Are YOU in Compliance with the FTC?

Nearly everyone has probably heard about the Federal Trade Commission (FTC) in the USA cracking down on Internet businesses. This is probably NOT a country specific problem. I believe most countries have some kind of comparable agency. If it can happen here, it's only a matter of time until it happens everywhere. Assuming it hasn't already happened in some other countries.

Unfortunately, I'm not qualified to help those outside the USA on country specific business practices. But, I would imagine they all at least require ethical behavior.

I used to believe we could regulate ourselves on the Internet. As time passed, I changed my mind. After several years of investigating and reporting all kinds of scams, it seemed an impossible feat.

Now, the government HAS stepped in with the Federal Trade Commission (FTC) going on the warpath over a number of things, including truth in advertising. Their influence is even spread outside the USA. This is SERIOUS and they aren't fooling around!

Self-regulation would have required all online business owners to conduct their businesses in the MOST professional manner. We've done things online in such a slip-shod fashion as to leave ourselves vulnerable to all kinds of dangerous (to our businesses) situations - including any frivolous lawsuit some bozo wants to file.

I've always said - we MUST conduct business online the same way we would if we owned a brick and mortar company. Some of that includes certain contractual legalities. Yet, most online microbusiness owners can't afford the attorney's fees it would require to have these contracts written.

Now, Here's the Question!

Do YOU need to be afraid of the FTC? A terrific product came out last week and their sales letter says you do. It raised a lot of dust. In fact, I watched people going off half-cocked, and saw some absolutely idiotic things written about it.

The answer is ... Yes, you damn well DO need to be afraid IF you are operating in the USA, and IF you are NOT in compliance with FTC rules! Why the hell is this so hard to understand? We have LAWS here and ALL business owners are expected to follow them – whether operating online, or off.

I've NEVER been able to understand why some people think that having an online business grants them immunity from the LAW. Yet, I see it constantly. Now, I see people getting hysterical because they say they "can't afford" to comply!

Well, excuse me, I don't mean to be cold-hearted, BUT if people can't afford to BE in business for themselves, they need to go out and get a job! It's only a matter of time before that happens anyway.

Yes! The Internet IS a wonderful place for people to get into business for themselves at lower costs than they would face with a brick and mortar business. BUT – that does NOT mean they won't have ANY expenses! And, one of the FIRST expenses should be to set things up LEGALLY. It's a matter of priorities, and our FIRST priority should be to STAY in business!

If you went to your bank and got a loan to set up an off-line business, the first thing the bank would do is REQUIRE you to operate legally – with all the proper legal documentation. Why? To protect their investment! So, WHY won't people protect their own investments of both time and money?

Nobody ever said, "Here's the Internet, go out and do whatever you please with no regard for the law or ethical business practices!"

This is basically what iCop has always been about. People have complained to me because I required a full and formal privacy statement to be on the web site of every iCop member. And that's just ONE legal document, one I even give out a link to a template to use!

I hate to admit it, but I had loosened up on that requirement since we've launched the "new" iCop. That was a mistake! After reading what I'm about to show you, we WILL be going back to that requirement for FULL and FORMAL Privacy Statements.

In fact, effective immediately, NO U.S. company will be allowed to use the iCop seal who is not in FULL compliance with the FTC. And yes, I probably need to do some work on iCop too. But, it WILL be done!

Anybody too lazy to do it isn't serious enough about his/her business to BE an iCop member! We are here to train. We are here to help people stay OUT of trouble not help them get into it.

Okay – below is a link that will get you in compliance with the FTC. Yes, it's for the USA. But, I suspect that following it in any country would cover you fairly well. OR, you can find your own country's regulatory agency and read their requirements. I'm fairly sure they are all online by now.

Click here for compliance site.

PLEASE – read it and USE it! If you don't, you'd better be afraid - VERY afraid. Because, YOU are breaking the LAW! Want to take a chance on not getting caught and shut down?

jl scott, ph.d., Author Copyright © 2003, All Rights Reserved

A copy of this article is available at: compliance@i-Cop.org

This article may be reprinted with permission by including the following resource box:

------------
dr. jl scott is the Founder of the International Council of Online Professionals (iCop™) - and also the publisher of the Internet Marketing Trade Journal™ - the ezine that keeps you up to date on Internet marketing coming of age. Click Here for your subscription.