Ralph Fucetola JD has developed formats for an up-to-date Privacy, Terms & Site Use Statements covering important legal issues, such as:

Terms, Conditions and Disclaimers, Warranties, Release of Statements and Testimonials, Trademarks, Service Marks and protected Intellectual Property, Copyright, third party materials, FDA and FTC disclaimers, Privacy Statement, Privacy Act, Security Statement, Opt-Out Choices.

Sites that sell goods and services... informational sites... adult sites... nonprofits... collectables...
web designers (Yes! You can offer your clients a "designed by lawyer" SUS!)

Specialized formats also available - Private Licenses, HIPAA Disclosure, etc.  Please email me with special requests, to:  ralph.fucetola@usa.net and put "SUS" in the subject line -- I'll get back to you with an estimate.

(My secure Pay Pal account can accept credit or debit cards, or electronic checks and is set up to accept individual hour reservations of legal services).

The minimum reservation of time is 2 Hours @ my current special Internet Hourly Rate, as set out on my Payments page, as modified from time to time.

If you just have a preliminary question, I do not charge to email brief responses to potential legal service inquiries, just email me at ralph.fucetola@usa.net with SUS or IAM in the subject line.

Internet Affiliate Marketing and the FTC Proposed Business Op Rule

 The Comments period on the proposed Business Opportunity Rule has been extended to July 16, 2006, due to the interest in the issue expressed by public comments.  The Rule, in substantially its proposed format, is expected to be adopted this year.  The proposed Rule is at:

 http://www.ftc.gov/os/2006/04/R511993BusinessOpportunityRuleNoticeofProposedRulemaking.pdf

 The central language in the proposed Rule is the definition of a Business Opportunity:

 “(d) Business opportunity means a commercial arrangement in which:

(1) The seller solicits a prospective purchaser to enter into a new business;
(2) The prospective purchaser makes a payment or provides other consideration to the seller, directly or indirectly through a third party; and
(3) The seller, expressly or by implication, orally or in writing, either:
(i) Makes an earnings claim; or
(ii) Represents that the seller or one or more designated persons will provide the purchaser with business assistance.”

 If the business  relationship is a Business Opportunity, the following applies:

 “The proposed Rule would address these practices by requiring five affirmative disclosures.  The first affirmative disclosure would require a business opportunity seller to state whether the seller chooses to make earnings claims. If the seller does, then the proposed Rule would require substantiation and additional disclosures. The other four affirmative disclosures pertain to certain prior litigation; the seller’s cancellation or refund policies; statistics on cancellation and refund requests; and contact information for prior purchasers as references.

In addition to these disclosure requirements, the proposed Rule would prohibit common deceptive business opportunity sales practices. Among other things, business opportunity sellers would be prohibited from misrepresenting: (1) Earnings; (2) costs or the efficacy, nature, or central characteristics of the business opportunity or the goods or services sold to the purchaser as part of the business opportunity; (3) cancellation or refund policies; (4) promised assistance; (5) the calculation and distribution of commissions, bonuses, incentives, premiums, or other payments from the seller; (6) the likelihood of finding locations for equipment or accounts for services; (7) a business opportunity as an offer of employment; (8) territorial exclusivity or more limited territorial protections; (9) endorsements; and (10) shills as references. Finally, the proposed Rule would prohibit business opportunity sellers from failing to make promised refunds, as well as assigning ‘‘to any purchaser a purported exclusive territory that, in fact, encompasses the same or overlapping areas already assigned to another purchaser.’’

 While the Rule is obviously intended to apply to MLM marketing as well as franchises, will it also be applied to Internet Affiliate Marketing, or will IAM become even more beneficial as the Internet continues to grow and other opportunities are mired in red tape.

 Clearly many MLMs operate on the Internet and an MLM member “makes a payment or provides other consideration” for the business opportunity, where the MLM operator offer assistance or makes earnings claims.

Those who want to sell through others on the Internet must now avoid the MLM regulatory trap and embrace the most advanced IAM approaches.  The keys are limiting the operator’s exposure under the defined terms of the proposed rule and providing sufficient disclosures and disclaimers to avoid the erroneous impression that you are involved in a regulated Business Opportunity.  The Site Use Statement web site at www.siteusestatement.com has further information regarding how On-line Marketers can prepare to comply with the expected Rule requirements. Or email me:  Ralph Fucetola JD - Ralph.Fucetola@usa.net  - and put IAM in the subject line

 IAM is preparing for business beyond the singularity the World Wide Web Internet represents - RU?

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DISCLAIMER

My SUS service does not include legal review of your site.  I do not guarantee that your content will not elicit regulatory action.  My service is only to provide a customized standard Site Use Statement that meets current FTC (and where appropriate, FDA) requirements and generally meets industry standard.  Other services require separate retainer agreements.  I am available for consultation regarding the FTC and IAM.

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