Comment by machomaster
2 months ago
> which he (illegally) does not disclose.[0]
"The Guides are intended to give insight into what the FTC thinks about various marketing activities involving endorsements and how Section 5 might apply to those activities. The Guides themselves don’t have the force of law."
That's useful context, thanks!
Though I think the sentence immediately after the one you quoted is also relevant:
> However, practices inconsistent with the Guides may result in law enforcement actions alleging Section 5 violations.
My understanding is that there's no law that says, "You have to disclose if you're an affiliate earning commissions on a recommendation," but the FTC is saying that they interpret Section 5 of the FTC act to imply that, and they may prosecute people under that interpretation, which they have done.[0, 1]
[0] https://www.ftc.gov/system/files/documents/cases/160523lordt...
[1] https://www.ftc.gov/legal-library/browse/cases-proceedings/1...