New FTC Guidelines: Your FTC Earnings Claims are Being Monitored
Chip Cooper
eCommerce Attorney. I help marketers, advertisers & agencies solve their FTC earnings claim compliance problem for a fixed, flat fee. Get new strategies by downloading my Earnings Claim Guide and newsletter (Link Below)
New FTC guidelines for earnings claims have increased NAD’s monitoring of ad claims.
What is NAD?
The National Advertising Division (NAD) of the Better Business Bureau and the Federal Trade Commission (FTC) are two separate entities, but they share a collaborative relationship when it comes to regulating and monitoring advertising practices in the United States.
NAD is a self-regulatory organization that closely follows FTC policy and precedent with its routine monitoring program for ad claims, including the new FTC guidelines for earnings claims.
FTC Definition of Earnings Claim:
??? *? An oral, written, or visual representation,
??? *? To a prospective customer,
??? *? That conveys expressly:
????????- A specific level/range of actual or potential sales,?
?????? ?- Gross or net income or profits.
Shizhan Sun: Mobile App Software Marketing Company
NAD’s monitoring revealed the following earnings claims that appeared to violate the new FTC guidelines.
??? *? “I haven’t worked in 2 years.”?
??? *? “It’s $100-600 per day.”
??? *? “Look at my proof: You have received $20,681.66 USD to your eWallet from Woody Block.
??? *?? Current Balance: $22,471.16 USD.”
??? *? “You have received $26,837.66 to your eWallet from Woody Block.”
Conclusion
Despite repeated outreach attempts, Shizhan Sun did not submit a substantive response to NAD’s inquiry regarding the earnings claims or participate in NAD’s self-regulatory process.
=>The Result: NAD referred this matter to the FTC for review and possible enforcement action.