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Perils of Affiliate Marketing Andrew Lustigman, Esq. Partner Bennet Kelley, Esq. Founder Rudy Smith CEO November 21, 2008
What is Affiliate Marketing? ,[object Object],WHAT?
Who uses Affiliate Marketing? ,[object Object],WHO? ,[object Object],[object Object]
Benefits of Affiliate Marketing   ,[object Object],[object Object]
Players in Affiliate Marketing ,[object Object],Publishers or Affiliates  – Third parties that promote the goods, services or benefits of an advertiser (merchant) in an affiliate marketing program in exchange for compensation Merchant –  The advertisers in an affiliate marketing program $$$$$ Ad Ad $$$$$
Methods of Compensation ,[object Object],[object Object],[object Object]
Types of Affiliate Sites ,[object Object],Comparison shopping websites and directories  Coupon and rebate websites that focus on sales promotions
Types of Affiliate Sites  (con’t) Search affiliates -utilize pay per click search engines to promote the advertisers' offers Registration path or co-registration affiliates who include offers from other merchants during the registration process on their own website  Weblogs and website syndication feeds
Acquisition Creatives ,[object Object]
Acquisition Creatives  (con’t ) ,[object Object]
[object Object],Acquisition Creatives  (con’t)
Conversions
Different Types of Networks ,[object Object],[object Object]
Large Networks ,[object Object],[object Object],[object Object]
Third Party  Technology Providers ,[object Object],[object Object],[object Object]
Risks of Affiliate Marketing ,[object Object],[object Object],[object Object],[object Object],[object Object]
Spaminess
CAN-SPAM Principal Requirements From line must  identify initiator Subject line must not be deceptive.  Adult Messages must provide notice. Postal Address for Advertiser Requires Working Opt-Out Mechanism for Advertiser UCE must be identified  as “advertisement ”
CAN-SPAM Act  Advertiser Liability ,[object Object],[object Object]
FTC FAILS TO WIN STRICT LIABILITY  Impulse Media Group Verdict Follows Summary Judgment Denial in Cyberheat ,[object Object],[object Object],[object Object],CAN-SPAM NEWS Strict anti-spam policies and policing of affiliates sufficient to defeat allegation of intent.  Friday Nov. 21, 2008 TOP STORIES   SPAM-DAMONIUM Audience Celebration at Affiliate Marketing Presentation Spills Into Michigan Avenue Cyberheat ultimately settled with FTC and agreed to monitor its affiliates. BUT . . . No duty to investigate
Regulatory Timeline ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],Must Be a Sender Under CAN-SPAM Cannot designate  Non-Sender Designated Sender Rule
Opt-Out Mechanism ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Forward to a Friend Rule
CAN-SPAM Plaintiffs ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
CAN-SPAM Wireless Rules Toe-may-to Ta-mah-to Commercial Email Mobile Service Messages Recipient Consent No Express Consent Required Do Not Send Registry No Wireless Domains List Enforcement FTC FCC
Online Gambling ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Antigua v. United States WTO Battle over Online Gambling ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],ANTIGUA FRIDAY FORECAST 84 ○   AND SUNNY
The High Cost of Free*
 
Tallahassee Three Step Ringtone Offer Landing Page Requirements ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
 
Internet Marketing  FTC v. Adteractive   ,[object Object],[object Object],[object Object],[object Object],[object Object],$650,000 Penalty
FTC Consent Decrees ,[object Object],[object Object],[object Object],[object Object]
New York Affiliate Sales Tax  “Amazon Tax” ,[object Object],[object Object]
New York Affiliate Sales Tax  “Amazon Tax” ,[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],New York Affiliate Sales Tax  “Amazon Tax”
[object Object],[object Object],New York Affiliate Sales Tax  “Amazon Tax”
[object Object],[object Object],[object Object],TT  New York Affiliate Sales Tax  “Amazon Tax”
[object Object],[object Object],[object Object],Remember to call my accountant New York Affiliate Sales Tax – “Amazon Tax”
6/30 TSB ,[object Object],[object Object],[object Object],[object Object]
Exemption Summary ,[object Object],[object Object],[object Object]
“ Amazon” Sales Tax Challenge ,[object Object],[object Object],[object Object]
NY Sales Tax Developments ,[object Object],[object Object],[object Object],[object Object]
Collection and Sharing of Data (Privacy Policies) ,[object Object],[object Object],[object Object]
Datran Case ,[object Object],[object Object],[object Object],[object Object]
Datran Case ,[object Object],[object Object],[object Object]
Datran Case ,[object Object],[object Object],[object Object],[object Object],[object Object]
Questions? Andrew Lustigman, Esq. Partner [email_address] Bennet Kelley, Esq. Founder [email_address] Rudy Smith CEO [email_address]

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Perils of Affiliate Marketing - PMA 2008

  • 1. Perils of Affiliate Marketing Andrew Lustigman, Esq. Partner Bennet Kelley, Esq. Founder Rudy Smith CEO November 21, 2008
  • 2.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8. Types of Affiliate Sites (con’t) Search affiliates -utilize pay per click search engines to promote the advertisers' offers Registration path or co-registration affiliates who include offers from other merchants during the registration process on their own website Weblogs and website syndication feeds
  • 9.
  • 10.
  • 11.
  • 13.
  • 14.
  • 15.
  • 16.
  • 18. CAN-SPAM Principal Requirements From line must identify initiator Subject line must not be deceptive. Adult Messages must provide notice. Postal Address for Advertiser Requires Working Opt-Out Mechanism for Advertiser UCE must be identified as “advertisement ”
  • 19.
  • 20.
  • 21.
  • 22.
  • 23.
  • 24. Forward to a Friend Rule
  • 25.
  • 26. CAN-SPAM Wireless Rules Toe-may-to Ta-mah-to Commercial Email Mobile Service Messages Recipient Consent No Express Consent Required Do Not Send Registry No Wireless Domains List Enforcement FTC FCC
  • 27.
  • 28.
  • 29. The High Cost of Free*
  • 30.  
  • 31.
  • 32.  
  • 33.
  • 34.
  • 35.
  • 36.
  • 37.
  • 38.
  • 39.
  • 40.
  • 41.
  • 42.
  • 43.
  • 44.
  • 45.
  • 46.
  • 47.
  • 48.
  • 49. Questions? Andrew Lustigman, Esq. Partner [email_address] Bennet Kelley, Esq. Founder [email_address] Rudy Smith CEO [email_address]

Notes de l'éditeur

  1. WHILE THE ACT AND THE FTC DETAIL WHAT CONSTITUTES WHEN AN EMAIL TRIGGERS THE PRIMARY PURPOSE RULE, THE EASIEST THING TO DO IS TO ASSUME CAN-SPAM APPLIES BECAUSE ITS REQUIREMENTS ARE SIMPLE DON’T BE DECEPTIVE IN YOUR SUBJECT LINES OR HEADERS HAVE A WORKING OPT-OUT METHOD IRONICALLY ENOUGH, THE ADVERTISER IS REQUIRED TO HAVE AN OPT-OUT LINK, BUT NOT THE MARKETER – ALTHOUGH THIS IS COMMON PRACTICE TO INCLUDE BOTH.
  2. THE FTC CONTINUED TO SUFFER SETBACKS ON ITS VIEW OF STRICT LIABILITY FOR SENDERS INSTEAD – QUITE A PERMISSIVE STANDARD HAS DEVELOPED – SINCE THERE IS NO DUTY TO INVESTIGATE.
  3. Hypertouch v. Kennedy-Western University S trict anti-spam policies and policing of affiliates defeated allegation of intent. ASIS Internet Services v. Opt-In Global, Inc. No duty to investigate
  4. THIS PROPSAL EVOLVED AS IT WAS FORMULATED – BUT IT STEMS FROM THE FACT THAT AS WRITTEN – EMAIL AD NEWSLETTERS WOULD REQUIRE ALL ADVIERTISERS TO COMPLY THE SOLUTION – DESIGNATED SENDER. BUT IT HAS TO BE A SENDER – WHICH IS THE ADVERTISER.
  5. BASIC RULE FOR OPT-OUTS YOU CAN GIVE A CHOICE, BUT NOT CONDITIONS OPT-OUT IS FOREVER
  6. THIS IS A FACT BASED DETERMINATION IF YOU MERELY PERMIT/ENCOURAGE FORWARDING – NOT CAN-SPAM ISSUE IF YOU DO ANYTHING MORE – YOU’RE A SENDER
  7. A CRITICAL ELEMENT OF CAN-SPAM WAS THAT IT HAD NO PRIVATE RIGHT OF ACTION . . . OR DID IT BACKDOOR ATTEMPTS B SPAMIGATORS TO CLAIM THEY ARE IASP HAVE BEEN SHUT DOWN FOR LACK OF SUBSTANTIAL HARM
  8. AN OVERLOOKED, BUT NOT INCONSEQUENTIAL FACT, IS THAT THE FCC ALSO HAS JURISDICTION OVER CAN-SPAM. THE ONLY OPT-IN REQUIREMENT UNDER CAN-SPAM IS FOR WIRELESS EMAIL FCC REGS SPECIFY HOW CONSENT IS TO BE OBTAINED – IT REQUIRES SPECIFIC DISCLOSURES AND CANNOT BE LUMPED IN WITH OTHER CONSENT LANGUAGE.
  9. ONLINE GAMBLING REMAINS ILLEGAL AND ADVERTISING ONLINE GAMBLING – EVEN QUASI GAMBLING SITES CAN SUBJECT YOU TO ACCESSORY LIABILTY NO SIGNS OF CHANGE IN CONGRESS – ALTHOUGH LEGALIZATION WOULD NET $40 BILLION IN TAX REVENUE OVER TEN YEARS THERE IS LIBERALIZATION IN EUROPE, BUT IT IS HIGHLY REGULATED, SO LOOK BEFORE YOU LEAP
  10. WHAT COULD FORCE A CHANGE ARE DEVELOPMENTS AT THE WTO. IP RIGHTS HOLDERS MAY NOT BE VERY PLEASED IF ANTIGUA BECOMES THE PIRATE OF THE CARIBBEAN A MULTI-BILLION DOLLAR BATTLE WITH THE EU OVER ONLINE GAMBLING COULD FORCE THE US TO CHANGE ITS POSITION. BUT UNTIL THEN WE CAN THINK OF WHAT ELSE ANTIGUA HAS TO OFFER
  11. FREE CAN BE VERY VERY EXPENSIVE THIS REPRESENTS THE $3.5 MILLION AT&T PAID TO THE FLORIDA AG
  12. THE STATE OF FLORIDA HAS BEEN ACTIVE IN CRACKING DOWN ON FREE RINGTONE OFFRS.
  13. SETTING CLEAR STANDARDS FOR EACH ELEMENT OF THE REQUIRED DISCLOSURES
  14. EVEN ADDRESSING THE LEVEL OF COLOR CONTRAST REQUIRED
  15. THE FTC HAS SET CLEAR STANDARDS FOR FREE OFFERS IN ITS CONSENT DECREES THAT ADDRESS COLOR, FONT, SIZE AND DISCLOSURE I ASKED THE FTC WHY DIDN’T THEY SUGGEST SELF REGULATORY GUIDELINES IN THIS AREA – IT MIGHT HAVE HELPED GIVEN