A Complete Internet Marketer’s Compliance Guide
Eric S. Crusius, Esq.
May 18, 2015 | Performance Marketing Summit
Agenda
No More Lawsuits Not asking for help Online Reputation
Misleading Advertising Open social media accounts Rogue Employees Explain Free Trials
Labor Law Adwords Win with contracts Spamming Unflattering websites Incorporate Trademarks and Copyrights State Regulations
May 13, 2015 2
Agenda
Not Asking for Help
• Your colleagues are always willing to help
• Most attorneys will talk with you for free (only some of us bite)
May 13, 2015 3
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Online Reputation
• Yelp! And Rip Off Report allow anonymous reviews
• Strong SEO
• Difficult to remove • Yelp! Doesn’t easily give up information
• ROR requires corporate governance program
May 13, 2015 4
Agenda
Misleading Advertising• Deceptive formats (fake news sites)
• False Endorsements
• Unsubstantiated Claims
• FTC and State AGs Care
• Networks can be liable for affiliate marketer
• Affiliates should make sure content is accurate
• Look out for COPPA requirements
May 13, 2015 5
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Open Social Media Accounts• Corporate and personal name
• Populate
• SEO buffer
May 13, 2015 6
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Rogue Employees• Employees (or contractors) can steal IP
(especially trade secrets), sabotage businesses, and even hijack domain names and websites
• Vet employees closely
• Have them sign NDAs and maybe non-competes (if legal)
May 13, 2015 7
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Explain Free Trials• State AGs and FTC love to go after free trials
• Ensure they are free and/or return policy is clear (fine print may not be enough)
• Offer refunds if someone complains
May 13, 2015 8
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Labor Laws• If you have employees, may have pay and
benefit requirements
• Fair Labor Standards Act
• 1099s or Employees?
• Some states have specific laws regarding sick time and minimum wages (for instance)
May 13, 2015 9
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AdWords• Cases in flux: what can you do?
• Cannot use copyrighted copy
• Can maybe use trademark as keyword but generally cannot put it in the ad itself
May 13, 2015 10
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Win With Contracts• Contracts protect parties from each other
• Networks need to get indemnification
• Website contracts
• Contracts with merchants/networks/affiliates describe permitted activities
May 13, 2015 11
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Spamming• Follow CAN-SPAM – easy to do
• Accurate subject lines
• Ability to opt out
• Contact information
May 13, 2015 12
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Unflattering Websites• Sometimes dedicated website are set up to exact
revenge or a business advantage
• Ignore (Babs Effect) or Bring John Doe Lawsuit
• Subpoena host and/or website builder
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Incorporate• Do it first. Do it now. Don’t look back.
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Trademarks and Copyrights• Figure what you can do with merchant’s IP. IP
lawsuits are expen$ive
• Copying and pasting pictures or text is a violation of the Copyright Act
• Everything is copyrighted no matter filed with copyright office
• Some common law trademarks entitled to protection
May 13, 2015 15
Agenda
State Regulations• State advertising and labor laws vary
• Stay aware because someone will
• 50 states and 50 problems (for instance, nearly every state has a breach notification law)
• Look out for state sales taxes
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