In 2009 the Federal Trade Commission (FTC) issued rules that require affiliate marketers to disclose any relationships they may have with other online retailers/business owners.
The FTC wanted to make sure that online consumers knew the difference between genuine recommendations that were not tied to commissions or receiving free products in exchange for an endorsement, as opposed to when something was being promoted through an affiliate link.
The FTC rule further stipulated that any disclosure must be clear and conspicuous such that readers can decide for themselves how much weight to give a recommendation or endorsement.
Be aware that it’s very important that the link and the disclosure are in close proximity. For example, where you have included an affiliate link in a blog post you could say something like, “I receive commissions for purchases made through links in this post.” However, if the link and the disclosure are not in close proximity, readers may lose the connection, and the FTC doesn’t like that.
The guiding principle is that the disclosure must be “clear and conspicuous.” The closer the link to the disclosure, the better. Putting disclosures in obscure places — for example, in a footer or in a terms of service agreement — isn’t enough to satisfy the FTC. Consumers shouldn’t have to hunt for the disclosure; it should be easily noticeable. Additionally, it’s not enough to simply have a link that says, “affiliate link” because a consumer may not understand that this means the site owner is getting paid for purchases made through the link.
These same rules apply to product reviews you may give on someone else’s website, in the comments’ section of a website, and to any affiliate links you may include on Twitter or Facebook… or anywhere else for that matter.
However, if you have paid advertisements on your website, and it is clear that they are paid ads, you are not required to make additional disclosures; the FTC evaluates ads from the perspective of what a “reasonable consumer” would think or conclude based on your website’s content.
Here are some examples of what to put in your disclaimer or disclosure statement:
Example #1: “Affiliate Disclosure: Please be advised that the links in the post are affiliate links, which means that I receive a commission if you decide to purchase this product through my website.”
Example #2: “I am proud and grateful for the opportunity to be able to provide you with free content on this website. However, when you click links in this post that lead to products available for purchase, it is likely that I will receive a referral commission. Please know that I would not include such links if I didn’t believe in the quality of the product or service being offered.”
Example #3: “AFFILIATE DISCLOSURE: I receive a commission for products you purchase through links on this post. This doesn’t mean you pay more for the product or service and in fact you may actually receive a special discounted rate for my website visitors.”
Remember, affiliate links must be clear and conspicuous; a visitor to your site should not have to scroll around or click elsewhere to figure out that you receive a commission.
Finally, it’s not enough to tell your website visitors that they can “click HERE to read our disclosure.” This does not make it clear that this is an affiliate link. You must include the nature of the disclosure, not simply the word “disclosure.”
Example #4: “DISCLOSURE: We receive a commission when you purchase products and services through links on this website. Click HERE for more details.” (This could then link to the requisite FTC disclosure elsewhere on your site.)
The bottom line: be transparent. Don’t use smoke and mirrors. Cover your assets online, at all costs.