So reading todays Marketing week I came across an article about how online marketers could now be confronted with criminal proceedings if they don’t adhere to Consumer Protection from Unfair Trading Regulations 2008 according to European law firm Osborne Clarke. You can find information on this Consumer Protection from Unfair Trading regulation 2008 here.
Now I’m no lawyer but if you consider that these will come into force on May 26th there are some pretty big implications, for one, companies that use online marketing will most likely be made to inform their viewers of any product placements, not a big deal if you have banners and you add (advertisment) below, but this act takes things a step further and will have some implications for bloggers and review writers. The practice of writing sponsored reviews (astroturfing) will apparently be outlawed, when you think about it, its not that far from writing a review for a Merchant, so does this mean that affiliates would be breaking the law by creating affiliates? (still not sure), Buzz marketers are also on the firing line, as marketing week puts is.
Conducting any marketing without stating that they are doing so on behalf of a brand could result in the company being found on the wrong side of the law. - marketing week 22.05.08 (pg13).
Now I’m not sure but where does an affiliate site fall under this statement, we are marketing a brand after all, and doing so on behalf of the brand, in that we get a commission for any sales, so does this mean that affiliates and networks are struck by the broad stroke of this new law, that also covers Spam?
The consequences are equally as bad, with directors, and even company secretaries being potentially, personally liable for offenses and the most extreme punishment is 2 years jail, sentence. Personally I feel that this law has some serious implications for affiliates and I don’t think the law has been written with enough consideration to Affiliate marketing and the ‘white hat’ side of affiliate marketing.