3 Penalties for Not Using Disclaimers Online
If you're making affiliate income, first of all congratulations.
But second of all, I want to make sure you don't get into any legal hot water. Read through to the end and I will tell you what a good disclaimer looks like and when you actually need a disclaimer.
Let's talk about three major punishments that you might suffer for not using affiliate disclaimers where required.
First: Stress and Inconvenience
So first is obvious. It's just kind of a stress and inconvenience. The FTC can bring legal action against anyone that violates their guidelines, which can result in expensive legal fees, court costs, also a ton of stress, inconvenience and damage to your nervous system.
Second: Reputational Damage And Lost Business Opportunities From Not Using A Disclaimer
The second consequence is reputational damage. France and the UK have started to compile back lists of individuals, companies, influencers who don't comply with disclosure rules. I don't have a crystal ball, but I feel like something similar might be coming to the US. And having your name on a blacklist is not good for business, obviously.
Think of it from a company's perspective, from a brand's perspective. You could be opening yourself up as a company to a lot of legal liability if you work with an influencer who's already been shown to be not complying with the rules. What if he or she has a habit of non compliance?
Third: Financial Consequences of Not Using Disclaimers on Affiliate and Sponsored Posts
Finally, monetary. The FTC can impose fines of up to 43,000 dollars per violation for not complying with their disclosure guidelines.
And of course with all of this, there will be loss of income; income from the affiliate relationships or influencer partnerships. The fine plus the reputational damage, plus maybe ending a contract early because of this infraction results in lost income and a lot of lost money from your pockets.
So what does a good disclaimer look like?
Well, a good disclaimer is clear and conspicuous. That means it is not vague or ambiguous. #spon is not a good one. It's pretty vague, and it's not hidden.
The disclaimer must be obvious — not teeny, tiny. It should not be below the fold, or after the “more” or the “…” on a caption. It's clear. Tt's conspicuous. It's right there, it's hard to miss.
When do you need a disclaimer?
You need a disclaimer when there's a material connection between you and the product or service that you're talking about. So if you're an affiliate, if you have stock or some kind of other interest in the company, if you have a family relationship with a company, or if you're getting something for free in order to talk about it… those are all material connections. And, yeah, you need a disclaimer.
I hope that helps you understand the penalties for not using disclaimers when you need to. (And what a good disclaimer is and when you need one!)