New FTC rules - no more made-up "testimonials"

**Clinton** · February 4th, 2010, 10:50 AM

New FTC steps are making it more difficult for the scammers.

It's now been two months since they came into force.

Included are requirements

to not con consumers with fake testimonials.

Under the revised Guides, advertisements that feature a consumer and convey his or her experience with a product or service as typical when that is not the case will be required to clearly disclose the results that consumers can generally expect.

to disclose if you've paid for your testimonials

“material connections” (sometimes payments or free products) between advertisers and endorsers – connections that consumers would not expect – must be disclosed. These examples address what constitutes an endorsement when the message is conveyed by bloggers or other “word-of-mouth” marketers

How do these new "rules" apply to sites advertised for sale? Can we insist the seller provides copies of all the original testimonials posted on their site? Do we need to?

**tvanslooten** · February 13th, 2010, 11:48 PM

Clinton:

I have spent a great deal of time researching this issue. Technically speaking, if you're buying a site with a bunch of testimonials you need to be careful. As the rules state, these testimonials have to be substantiated now. So yes, if you are buying a site with testimonials, you better make sure they are legit and can be substantiated so demanding proof from the seller is a good idea. The problem is, most sellers probably can't provide such documentation.

Based on what I've seen so far, this rule has been much to do about nothing. I do a lot of browsing online (more than I probably should) and I have only seen a few sites (literally - 3) that have actually complied. The FTC is crazy if they think they'll be able to police this stuff. The new rules are over reaching anyway so I'm a bit gleeful that most web masters are basically giving Uncle Sam the middle finger.

I'm not advocating that people break the law as I have beefed up my disclosure pages myself but to follow the rules to the letter is crazy. For example, technically you're supposed to have a disclosure "near" every affiliate link on your website. Can you imagine actually following that rule? It's crazy. And like I said, nobody is doing it - yet.

But getting back to testimonials, I have to think that is what the FTC is really going to be looking at so if you're buying a site who's sales depend on a bunch of testimonials, and is in a niche the FTC is specifically interested in - weight loss, health, and make money - I would make damn sure the seller can substantiate them. If they can't, then buy the site knowing you'll have to remove them - IF you're afraid of the FTC knocking on your door - or take the risk and leave them up as-is.

Travis

**DomainMagnate** · February 17th, 2010, 03:36 PM

What I'm wondering is have there been any cases where the FTC took action upon these new rules?

**Clinton** · February 18th, 2010, 06:33 AM

DM, if you're bored you could always find out first hand. Ask a few Flippa sellers for proof of testimonials. If they get back with a "This is IM, mate, testimonials don't need to be real," you could forward to the FTC to see what happens.

For best results pick US based sellers.

**tvanslooten** · February 18th, 2010, 11:03 PM

Not any well-known cases yet - that I can tell. As Internet Marketers, we'd know pretty quickly if any of the big name players got nabbed - who would likely be primary targets for the FTC. The FTC is all about making headlines. They aren't going to bother coming down hard on the guy that has some $100/month affiliate site. Sure that person may get a warning someday (IF someone complains to the FTC to begin with), but he isn't going to get nailed to the wall. You can bet, however, that the FTC is trolling to find the big players messing up so that examples can be made of them.

Travis

Originally Posted by DomainMagnate

What I'm wondering is have there been any cases where the FTC took action upon these new rules?

**Clinton** · February 19th, 2010, 05:10 AM

I don't mind if they start with the big players. As long as that makes headlines and scares the sh*ts into the scammers

**Clinton** · December 5th, 2011, 09:12 AM

I gave one or two examples of "video testimonials" sites in Flippa, but I can't seem to find that thread. So I'm posting this link in here instead:

https://flippa.com/2671921-300-week-...ofit-instantly

**Devon** · December 6th, 2011, 06:18 AM

When you talk about testimonials are you talking about the transaction feedback or an actual site? The reason I ask is because I as you know am looking at the possibility of buying a site and being new to this world I don't know how credible the transaction feedback is. Those are the only testimonials that I can think of, unless it's a site that is selling a product looking for people to talk about how great it is.

**Clinton** · December 6th, 2011, 09:16 AM

I'm talking about the whole nasty mess of buying and selling testimonials.

If you buy a site that publishes customer testimonials on it, better make sure you get a copy of the original emails those customers sent (with their photo!) praising the product.

If those turn out to be "invented" testimonials - don't deal with the site seller, he's a crook! He has been lying to his customers, he could be lying to you, he cannot be trusted ... and the site is in violation of UK and US law.

**ClaytonL** · December 6th, 2011, 10:37 AM

I don't know how it is over there, but I wouldn't take the time to verify a testimonial testimonial let alone get a photo, UNLESS I'm working in a generally scammy niche like weightless. The FTC here has no interest in chasing small businesses around to verify testimonials, especially if there is no reason to believe that testimonials are being made up.