Determining the Validity of

Previously in this column we’ve discussed the fact that when you run an offer on your network, or as a publisher, you have a responsibility to reasonably verify claims made in that offer. I know that’s an unpopular burden to bear, but that’s how the FTC looks at it according to their guidelines.

That necessarily leads to the question, "how do I go about doing reasonable due diligence if I’m in doubt about a claim?" Deferring again to the FTC’s own publications, here is what they suggest:

"No network or affiliate wants to be an unwitting conduit for deceptive claims. Likewise, list professionals do not wish to unknowingly assist in promoting misleading direct marketing promotions. The best defensive weapon in your arsenal is your gut instinct that a particular ad promises more than it could possibly deliver. Your company’s own credit department, business office, or consumer reporter also can be excellent sources. And www.consumer.gov puts a wealth of information at your fingertips.

To check out the history, business practices, or general reputation of a firm submitting questionable advertising, contact:

The Better Business Bureau (in the advertiser’s area)
State or local consumer agencies
Your state attorney general’s office
Postal Inspector (in the advertiser’s area)
Trade Associations

Other organizations that may be able to help you evaluate the validity of an advertising claim include:

Direct Marketing Association, Inc..
1111 19th Street, NW, Suite 1100
Washington, DC 20036-3603

.1111 19th Street, NW, Suite 1100Washington, DC 20036-3603

Federal Trade Commission
600 Pennsylvania Avenue, NW
Washington, DC 20580

600 Pennsylvania Avenue, NWWashington, DC 20580

United States Postal Inspection Service
P.O. Box 96096
Washington, DC 20066-6096

P.O. Box 96096Washington, DC 20066-6096

North American Securities Administrators Association
One Massachusetts Avenue, NW
Washington, DC 20001-1401

One Massachusetts Avenue, NWWashington, DC 20001-1401

Food and Drug Administration
5600 Fishers Lane, Room 1685
Rockville, MD 20857

5600 Fishers Lane, Room 1685Rockville, MD 20857

Council of Better Business Bureaus
4200 Wilson Boulevard
Arlington, VA 22203

4200 Wilson BoulevardArlington, VA 22203

Commodity Futures Trading Commission
1155 21st Street, NW
Washington, DC 20581

1155 21st Street, NWWashington, DC 20581

Securities and Exchange Commission
450 Fifth Street, NW
Mail Stop 11-2
Washington, DC 20549"

450 Fifth Street, NWMail Stop 11-2Washington, DC 20549"

In the event that you are ever contacted by the FTC regarding a "claims" offer that you have run, the more of these resources you can cite that you used, the more likely the FTC is to determine that you have acted "reasonably" under the circumstances. This is why I continually recommend that you familiarize yourself with the resources located at www.ftc.gov. If you find it overwhelming, here’s a great place to start:

http://ftc.gov/bcp/menus/business/adv.shtmhttp://ftc.gov/bcp/
menus/business/adv.shtm

Knowledge of the laws, rules and regulations that govern your business will help keep your business legally healthy for years to come.

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Come back to the iLegal column every week as we get specific about the rules, regulations, laws and trends that affect the online advertising industry. Each week we discuss important legal issues, talk about how to avoid the pitfalls, and cover the breaking legal and regulatory advertising industry news.

Legal Disclaimer: Information conveyed in this column is provided for informational purposes only and does not constitute legal advice. These materials do not necessarily reflect the opinions of Digital Moses, and is not guaranteed to be complete, correct, or up-to-date. The column is provided for "information purposes" only and should not be relied upon as "legal advice." This information is not intended to substitute for obtaining legal advice from an attorney. No person should act or rely on any information in this column without seeking the advice of an attorney.

Mark Meckler is the General Counsel for UniqueLeads.com, Inc., and Unique Lists, Inc.

Copyright 2007 Mark J. Meckler