As if the credit card gods needed any more power, their latest napalm like sweep of the continuity space would make even Attila the Hun blush.

Not that I am against this latest move. Actually I am all for thinning the herd when it comes to deceptive practices. I mean you would have to be pretty dense if you didn’t see the writing on the wall. First the FTC re-iterates its guidelines on online advertising, in particular weight loss and biz opp at the beginning of December. Then on the 15th they file proceed with actions against some larger players. They then proceed to cut off all Acai berry advertisers from their merchant accounts. And in a stunning move, in mid January, both Visa and MC take aim at the continuity community.

Under the banner of “brand damaging”, the credit card companies have decimated almost every well known Biz Opp continuity advertiser there is. This caused a tsunami like effect on the CPA networks, squashing massive amounts of offers under their well buffed wing tips. In what appeared to be a blanket approach rather than a pinpoint attack.

But from the ashes rises a Phoenix. There will be a new set of ground rules. Unfortunately no one knows exactly sure what will take place next. Is continuity dead, well not for some. Magazine publishers, online application providers and software providers won’t have to worry much, since they seem to deliver value in the eyes of the gods. For those who run information products delivered by web only or a Free Trial DVD mailed to their home, well it is a different story.

I spent three days at Affiliate Summit, and a fair amount of that time speaking with Transaction Processors about the situation. Their summation, be compliant and transparent, or face certain elimination. There were several companies there touting that they can get continuity campaigns back up and running as before. Some using European accounts, others utilizing other means to get advertisers back taking credit cards for continuity.

Most solutions seemed like short term stop gap measures that, in my opinion, will only end up getting shut down in another wave of whack-a-guru. I admit, that there will be some advertisers who have been able to weather the storm, and those tend to have rock solid processing relationships with their processors. But the majority have lost most of their continuity business for good.

I recently did an interview with Daegan Smith, an old friend and one of the smartest network marketers I know. We talked for over an hour on how these latest changes are reshaping our industry and how both advertisers and publishers need to be aware of the implications of running campaigns that are not compliant.

Take a listen or better yet, download it to your MP3 Player and take it with you. If you sell anything online or are thinking about it, listen to the podcast with Daegan. I am confident you will find something that applies to your business. If not, then you probably still think CPA stands for Certified Public Accountant.

Listen here:

Or download it here.

If You Promote Non-Compliant Campaigns – You Could Be The One Hauled Into Court

Recently, a disturbing development has shaken the already unstable footing of the online Publisher (or do you say Affiliate). The Attorney General (AG) for the State of Illinois, Lisa Madigan has, “filed consumer fraud lawsuits against three suppliers and a local affiliate marketer of acai berry products charging that the companies lure customers with free trial offers – through aggressive Internet marketing techniques – and then charge customers’ credit cards prematurely, do not always supply the product and make it nearly impossible to cancel.”

This is a significant change and most surely will be the harbinger of things to come.  In the suit, the AG coordinated efforts with Harpo, Inc., producers of “The Oprah Winfrey Show” and “The Dr. Oz Show” both of whom had their likeness infringed upon by the owners of the campaign, Advanced Wellness Research.  In a separate but related action, Harpo has filed suit against AWR and almost 50 other suppliers and their associated agencies for trademark infringement for using Oprah and Dr. Oz’s name and likeness in their campaign materials.

The action of the Illinois AG sends a clear message to not only the Health sector, but to all links in the Performance Marketing chain – make sure what you are promoting is compliant and not deceiving the public in any way.  The Publisher is identified in the suit as Amirouche & Norton, LLC, who are being asked to pay a civil penalty of $50,000.00, and an additional penalty of $50,000.00 per violation of the Consumer Fraud and Deceptive Business Practices Act (where the court finds that the Defendant committed with intent to defraud), as well as an additional $50,000.00 per violation of the same Act as above, but this fine relates to only those instances when the consumer was over the age of 65. It also seeks to bar Amirouche & Norton, LLC from promoting health products ever again.

Pretty steep penalties, just for running a Risk Free Trial offer for Acai Berry.  Doesn’t seem very Risk Free to me.

The Complaint outlines very specifically what the infractions are against the Publisher, these include:

• Using Flogs like Beckysweightloss.com (removed) to mislead consumers about the product benefits.
• Use of celebrities images and names who are not spokesperson’s for the campaign, and misleading consumers into thinking these celebrities endorse the products.
• Failure to disclose the terms and conditions of a “free trial offer” in a place that is clear and conspicuous to the consumer.

The point here is simple: Think BEFORE you Promote.  If you cannot clearly understand the terms of the offer, or it seems deceptive in any way, you may want to replace that campaign with something more compliant.  If a campaign uses a celebrity image, steer clear unless it says specifically that the celebrity is a paid spokesperson and the Advertiser has the paperwork to prove it.  And lastly, the use of “fake blogs” or flogs as the Complaint calls them is never a good idea.  Even if you are selling statues of the Virgin Mary, faking testimonials or making up stories about the product and it’s benefits will only cut your career short in Online Marketing.

In a world where Subway(TM) is being made to rethink their marketing because their super weight loss spokesperson Jared is perceived as promoting submarine sandwiches as a diet plan, it is always best to take the high road.

Story Links:
- Illinois Atty General’s Press Release
- Complaint filed against Publishers, Amirouche and Norton, LLC
- Federal Trade Commission
- Tips on How To Judge if an Offer is Compliant

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