I recently launched The Legalzine – a monthly digital magazine designed to make legal compliance accessible, actionable, and fun for online entrepreneurs, coaches, and creative business owners – and when I was designing the magazine, I had one goal in mind: make the legal part of business SIMPLE and EASY to understand!
Oftentimes in business, we are firehosed with information and education and while the people giving us all of this stuff mean well, it can be extremely overwhelming and almost impossible to actually implement amidst everything else we have going on.
That’s why I decided that I was going to do LESS. Instead of offering a ton of insight all at once, I wanted to take things one step at a time so you have a chance to truly digest what you’re learning, actually understand it, and most importantly take action on what you’ve learned.
Here’s what that looks like in action – easy issue of The Legalzine includes:
- A comprehensive article breaking down that month’s topic
- Premium templates, checklists, and/or swipe copy you can use immediately (when I say immediate action, I really do mean it!)
- The Mini-Course – a video training + written summary on a key aspect of the topic
- Interactive quizzes to build and test your knowledge and challenges to help you implement (I know I can’t be the only one who loved magazine quizzes as a teen?!)
- Legal Horoscopes tailored compliance tips for various niches (because again, we’re having FUN!)
- Expert insights shared by featured guests who are industry leaders in their niche
- A roundup of curated resources and tools to support your legal journey
Every month features a different topic and in October (the debut of the magazine), we’re focusing on FTC Compliant Marketing!
And I didn’t just choose that topic by random.
FTC compliance is something that I see being ignored more and more in the online business world and to be totally honest, it makes me absolutely CRINGE every time I see it happen.
The problem, however, is that many business owners aren’t aware that they’re doing anything wrong. Many of them are just doing what they see other business owners do, so it doesn’t seem like much of an issue.
So that’s why I decided to make the debut issue of The Legalzine all about this problem that’s becoming more and more prevalent so that YOU can correct it (or avoid it!) and go about business in a more legal sound way.
I save my best info and education for The Legalzine subscribers (along with support on how to take action!), but here’s a glimpse into this topic in case you’re curious.
What Is The FTC?
First things first, let’s make sure we’re on the same page!
The FTC stands for the Federal Trade Commission and they’re the big guys that monitor how businesses are selling products or services and earning money.
Essentially, they’re in charge of making sure that you’re conducting business in a legally sound way and TRUST, they take their job veryyyyy seriously.
The FTC are the people that are constantly implementing new rules and regulations that business owners are required to follow, with some of the most recent notable rules being the new “click to cancel” requirement and the non-compete ban.
In addition to these rules, they’re constantly looking at businesses to make sure they’re doing things in an FTC compliant manner. And where the issue arises a LOT is in the way that businesses choose to market.
5 Common FTC Compliance Mistakes in Marketing
When it comes to marketing, there are quite a few tactics and strategies out there that are frequently taught that actually go against FTC guidelines. In fact, there’s a chance that YOU are currently using them in your own business without even realizing it.
The good news is that most of these are an easy fix! Keep reading for the common problems and their solutions.
False Claims of Product Effectiveness
We’ve all seen testimonials or reviews online for a product or service and wondered if they were legit, right? If you’ve ever had to question it, it’s because your gut is telling you something and for good reason.
PROBLEM: Making exaggerated or unsupported claims about your product’s effectiveness can land you in serious trouble with the FTC.
EXAMPLE: Stating that your skincare product will “erase wrinkles overnight” without scientific backing is a clear violation. The FTC expects that any claims made about the benefits or results of your product must be backed by credible evidence.
SOLUTION: Always base your marketing claims on solid, verifiable facts. If you’re promoting a product, make sure you have credible research, studies, or testimonials to support the effectiveness of what you’re advertising.
Hidden Fees and Charges
You know that annoying feeling when you see a super great deal online and excitedly “add to cart” just to find out there’s actually way more fees associated with the sale than you were aware of?
Yeah, not cool. And not FTC compliant. 👎🏼
PROBLEM: Failing to disclose hidden fees, charges, or subscription terms clearly and conspicuously in the sales copy can mislead consumers about the true cost of a product or service and goes against the guidelines.
EXAMPLE: Advertising a subscription service at a low monthly rate but not disclosing expensive shipping, handling, or processing fees until checkout violates FTC rules on transparency.
SOLUTION: Clearly list all costs associated with a purchase, including additional fees, upfront. Make sure these charges are visible and easy to understand before the customer completes their transaction. A good rule of thumb is to ensure all pricing information is prominently displayed on your website or sales page so customers aren’t caught off guard.
Bait-and-Switch Tactics
Ah, the trusty bait and switch marketing strategy is not so trusty in the eyes of the FTC! 🙈
PROBLEM: Advertising a product or service at a low price to attract customers, only to switch them to a more expensive option once they express interest, without clear disclosure of the change is not a game you want to be playing.
EXAMPLE: Offering a deal on a popular product, only to claim it’s “out of stock” and push a higher-priced alternative, is considered deceptive under FTC rules.
SOLUTION: Avoid advertising products that aren’t available or deals you can’t fulfill and instead, ensure your ads accurately reflect what’s in stock and available for purchase. If you’re running a limited-time offer, make sure your audience is aware of the quantity limits or deadlines to avoid any confusion. Not only is transparency in inventory and promotional details a requirement with the FTC, it also builds trust with your customers so that they can feel confident in purchasing from you.
False Scarcity
Say it with me: LYING is not a marketing tactic. 🙅🏼♀️
This one has become increasingly popular in the online marketing world and is actually something I see being taught all. the. time.
PROBLEM: Creating a false sense of urgency or scarcity, such as claiming that there are only a few items left in stock or only a few spots left in your course, when that’s really not the case is not the move. Not only is it ethically wrong, it’s quite literally illegal. The FTC views this as manipulative and a tactic to pressure customers into making hasty decisions, which can lead to consumer complaints and legal action.
EXAMPLE: Displaying a false product number or countdown timer on your website for a certain product or offer when in reality the inventory is plentiful and the countdown timer doesn’t ever actually run out.
SOLUTION: Instead of pretending that your offer is scarce, simply be honest about your inventory and time-sensitive offers. If you’re running a promotion with limited quantities, provide accurate numbers. For time-based offers, clearly state when the sale ends and stick to it.
Misleading Testimonials
Lastly, and yet another super common tactic, is displaying testimonials that aren’t real, have been fabricated or are completely misleading to your audience.
PROBLEM: Doing so misrepresents the experiences or opinions of individuals who have not used the product or service being advertised and can lead to someone making a purchase based on false information. Additionally, paying for or incentivizing reviews without disclosing the compensation violates FTC guidelines on transparency.
EXAMPLE: A wellness company claims that their product helps people “lose 20 pounds in just 2 weeks,” but in reality the customer never achieved these results or WORSE, never actually used the product in the first place.
We unfortunately see this one happen a lot with influencers who were paid to promote products even though they don’t actually use the products themselves.
SOLUTION: Ensure that all testimonials you use are genuine and reflect the true experience of your customers. If someone has been compensated for their review, or given free products in exchange, disclose that information clearly.
Regardless of how common these marketing tactics may be, if you really want to protect yourself and your business, you want to avoid ALL of these.
And that’s exactly what I’m helping you do inside The Legalzine!
You deserve to confidently run a stable, comfortable, scalable business without potential legal fires in the background threatening to burn it all down!
With The Legalzine, you can gain that legal confidence AND have actual support along the way (without having to dish out a retainer fee).
With just as little as $45/month, you can trust that the legal side of your business is taken care of!
Your subscription options include:
- Monthly Subscription ($40/month)
- Quarterly Subscription ($96/quarter – that’s $32/month + 1 month free per year!)
- Yearly Subscription ($288/year – that’s $29/month + 2 months free per year!)
CLICK HERE to choose the option that works best for you!
P.S. Looking for more legal resources to help you stay off the FTC’s radar? Check these out:
⭐️ How to Write FTC Compliant Sales Copy
⭐️ The Risk Of Using Monetary Numbers To Sell Your Offers (And How To Do It Legally)
⭐️ 5 Innocent Business Mistakes That Aren’t So Innocent in the Legal World
