at Media Breakaway is for us to make sure that we’re complying with all of the regulations surrounding the word “Free”. Can you give us the scoop on how that word can be used and what the ramifications are if they’re not used right…
  4. Steve Presents and Talks about slide
  5. Steve presents and talks about slide. End of Slide: [Missy]: This is a lot of information Steve. Is there any place that our advertisers and affiliates might be able to get more information on how to comply with best practices today?
  6. &
  7. Steve presents and talks about slide. End of Slide: [Missy]: I know our Compliance Department kicks back creatives to our advertisers and makes additional suggestions to our affiliates regarding hyperlinks to disclosures all the time. Can you talk about that a little for us today.
  8. Steve presents and talks about slide.
  9. Steve presents and talks about slide.
  10. Steve presents and talks about slide.
  11. Steve presents and talks about slide.
  12. Steve presents and talks about slide.
  13. Steve presents and talks about slide.
  14. Steve presents and talks about slide.
  15. Steve presents and talks about slide.
  16. Steve presents and talks about slide.
  17. Steve presents and talks about slide.
  18. This is a lot of stuff. Again, I assume you are going to explain with examples.
  19. This is a lot of stuff. Again, I assume you are going to explain with examples.