The FTC just posted a list of 1,100 business they put on notice they:
“could incur significant civil penalties—up to $43,792 per violation—if they or their representatives make claims about money-making opportunities that run counter to prior FTC administrative cases.”
And quite a few companies in our industry are on the list.
Up to $43k per misleading copy claim could turn a single promo into a devastating loss for a small, unprepared company.
You can read the FTC notice here.
And you can see the full list of companies receiving the notice here.
When I saw the notice, I emailed Damon Wright, a lawyer with specializing in FTC issues from Gordon & Rees, a law firm with a lot of financial publishing experience.
He and I recorded this conversation about what this FTC notice means for trader educators and financial publishers.
Regulatory risk is a catastrophic risk.
Once again promos are coming down.
Traffic is stopping.
Just like the scare last year the FTC vs. Raging Bull – and particularly the aggressive use of their injunction powers – did what they hoped.
It terrified many publishers to stop all promotion until they did a full legal review. That’s kind of industry-wide behavioral change is part of why the FTC brings cases.
Earlier this year Martin Weiss and I spoke about how the FTC becoming more active in the industry is new.
Expect more actions.
One thing Damon and I discuss is how the FTC’s recent supreme court loss removed their traditional enforcement strategy.
Now they’re building a new framework and that opens up the possibility they will target smaller businesses next as they build up legal precedent in their new framework.
This kind of thing brings catastrophic risk to your business.
Listen to our conversation. Talk to your lawyers.
This is the time to make certain you’re business is operating in the regulatory environment we’re in – not the one you wish you were in.
Here is Damon’s presentation on legal issues in financial publishing from FMS 2021
You should also download the Gordon & Rees E-Commerce Retailer Guide.
There is a lot of very practical, very useful insight and advice in this guide.
One thing I like about Damon is that he will actually work with & train your marketing and copywriting team to understand how to promote.
He’s also understand you still need to convert or there is no business to protect.
So, he’s able to help you think through the best way to handle your existing promotional assets like testimonials.
I’m happy to make an introduction to anyone in the industry who needs it.
You can also reach out to Damon directly on LinkedIn.
If you need a legal team with experience in financial publishing, trader education, and internet marketing then connect with Damon on Linkedin.