New Affiliate Marketing Laws for Lead Gen October 1st
John Dozier, Attorney and President of Dozier Internet Law just gave me a heads up on something he thought my readers should know about. It sounds to me like this only applies to lead gen offers. I’m If the affiliate sends traffic to the lead gen form on the merchant’s site, then I’m not certain it’s a concern. But if the lead gen form is on your site or you have a lead gen service, then you should read up and see if it applies to you.
New Affiliate Marketing Laws Go Into Effect October 1, 2008
“The affiliate marketing provisions of the Fair and Accurate Credit Transactions Act (”FACTA”) go into effect October 1, 2008. Dozier Internet Law has added the compliance analysis to our legal audits. In a nutshell (it is really quite complicated) an affiliate marketer transferring leads or personally identifiable information to its advertiser requires advance notice to a consumer and an effective 30 day opt-out option.
Penalties? Up to $1,000 per violation (per each solicitation attempt), plus punitive damages and attorneys’ fees. In other words, violations will likely bring class action lawsuits and create exposure that is enormous for affiliate marketers. Dozier Internet Law recommends…“
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#1 peter bordes wrote on Friday, August 22nd, 2008:
Linda
thank you very much for this info. i will pass it along to our lead gen team.I think we are going to see more of these regulations coming in 2009. i think it is good for the industry as we need to focus on quality data and creating value for the consumer thru a better user experience…
#2 Linda Buquet wrote on Friday, August 22nd, 2008:
You are very welcome Peter. I was glad John gave me the heads up about it.