Performance Marketing Insider has learned that the FTC has alerted at least half-a-dozen networks that they are in the target for possible enforcement actions. These networks have received what are called “civil investigative demands” which have asked networks to provide information about their practices and specific affiliates they are doing business with.
According to insiders, the CIDs have been mainly sent to affiliate networks that were involved with Acai and Flog sites, and are mainly being used compile a list of possible companies to go after. It seems also that attorneys for the FTC have already made it clear with some of the networks, that they can chose to settle and sign an agreement immediately – or will face actions in the future.
With enforcement actions being very expensive and even leading to putting companies out of business, these actions are concerns to both the networks and the affiliates. Super-Affiliates including Tanner Vaughn and Ricardo Jose Labra faced actions and had their assets taken, when the FTC learned about their actions from CPA Networks in previous CID’s. One can assume that more affiliates will face possible actions for promoting offers in a deceptive manner, including using flogs.
Written by pacelattin
Pace Lattin is one of the top experts in interactive advertising, affiliate marketing. Pace Lattin is known for his dedication to ethics in marketing, and focus on compliance and fraud in the industry, and has written numerous articles for publications from MediaPost, ClickZ, ADOTAS and his own blogs. click here