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An Overview of MLM Advertising FTC Regulations
MLM Advertising is, simply put, a necessity. It doesn’t matter if you are using Google Adwords, Social Networking Communities, Forums, Emails, Article Submissions or anything else, all must abide by the FTC regulations. The U.S. Federal Trade Commission has specific guidelines for Internet advertising that most people ignore or don’t know anything about. Helping them learn about some of the areas the FTC cracks down on would only be the right thing to do.
The three general guidelines that work for regular advertising around the nation also work the same for MLM Advertising. The main goal is that all advertising work truthfully and not be misleading in any way. Keeping everyone out of harms way as far as scams and fraudulent activity.
The second of three include having solid information for what the website is expressing. So if they are saying they will guarantee the best leads to help with your MLM Advertising, they better do it. If not, many lawsuits and other legal action will be soon to follow.
Then the third involves simply being fair. Now even though this area is probably the vaguest of them all, it’s just as important. A good example is a company telling you they will offer you 3,000 leads for free for your MLM Advertising. Which they do but they are extremely old and worthless, yet they did what they had said they would.
It’s a fine line, but so is a lot of things people do while focusing on MLM Advertising. One of the issues is the FTC has a hard time regulating the entire Internet. That’s why people will find scams stay on the Internet for several months if not years after they have been caught and exposed. Even though they are out in the open, it still leaves room for error.
After the Big 3, the rest some common sense and some not still make their marks within the guidelines. Like giving refunds to those who are unsatisfied. One that many don’t really think about and we’re sure so many don’t do it is the Business Opportunity Rule.
Basically, this means you must give a person that is purchasing a business or franchise from you a disclosure. It must be done within ten days before the person buying hands over any money. Interesting and certainly something that most don’t read even if they get one.
MLM Advertising is so important to the Internet industry the FTC has its own rule on it. Which is “multi-level marketing companies should pay commissions for the retail sale of goods or services, not for recruiting new distributors (pyramid schemes).” The key word in that whole statement is “should” which is almost like saying, “Hey we got a loophole.” Doesn’t mean they do, it just comes across that way.
There is a lot more to the FTC then what’s been provided here. We recommend always keeping up on the rules. You never know when they will change and who they will affect. If it has to do with MLM Advertising it will most likely affect you.
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Learn more about Brian Garvin and Jeff West at
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