By Linda L. Goodman, Esq.
Recently, an e-mail marketer and its owners paid over $621,000.00 to settle a Federal Trade Commission Complaint that charged the Defendants and their affiliates with practices that violated federal laws.
The settlement included an injunction preventing the company and its affiliates from future violations of the CAN-SPAM Act and requires the marketers to monitor their affiliates to assure they are complying with federal laws as well. Federal Trade Commission v. Global Net Solutions, Inc. et.al., United States District Court, District of Nevada, DVS050002PMP (LRL).
This well published case answered the long over due question of whether a marketer is responsible for the acts of its affiliates, with a resounding yes.
The best practice to assure affiliates will not run a marketer out of business is to closely monitor the affiliates for compliance. Affiliate monitor requirements should be initiated at the beginning of the relationship.
A marketer should require the full identification information from the affiliate including a physical address as well as the names of the principals of the company, and keep this information on file. The reputation of the affiliate should be checked and double checked within the industry.
All contractual agreements between the marketer and affiliate should require a certificate of compliance with the CAN-SPAM Act. The affiliate should be prepared to reveal all opt-in information upon request including and the manner and method by which the e-mail address was obtained.
Continued at http://affiliatetip.com/news/article00427.php