The following is a guideline to identify issues to consider when creating your sales page and ensuring it complies with the rules and guidance issued by the Federal Trade Commission (the "FTC"). This is a guideline ONLY and is not all encompassing. However, these items are used by the JVZoo Compliance Team when reviewing and approving products added to the platform.
- General Rule for FTC Compliance
- At a high level, the FTC prohibits "unfair or deceptive acts." The specific rules and guidance issued by the FTC generally relate back to this core principle. If your sales page includes something which on its face appears deceptive or designed to mislead a consumer, then it is likely that your page is not in compliance with the FTC's rules and will not be approved by JVZoo.
- At a high level, the FTC prohibits "unfair or deceptive acts." The specific rules and guidance issued by the FTC generally relate back to this core principle. If your sales page includes something which on its face appears deceptive or designed to mislead a consumer, then it is likely that your page is not in compliance with the FTC's rules and will not be approved by JVZoo.
- Product and Earnings Claims, Substantiation, and Disclosures
- General Substantiation Requirement
- Every material claim your website makes about its product or service must be substantiated (backed up by actual evidence). Some claims are red flags with the FTC because they almost certainly cannot be substantiated. Examples include, but are not limited to, the following:
- Works 100% of the time.
- Guaranteed money.
- Lose substantial weight loss no matter what or how much you eat.
- Scientifically proven to do X.
- Substantial profits for all users.
- Similar claims that seem "too good to be true."
- Every material claim your website makes about its product or service must be substantiated (backed up by actual evidence). Some claims are red flags with the FTC because they almost certainly cannot be substantiated. Examples include, but are not limited to, the following:
- Substantiation for Specific Claims with Numbers.
- If your website makes a claim about its product or service that includes specific numbers (e.g., dollars earned, leads generated, weight loss, etc.), those claims are subject to additional requirements. Those claims must be substantiated with specific figures to prove that they are representative of what an "average customer" will generally achieve under the described circumstances. If the claim is not typical for the average consumer, the website must include a disclaimer with the generally expected performance under the described circumstances. A general disclaimer like "results may vary" is insufficient (e.g. Results not typical. Members following our program, on average, lose 1-2 lbs per week).
- Websites should not guarantee that users will obtain any level of earnings or other tangible results.
- General Substantiation Requirement
- Testimonials
- General Guidance for Testimonials
- Testimonials must be from actual people who used the actual product advertised and have agreed to let you use their photo and/or statement. If the endorser has been compensated in any way (i.e. paid money, given free product, etc.), that compensation should be disclosed. You should not materially edit the testimonials in order to alter the substance of the statement.
- Claims Made in Testimonials
- If a testimonial makes a specific claim about a product, the FTC interprets that claim as a claim made by the company. Therefore, those claims must be substantiated and disclosed as if they were contained on any other portion of the sales page.
- General Guidance for Testimonials
- Use of the Word "Free" or Similar Language
- If the word "Free" is used without any qualification, the product must in fact be completely free. If there are any terms or conditions placed on the consumer's retention of the "free" item, those conditions must be clearly disclosed from the outset of the offer. Footnotes or asterisks are insufficient to contain those limitations.
- If the word "Free" is used without any qualification, the product must in fact be completely free. If there are any terms or conditions placed on the consumer's retention of the "free" item, those conditions must be clearly disclosed from the outset of the offer. Footnotes or asterisks are insufficient to contain those limitations.
- 100% Satisfaction Guaranteed
- If your website uses any terms suggesting the product or services are "100% guaranteed," you must place any material limitations on that guarantee near the guarantee. If no limitations are disclosed, you must be willing to refund 100% of the purchase price and shipping cost for any reason for any period of time. If there is other conflicting refund information contained on the page, then a consumer may be misled by the use of the term "100% guaranteed" unless the relevant limitations are placed near the claim.
- If your website uses any terms suggesting the product or services are "100% guaranteed," you must place any material limitations on that guarantee near the guarantee. If no limitations are disclosed, you must be willing to refund 100% of the purchase price and shipping cost for any reason for any period of time. If there is other conflicting refund information contained on the page, then a consumer may be misled by the use of the term "100% guaranteed" unless the relevant limitations are placed near the claim.
- Business Opportunities
- The FTC imposes strict requirements on offers that constitute "business opportunities" as defined by the FTC. At its core, if you offer a "business opportunity" when you charge the consumer a price, the consumer enters into a new business, and you help the consumer set up or run the business. If you offer a "business opportunity" you must provide the consumer with a specific disclosure form at least seven days before the consumer pays any money for the business opportunity.
- Certain business opportunities are also regulated by the Securities and Exchange Commission (the “SEC”) and include purchases where the consumer is led to believe that they will receive profits from the efforts of others. Those are considered investments and are subject to strict requirements which are not covered in this Guideline. You will need to refer to the SEC for more information on these requirements.
- The FTC generally infers the sale of a "business opportunity" from the following terms (and derivatives of these terms) and should be avoided. Such terms include the following:
- Business in a box
- Profits on autopilot
- Passive royalties
- Make money in your sleep
- Pricing Consistency
- Sales pages should not contain conflicting prices. The price on the sales page should match the price charged when the consumer clicks the purchase button.
- If a price markdown is used ($39.99 marked down to $9.99), the prior price must have been actually offered and not used as merely a marketing tactic.
- Value of bonus items. The value of free or bonus items should be based on reasonable prices at which those items have been offered for sale.
- Scarcity and Timers
- If your website uses a countdown timer which is tied to a launch price, price discount, coupon code or other incentive, then you must actually do something upon the timer's expiration or upon the end of the launch date. Either the discount must expire or, at the least, the user must begin the sales funnel again and re-enter their information. Timers that are at zero, but have not actually changed anything, are misleading.
- Similar threats of scarcity (only 3 offers left) are similarly deceptive if they are static and clearly not tied to any actual scarcity of the product.
- Refund Policy
- Your representations regarding your refund policy must be consistent on your main page, your disclosures or terms of service (if any), and on the JVZoo order page.
- If you represent you offer a full refund and do not disclose any limitation on that refund policy near the representation, you must abide by your full refund promise.
- Advertorials
- Websites should not be designed to appear as though they are objective news articles or objective review websites if they are actually sales advertisements. It is deceptive for an advertiser to make an advertisement appear objective when it is not actually an independent source of information.
- Websites should not be designed to appear as though they are objective news articles or objective review websites if they are actually sales advertisements. It is deceptive for an advertiser to make an advertisement appear objective when it is not actually an independent source of information.
- Exit Pop-Ups
- JVZoo generally prefers that websites not use a pop-up when a user tries to exit the website. However, if your website does utilize an exit pop-up, the pop-up must clearly and conspicuously show the user where to click to exit the pop-up and website in a single click. The pop-up should also have an X in the corner to allow the user another way to exit the pop-up and website.
- JVZoo generally prefers that websites not use a pop-up when a user tries to exit the website. However, if your website does utilize an exit pop-up, the pop-up must clearly and conspicuously show the user where to click to exit the pop-up and website in a single click. The pop-up should also have an X in the corner to allow the user another way to exit the pop-up and website.
- Privacy Policies
- JVZoo recommends that websites have clearly posted privacy policies whenever they collect user information.
- JVZoo recommends that websites have clearly posted privacy policies whenever they collect user information.
- Security Representations
- Websites should avoid broad representations that state their website or sales pages are "100% secure." Even the most secure servers are rarely "100% secure" from hackers or errors.
- Websites should avoid broad representations that state their website or sales pages are "100% secure." Even the most secure servers are rarely "100% secure" from hackers or errors.
- Celebrities
- Websites should not imply that a particular celebrity endorses your product unless that celebrity has entered into an express agreement with you to do so. Past use of a product or discussion of a product on a television show is not necessarily the same as endorsing the product. Naming specific celebrities is also likely to attract scrutiny from their attorneys or representatives.
- Websites should not imply that a particular celebrity endorses your product unless that celebrity has entered into an express agreement with you to do so. Past use of a product or discussion of a product on a television show is not necessarily the same as endorsing the product. Naming specific celebrities is also likely to attract scrutiny from their attorneys or representatives.
- Free Trials
- If any free trials are offered, the terms of any such trial offer must be disclosed before collecting any billing information.
- If any free trials are offered, the terms of any such trial offer must be disclosed before collecting any billing information.
- Copyright
- The use of photos or other content created and owned by other parties could violate the owner's copyright in the content unless a license has been granted.