· Issue 27 · August 2014
Alexander D. Boyd
tl;dr - Concepts for reducing the risk of running an affiliate website.
Understanding and Reducing Your
Website’s Risk
by Alexander D. Boyd
Content is still protected even if it is posted on the internet. Check with your advertiser, network, or other source of the content before posting it on your own website. If other
I
people are posting content to your website, consider regisn an ideal world, we could operate affiliate websites that
tering under the Digital Millennium Copyright Act (DMCA)
are both profitable and risk free. In reality, successful
for some protection.
websites face a variety of risks in the form of regulations,
One of the more difficult areas for many affiliates is
intellectual property claims, and consumer complaints, to
complying with the Federal Trade Commission’s (FTC’s)
name a few.
guidelines for online advertising. Understanding the basic
The goal for successful affiliates is to reduce risk with-
concepts is the first step to compliance. The FTC’s overarch-
out reducing conversions. The first step in this balancing
ing task is to make sure businesses of all kinds are not de-
act is understanding the concepts behind these risks and
ceiving consumers.
potential solutions. Once you understand the risk, you can better decide how to address it.
Ask yourself, “What would a reasonable person think when looking at my website?” If they are likely to miss im-
Some risk is inherent in any business, including the
portant information or be misled, then you may need to
risk that comes with daily customer transactions and con-
rearrange your website, add disclosures, or revise your of-
tracts. The goal is to limit liability and make sure both you
fer or claims.
and your user understand your relationship. It is often a
In its pursuit of deception, the FTC has issued spe-
good idea to form an entity (LLC or corporation) to reduce
cific rules and guidance in many areas relevant to affiliate
your personal liability.
marketers. All claims must be substantiated by reasonable
For websites, the next step is to create clear terms of
evidence. Continuity programs and “free” offers must dis-
service governing the customer’s use of your website. Fi-
close certain terms. Any necessary disclaimers must be
nally, posting a privacy policy places your users on notice
easy to see and understand. If you provide clear terms
that you may collect and use their information in certain
and disclaimers, and provide truthful information, you will
ways. Always make sure to follow your own terms and pri-
greatly increase your level of compliance. However, you
vacy policy.
may want to seek advice on the FTC’s specific rules rel-
Another area of concern for many affiliates is intellec-
evant to your area.
tual property, like copyrights or trademarks. The risk arises
Reducing risk does not necessarily mean reducing
when you use pictures, articles, or logos that you did not
conversions. While websites face many types of risk, un-
create. Generally, if your content came from somewhere
derstanding the risk and solutions allows you to make an
else, you need to make sure you have the right to use it.
informed decision and a more successful business.
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Alex Boyd is an internet law attorney at Fraser Stryker PC, LLO in Omaha, Nebraska.