Online Affiliate Marketing ASA CAP

Online Affiliate Marketing

Note: This advice was made by the CAP Executive Department for advertising other than broadcasting. Not a legal advice. It does not detain the CAP, CAP Advisory Committee, and Advertising Standards Bureau.

Affiliate Marketing is a type of performanc e-type marketing, and is usually paid by companies for each acquisition of new customers through affiliate marketing activities (usually measured by "clic k-through" or sales). , A certain percentage of each sales has been agreed in advance as a commission. Affiliates post ads and links online to guide consumers to corporate websites online. This includes a link that can be obtained directly through bran d-owned affiliate programs such as "Amazon Associates", and links obtained through affiliate networks such as "AWIN", "Skimlinks", and "LTK". Like. Affiliates are effectively played as a secondary advertiser in order to get rewards in proportion to the interest in the product.

Even if advertising is created only by affiliates and there is no input from the business operator, both businesses and affiliate marketing representatives will be responsible under the CAP code.

Remember that CAP code is applied to affiliate marketing.
Confirm that affiliate marketing is clearly identified.
Be careful about the content
Infographic

Remember that the CAP Code applies to affiliate marketing

When an individual or company registers with an affiliate scheme of another brand, it will sign a contract to advertise the brand's product in exchange for rewards. Affiliate receives rewards in proportion to the number of clicks and purchases generated by the brand or product, and the number of clicks and purchases that belong to each "affiliate advertiser" are unique discount codes and URLs. Is counted using. After registering as an affiliate advertiser, these mentions are referred to as their own websites or social media, these mentions are "directly related to products, services, opportunities, gifts, and relocation." (Cap code range, I. H.). As a result, the CAP code will be fully applied. Note: This advice was provided by the CAP executive department for advertising other than broadcasting. Not a legal advice. It does not detain the CAP, CAP Advisory Committee, and Advertising Standards Bureau.

Even if advertising is created only by affiliates and there is no input from the business operator, both businesses and affiliate marketing representatives will be responsible under the CAP code.

Remember that CAP code is applied to affiliate marketing.

Confirm that affiliate marketing is clearly identified.

Be careful about the content

Make sure affiliate marketing is obviously identifiable

Infographic

When an individual or company registers with an affiliate scheme of another brand, it will sign a contract to advertise the brand's product in exchange for rewards. Affiliate receives rewards in proportion to the number of clicks and purchases generated by the brand or product, and the number of clicks and purchases that belong to each "affiliate advertiser" are unique discount codes and URLs. Is counted using. After registering as an affiliate advertiser, these mentions are referred to as their own websites or social media, these mentions are "directly related to products, services, opportunities, gifts, and relocation." (Cap code range, I. H.). As a result, the CAP code will be fully applied. Note: This advice was made by the CAP executive department for advertising other than broadcasting. Not a legal advice. It does not detain the CAP, CAP Advisory Committee, and Advertising Standards Bureau.

Affiliate Marketing is a type of performanc e-type marketing, and is usually paid by companies for each acquisition of new customers through affiliate marketing activities (usually measured by "clic k-through" or sales). , A certain percentage of each sales has been agreed in advance as a commission. Affiliates will post ads and links online that guide consumers to corporate websites online. This includes a link that can be obtained directly through bran d-owned affiliate programs such as "Amazon Associates", and links obtained through affiliate networks such as "AWIN", "Skimlinks", and "LTK". Like. Affiliates are effectively played as a secondary advertiser in order to get rewards in proportion to the interest in the product.

Blogs and news sites

Even if advertising is created only by affiliates and there is no input from the business operator, both businesses and affiliate marketing representatives will be responsible under the CAP code.

Remember that CAP code is applied to affiliate marketing.

Confirm that affiliate marketing is clearly identified.

Be careful about the content

Infographic

When an individual or company registers with an affiliate scheme of another brand, it will sign a contract to advertise the brand's product in exchange for rewards. Affiliate receives rewards in proportion to the number of clicks and purchases generated by the brand or product, and the number of clicks and purchases that belong to each "affiliate advertiser" are unique discount codes and URLs. Is counted using. After registering as an affiliate advertiser, these mentions are referred to as their own websites or social media, and these mentions are "directly related to products, services, opportunities, gifts, and relocation." (Cap code range, I. H.). As a result, the CAP code will be fully applied.

In some types of media, such as news articles, blog posts, and vlogs, the ASA may accept affiliate advertising content alongside purely editorial content. In such cases, the CAP Code applies only to the text that mentions the affiliate brand and its products, as well as any affiliate links, promotional codes, or other means by which new customers or sales can be attributed to a particular affiliate ( Matalan Retail Ltd in association with TL Blog Ltd, 30 October 2019). In contrast, if the entire content mentions the affiliate brand or its products, the Code applies to the entire content.

Vlogs

This distinction applies in principle to all media. However, in short media such as social media posts, the ASA is less likely to accept the separation of affiliate advertising from other content. For example, if an influencer's social media post depicts and mentions a brand with which the influencer has contracted as an affiliate advertiser, the CAP Code is likely to apply to the entire post.

The ASA may also consider social media posts to count as affiliate advertising if they were made in connection with an affiliate agreement, even if the posts themselves do not contain any attributable affiliate links or code. In one formal ruling, the ASA evaluated a series of Instagram Stories that showcased affiliate products and linked consumers to a landing page with an affiliate code (BPerfect Ltd, 21 July 2021). Although the Instagram Stories did not contain the affiliate code itself, the ASA found that they were affiliate advertising because of the influencer's commercial interest in consumers clicking through to the landing page and using the discount code.

ASA also determined that it would be counted as an affiliate advertisement because its intentions were commercially, even if a social media post was published outside the period of agreement with the affiliate brand (SportsWift LTD T/A Card Factory , May 6, 2020). One formal ruling believed that the ASA would also apply CAP code to the post of Tiktok, which contains expired affiliate discount code. The advertisement was published after the advertiser and affiliate contract was completed, and as a result, affiliates did not end up fees for sales generated by the use of code. However, ASA determined that Tiktok's post containing a discount code that affiliates had contracted based on the first commercial contract (JEMELLA, in ASSOCIATION WITH EMILY CANHAM, T, T. /a GHD, November 4, 2020).

ASA has decided on affiliate marketing in various forms, including email, banner advertising, i n-game advertisements, paid advertisements on Facebook, tweets, websites that look like edited content, and blog posts (Club) WebSite LTD, January 8, 2014; JC Inc T/A JustCloud. Com, March 27, 2013, Mobjizz LTD T/a ewank. com, June 10, 2015, Flamingo Intervest LTD T/a Ziinga. COM, February 27, 2013, Bet-aT-home. com Internet LTD, April 13, 2016, Slimtoneplus. com, December 19, 2012, Teepee Disco LTD T/A Playypennies, August 14, 2013 day).

Social media posts

Cap code rules 2. 1 stipulate that marketing communication must be clearly identified. In addition, the same norms must not make a false claim or implication in marketing communication that the seller is acting as a consumer or for its business, business, business, technology, or occupation. Marketing communication states that if it is not clear from the context, its commercial intentions must be revealed (rule 2. 3).

For example, banner ads, brand emails, "cashback" websites, websites specializing in advertising products and services. However, in social media, blogs, news sites, coupon sites, etc., it is clear that the author who posted content has a commercial relationship with a larger context and overall expression. It is not clear, but in all cases, especially if the individual is mainly a creator of no n-commercial content, or if the overall impression is maintained in editing independence. I have sex. In such a case, it is highly likely that additional information will be disclosed in some form so that affiliate content is clearly identified as marketing communication.

In the following recommendations, if it is not clear from the context, we will explain how to clearly identify affiliate marketing in various scenarios. These are not comprehensive or prescribed, and can be accepted as proposed approaches.

If the content is completely "directly" related to the supply of those products in connection with the product that is completely linked to affiliates, the commercial nature of the content should be clarified before consumer involvement. (ASSOCIATED NEWSPAPERS LTD T/A Mailonline, December 21, 2022; MONDELEZ UK LTD, November 26, 2014 day). The easiest way to do so is that if it is not clear from the context, it will be clear for those who are reading identifiers such as "advertising" in the title of blogs and articles before clicking content. It would be included.

Furthermore, although it is not a requirement for this norm, affiliate marketing staff can explain the essence of the company and the company by specifying that it receives a part of the sales through posting such as links and promotion codes. 。 For example, banner ads, brand e-mails, "cashback" websites, websites specializing in advertising products and services. However, in social media, blogs, news sites, coupon sites, etc., it is clear that the author who posted content has a commercial relationship with a larger context and overall expression. It is not clear, but in all cases, especially if the individual is mainly a creator of no n-commercial content, or if the overall impression is maintained in editing independence. I have sex. In such a case, it is highly likely that additional information will be disclosed in some form so that affiliate content is clearly identified as marketing communication.

Voucher sites

Furthermore, although it is not a requirement for this norm, affiliate marketing staff can explain the essence of the company and the company by specifying that it receives a part of the sales through posting such as links and promotion codes. 。 For example, banner ads, brand emails, "cashback" websites, websites specializing in advertising products and services. However, in social media, blogs, news sites, coupon sites, etc., it is clear that the author who posted content has a commercial relationship with a larger context and overall expression. It is not clear, but in all cases, especially if the individual is mainly a creator of no n-commercial content, or if the overall impression is maintained in editing independence. I have sex. In such a case, it is highly likely that additional information will be disclosed in some form so that affiliate content is clearly identified as marketing communication.

Take care with the content

Furthermore, although it is not a requirement for this norm, affiliate marketing staff can explain the essence of the company and the company by specifying that it will receive a part of the sales through posting such as links and promotion codes. 。

If only part of the link is affiliated product, and if/ or all content is not "directly related" to the supply of those products, general identifiers such as "advertisements" are the titles. It is unlikely to be necessary, but content related to affiliated products (and links itself) must be identified as an advertisement. If it is not clear from the context, it means that which links and related content are advertisements in each article will emphasize related content so that it will be revealed before the contract.

In some examples, putting an identifier like "(ad Alternatively, at the beginning of the content, the asterisks in the article and the same identifiers are related to "advertisements" (or / or relevant links, the author receives a part of the sales. It will also be acceptable to specify what is. At the end of such a post, providing such a dismissal clause for such properties may not be obviously an advertisement at the time the reader sees. Therefore, it is unlikely to be sufficient. Similarly, the general and outstanding disclaimer that indicates that the author receives a commission is not particularly acceptable if specific affiliate content is not emphasized.

More on

Some articles published on Mailonline's website and the "teaser" link from the corresponding homepage were fully focused on products linked to affiliates, so the whole is judged to be an advertisement. Ta. The article stated the exemptions at the top, but it was judged that this was inadequate. In particular, the expression "Affiliate fees may be obtained" can be paid, even if there is no management error in the affiliate arrangement, if you purchase via a link, you can receive fees. Suggests that it may not be received, and is because the ASA determined that it could be confused (associated Newspapers LTD T/A Mailonline, 21 Decementer 2022).

Affiliate Marketing Compliance: 4 Things You Need To Know

One fashion blog had a large number of affiliate links next to the special product, but this advertisement was not clearly displayed, so it was a violation of the rules (Matalan Retail (Matalan Retail). LTD in Association with TL Blog LTD, October 30, 2019).

Similarly, a violation was found in an article on the headline "Currys PC WORLD LAUNCHES ITS Incredible Black Friday 2018 DEALS with £ 600 OFF TVS" published on the Liverpool Echo paper website. Each product name in the article contains an affiliate hyperlink, and if sales occurred, Liverpool Echo would receive a commission. At the top of the article, on the headline, there was a banner with "in Association with Reach Solutions". There was a banner described as "Marketing Solutions designed to grow your business", but the ASA is interpreted as part of the architecture of the website, not the characteristics of the article. I thought. The ASA acknowledged that the banner could show that there was a financial agreement, but did not think that it was enough to identify the content that was an ad, and the content was completely edited. I did not think that it would cancel the impression (DSG Retail LTD & Amp; Reach PLC, 17 APRIL 2019). Like blogs and news sites, the blog content is completely "directly" in the supply of those products in connection with the product that is completely linked to the affiliate (usually linked to the description). In that case, the commercial nature of the content should be clarified before consumers are involved (Procter & Amble (Health & Amp; Beauty Care) LTD T/A Beauty Recommeded, May 27, 2015, Mondelez UK LTD , November 26, 2014). For example, if it is not clear from the context, it will be clear for those who are watching the content before the consumer clicks on the content and the thumbnails, such as "advertisement" in the thumbnail, before the consumer clicks on the content. Can be done.

Furthermore, although it is not a requirement for this norm, by specifying that it will receive a part of sales by including links and promotion codes in video descriptions and verbal, bloggers have a relationship between themselves and companies. You can also explain. Similarly, a violation was found in an article on the Headline "Currys PC World Launches Incredible Black Friday 2018 DEALS with £ 600 OFFS" published on the Liverpool Echo paper website. Each product name in the article contains an affiliate hyperlink, and if sales occurred, Liverpool Echo would receive a commission. At the top of the article, on the headline, there was a banner with "in Association with Reach Solutions". There was a banner described as "Marketing Solutions designed to grow your business", but the ASA is interpreted as part of the architecture of the website, not the characteristics of the article. I thought. The ASA acknowledged that the banner could show that there was a financial agreement, but did not think that it was enough to identify the content that was an ad, and the content was completely edited. I did not think that it would cancel the impression (DSG Retail LTD & Amp; Reach PLC, 17 APRIL 2019).
Like blogs and news sites, the blog content is completely "directly" in the supply of those products in connection with the product that is completely linked to the affiliate (usually linked to the description). In that case, the commercial nature of the content should be clarified before consumers are involved (Procter & Amble (Health & Amp; Beauty Care) LTD T/A Beauty Recommeded, May 27, 2015, Mondelez UK LTD , November 26, 2014). For example, if it is not clear from the context, it will be clear for those who are watching the content before the consumer clicks on the content and the thumbnails, such as "advertisement" in the thumbnail, before the consumer clicks on the content. Can be done.
Furthermore, although it is not a requirement for this norm, by specifying that it will receive a part of sales by including links and promotion codes in video descriptions and verbal, bloggers have a relationship between themselves and companies. You can also explain. Similarly, a violation was found in an article on the headline "Currys PC WORLD LAUNCHES ITS Incredible Black Friday 2018 DEALS with £ 600 OFF TVS" published on the Liverpool Echo paper website. Each product name in the article contains an affiliate hyperlink, and if sales occurred, Liverpool Echo would receive a commission. At the top of the article, on the headline, there was a banner with "in Association with Reach Solutions". There was a banner described as "Marketing Solutions designed to grow your business", but the ASA is interpreted as part of the architecture of the website, not the characteristics of the article. I thought. The ASA acknowledged that the banner could show that there was a financial agreement, but did not think that it was enough to identify the content that was an ad, and the content was completely edited. I did not think that it would cancel the impression (DSG Retail LTD & Amp; Reach PLC, 17 APRIL 2019).

Like blogs and news sites, the blog content is completely "directly" in the supply of those products in connection with the product that is completely linked to the affiliate (usually linked to the description). In that case, the commercial nature of the content should be clarified before consumers are involved (Procter & Amble (Health & Amp; Beauty Care) LTD T/A Beauty Recommeded, May 27, 2015, Mondelez UK LTD , November 26, 2014). For example, if it is not clear from the context, it will be clear for those who are watching the content before the consumer clicks on the content and the thumbnails, such as "advertisement" in the thumbnail, before the consumer clicks on the content. Can be done.

Furthermore, although it is not a requirement of this norm, the blogger has a relationship between himself and the company by specifying that it will receive a part of the sales by including links and promotion codes in the explanation and verbal video of the video. You can also explain.

If only some products are affiliate linked and/or not all content is "directly related" to the supply of those products, then a general identifier such as "Advertisement" in the title/thumbnail is unlikely to be required, but content related to the affiliate products (and links) should be clearly identifiable as advertising. If it's not clear from the context, this means making it clear that a particular link or related content is an advertisement before engagement by highlighting the related content. For example, by putting text or holding up a sign on the screen when talking about the related product (e. g. "Advertisement"), or by verbally explaining which parts of the content are "advertisements" (and/or that you receive a portion of sales through the affiliate links) before talking about the related product. Which products/links are advertisements should be similarly clear in the description.

In all cases, affiliate marketers should take care to ensure that their content is clearly identifiable to all consumers who come into contact with the material, and be mindful of any limitations or technical "quirks" of the platform they are using (e. g. limitations on what is visible and when in different contexts such as in-app vs. mobile).

Social media posts that include affiliate-linked products/services/brands, including posts by influencers, should be clearly identified as advertising up front (BPerfect Ltd in assoc. /w Charlotte Dawson, 21 July 2021).

If all products in a post are affiliate-linked and the post is published on a social media platform with no character limit, e. g. Facebook, it is likely that the post will need to include an identifier such as "Advertisement" at the beginning. Additionally, although not required, affiliate marketers may choose to state in the post that they will receive a percentage of sales made through the link.

1. Preserve your brand as a reputable affiliate.

An Instagram post by aliyahmariabee featuring an image of Aliya holding a pot of Coco Shine teeth whitening with the caption "Good morning I've been using this teeth whitening lately it's super affordable so check out @cocoshineau (40% off DISCOUNT CODE: ALIYAH40)" was found to be in breach of the terms of service. It was understood that Aliya would receive a commission for each sale where her discount code was used. The post differed from her usual posts in some ways and contained elements that indicated a possible commercial relationship, however the ASA found that the content and context of the post did not make it clear that it was an advertisement, as opposed to, for example, purely independent or sponsored editorial content (Coco Shine, 27 June 2018). In 2020, the ASA ruled that an Instagram Story containing a standalone label "*affiliate" was insufficient for the story to be recognised as an advertisement (Asos. com Ltd, 22 April 2020). The ASA found this insufficient not only because it was partially obscured by the "swipe up" button, but also because the term "affiliate" itself was not widely understood by consumers, as revealed by the ASA's labelling investigation. The ASA also ruled that the label "a d/affiliate" was insufficient due to the way "advertisement" was presented (with spaces between the letters) and that the label "#collab" was not clear enough.

On Twitter, due to limited space, labelling content with "#Ad" or a similar label is likely the clearest way to clearly identify it as an advertisement. Similarly, on Pinterest, where the amount of content managed by “pinners” is limited, and only a small portion is visible without clicking, it is likely that placing an “ad” or similar at the beginning of a free text “description” is permissible.

If only a part of the product in the article is linked to affiliate, and if all the content is not "directly" related to the supply of those products, which links and related content are advertisements. It is necessary to clarify. This can be performed in various ways, such as marking related links, such as "advertising". Alternatively, depending on the length of the post, at the beginning, the author receives a slight division from the sales of the asterisk and other equivalent identifiers, and / or through the related links. It will also be acceptable to specify that it is indicating. Disclaimers in such properties are not enough to be provided at the bottom of such a post. This is because links and claims "directly related" may not be clearly recognized as advertising when readers see. Similarly, the general and outstanding disclaimer that indicates that the author receives a commission is not particularly acceptable if specific affiliate content is not emphasized.

2. Prevent fraud from non-compliant affiliates.

In addition, restrictions on the platform and technical "habits" (for example, restrictions on the amount of display, and some social media sites cut texts placed after the hashtags and other characters other than other alphanumeric characters. ) It is necessary to keep in mind.

"Coupons", "free products", "Great information" promotion offer containing affiliate links can be clearly identified as advertisements if there is no other clear from the overall context or presentation. (Pepper Deals LTD T/A HotukDeals, 18 MARCH 2020).

If all presented promotion offer contains affiliate links, the entire website clarifies the nature of the content, simply without the "independent" website. You need to be misunderstood if you are collecting great information. This must be obvious for anyone visiting the website, and marketing staff must not rely only on the explanation of the "Company Profile", "Frequently Asked Questions" and "Terms of Use". If only a part of the product in the article is affiliate linked, or if/ or all content is not "directly" in the supply of those products, which link and related content It is necessary to clarify whether it is an ad. This can be performed in various ways, such as marking related links, such as "advertising". Alternatively, depending on the length of the post, at the beginning, the author receives a slight division from the sales of the asterisk and other equivalent identifiers, and / or through the related links. It will also be acceptable to specify that it is indicating. Disclaimers in such properties are not enough to be provided at the bottom of such a post. This is because links and claims "directly related" may not be clearly recognized as advertising when readers see. Similarly, the general and outstanding disclaimer that indicates that the author receives a commission is not particularly acceptable if specific affiliate content is not emphasized.

If all presented promotion offer contains affiliate links, the entire website clarifies the nature of the content, simply without the "independent" website. You need to be misunderstood if you are collecting great information. This must be obvious for anyone visiting the website, and marketing staff must not rely only on the explanation of the "Company Profile", "Frequently Asked Questions" and "Terms of Use". If only a part of the product in the article is linked to affiliate, and if all the content is not "directly" related to the supply of those products, which links and related content are advertisements. It is necessary to clarify. This can be performed in various ways, such as marking related links, such as "advertising". Alternatively, depending on the length of the post, at the beginning, the author receives a slight division from the sales of the asterisk and other equivalent identifiers, and / or through the related links. It will also be acceptable to specify that it is indicating. Disclaimers in such properties are not enough to be provided at the bottom of such a post. This is because links and claims "directly related" may not be clearly recognized as advertising when readers see. Similarly, the general and outstanding disclaimer that indicates that the author receives a commission is not particularly acceptable if specific affiliate content is not emphasized.

3. Mitigate regulatory and compliance risk.

If only some of the promotional offers presented contain affiliate links, it must be clear which offers and links are advertisements. Affiliate marketers are free to highlight this content however they like, as long as it is obvious, for example by placing a label such as "advertisement" in or around the title of the relevant offer (Pepper Deals Ltd t/a HotUKDeals, 18 March 2020).

It is important to remember that affiliate marketing falls within the scope of the CAP Code, so all the relevant rules apply to the content, in particular that it must not be seriously misleading or seriously or widely offensive.

Advertisers should also bear in mind that allowing affiliates to have discretion regarding the content of their advertisements does not relieve them from the responsibility to ensure that the advertisements comply with the CAP Code. The ASA has ruled that both merchants and affiliate marketers are liable under the Code, regardless of the fact that the advertisements may have been created solely by the affiliates and not by the merchants themselves (GTMC Inc, 31 July 2013; LifeStyle Advantage Ltd t/a Essence of Argan, 6 March 2013; JC Inc t/a justcloud. com, 27 March 2013).

Similarly, promotions made by affiliates who do not comply with the terms are problematic, as the primary responsibility for complying with the terms rests with the marketer (Flamingo Intervest Ltd t/a Ziinga. com, 27 February 2013).

Relying on affiliates to properly target advertising does not mean that the brand itself abdicates responsibility for the promotion of its products (WHG (International) Ltd t/a William Hill, 19 June 2019). An investigation was conducted following complaints about affiliate marketers mistakenly sending gambling ads to children. The brand argued that the affiliate marketers were liable for administrative errors that caused children to receive gambling advertising, but the ASA upheld the complaint and the brand was named in the judgment (Club Website Ltd, 8 January 2014).

4. Utilize tech tools to comply with regulatory laws.

Complaints, Testimonials & Testimonials

Final Thoughts

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B — Regulation S-AM: Limitations on Affiliate Marketing

Subpart B — Regulation S-AM: Limitations on Affiliate Marketing

January 26, 2023 9:30am EST Share on Facebook

248.101 — Purpose and scope.

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248.102 — Examples.

David Gasparyan is the founder and president of Phonexa, a turnkey marketing suite for calls, leads, clicks, emails, SMS, accounting and more.

248.103-248.119 — [Reserved]

248.120 — Definitions.

The demand for affiliate marketing is skyrocketing.

According to Influencer Marketing Hub's Affiliate Marketing Benchmark Report 2022, the industry is expected to grow from $13 billion in 2022 to $15. 7 billion in 2024.

Despite its widespread popularity, the affiliate marketing industry still faces various challenges and pain points, especially when it comes to regulatory compliance and consumer protection laws. As 2023 approaches, new regulatory laws and amendments to current regulations will come into effect, and affiliate marketers will need to ensure compliance to avoid being subject to harsh penalties.

As the founder and president of a company that provides a turnkey suite of automated performance marketing solutions, I have experience specializing in and working with a diverse range of marketers operating across various verticals in the affiliate marketing space.

From my perspective, here are some strategies affiliate marketers should consider to ensure regulatory compliance to protect their brands and businesses.

Compliance not only protects consumers, it also protects your brand and, ultimately, your reputation as an affiliate marketer.

As an affiliate network expands and acquires new partners to reach more consumers, it becomes difficult to keep track of all affiliates. In this competitive industry, it becomes even harder to track affiliate performance, as unethical and non-compliant behaviors may occur.

An effective way to ensure affiliates represent your brand in a consistent and transparent manner is to create and enforce a brand style guide that details the affiliate network's compliance policies. A brand style guide helps keep affiliates honest by outlining the actions and behaviors that are prohibited by the network's terms of service.

The deceptive techniques used by non-compliant affiliates not only put the reputation of the affiliate network at risk, but also defraud the network of fraudulently earned commissions.

Some of the unethical methods non-compliant affiliates use to increase their commissions include:

- URL hijacking: Redirecting traffic from one site to an affiliate's site.

- Cookie stuffing: "Stuffing" affiliate tracking cookies into users' browsers without their consent in order to earn click fraud commissions.

- Blatant misrepresentation: Misrepresenting a product or service in order to increase conversion rates.

- Click spam: Using bots to "invite" traffic, clicks, or signups.

Consider monitoring affiliate IP addresses to deter misconduct caused by compliance violations. By monitoring IP addresses, you can identify the suspicion and illegal methods that affiliates have adopted to promote sales and get higher commissions. Some affiliate marketing representatives may not distinguish between compliance risks and regulatory risks, but it is essential to understand these two differences.

Regulation risk refers to the possibility of changing laws and regulations. Since these changes cannot be controlled by themselves, regulation risks are often the case for business interruption and additional costs to fully comply with consumer protection laws and regulations.

The following are examples of regulation risks that can affect affiliate networks.

-2002 Survey Oxley method.

The management of regulation risks requires a realistic and foresight strategy that monitors changing regulatory requirements and maintains the latest status. Such an approach can be completely transparent to operate networks and help brand public opinion.

Compliance risks may violate the current laws and industry regulations, which can be caused by inappropriate management and default of the prescribed best practices.

To reduce the risk, you need to systematically perform the policy, procedure, and risk management of affiliate networks and thorough compliance. In particular, in 2023, new consumer privacy and regulations such as VCDPA (Virginia Consumer Data Protection Law), CTPA (Connecticut State Personal Data Privacy and online Monitoring Law), and CPA (Colorado Privacy Law) were enacted. It is most important to reduce compliance risks.

With the continuous evolution of technology, tools and platforms designed to guarantee complete compliance to the current regulatory law are evolving. Today, affiliates can use a compliance management system with a detection of compliance violations and rea l-time notifications to reduce compliance risks. By combining i n-house initiatives with the regulatory law with technology tools, affiliate networks can achieve complete compliance and avoid high penalties for violations.

Affiliate Marketing has benefited from both publishers and advertisers, as shown in the increase in US affiliate marketing spending from 2010 to 2022. Find an appropriate partner who will help you spread your brand to your customers and share your insights (or resources). The result will be fruitful for all stakeholders.

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74 FR 40431, Aug. 11, 2009, as long as there is no particular refusal.

(a) Purpose. The purpose of this su b-part is to implement Article 624 of the Fair Credit Reporting Act, 15 U. S. C. 1681, et Seq.) ("FCRA"). Article 624 shows the Fair and Accurate Credit Transactions Act of 2003, Public Law No. 108-159, 117Stat. 1952 (2003)) ("FACT Law" or "the same law") ) In Article 214, it is added to FCRA, and the use of consumer information received from an affiliated company to solicit marketing is restricted.

(B) Applicable range. This section is applied to the registered broker or no n-dealer brokers or dealers, investment companies, and investment advisors or securities agencies registered with the European Commission. In the main story, these entities are called "you".

The example of this su b-part is not exclusive. The example of the main part provides guidelines for applying rules in normal situations. However, depending on the facts and situations in individual situations, it is determined whether to follow the example in the applicable range will follow the main story. An example in the paragraph explains only the issues listed in the paragraph, and does not explain other issues that may occur under this su b-part. Similarly, the example does not show an example of the issues that occur under other laws or regulations.

When used in this su b-part, as follows:

(a) Investment advisors or securities agency related companies registered as brokers, dealers, investment companies, or European committees are investment advisors or securities agency registered as brokers, dealers, investment companies, or European committees. It means a person who is associated with a contractor and a common ownership or common control. Furthermore, investment advisors or securities agencies registered as brokers, dealers, investment companies, or European committees are regarded as corporat e-related companies for the purpose of this su b-part:

(1) The company shall be regulated by government regulation authorities other than the Committee, based on Article 214 of the FACT Law (Public Law No. 108-159, 117 Statistics No. 1952 (2003)).

(2) Based on Article 214 of the FACT Law, the rules adopted by other government regulatory authorities include a broker, dealer, investment company, or investment advisory company registered as a committee, and the company's association. Being treated as a company.

(b) The broker has the same meaning as Article 3 (A) (4) (15 U. S. C. 78c (A) (4)) of the 1934 Stock Exchange Act. "Broker" does not include brokers registered by the Committee notification based on Article 15 (B) (11) (15 U. S. C. 78O (B) (11)) of the 1934 Securities and Exchange Law.

(C) Clearly and noticeable means that it is designed rationally and is designed to alert the nature and importance of the provided information.

(D) The committee refers to the Securities and Exchange Commission.

(e) The company is a stock company, a limited liability company, a business trust, a joint name / agency, an incorporated association, or a similar organization.

(F) Simple- (1) Generally. (1) Generally, "concise" means rational simple expression or statement.

(2) Combination with other necessary disclosure. The notifications required in this section may be concise, even in combination with other disclosure, or permitted by the Federal Law or State Law.

(G) Consumers refer to individuals.

(H) The dominance of the company means the ability to exercise dominant influence on the management and policies of the company, regardless of the ownership of securities, contracts, or other. It is estimated that those who own more than 25%of the company voting rights securities are dominated by the company's voting rights. Those who do not own more than 25%of the company voting rights securities are estimated that they do not dominate the company. The estimation of control can be overturned by evidence, but in the case of an investment company, the procedure described in Article 2 (A) (9) (15 U. S. C. 80A-2 (A) (9)) in the 1940 Investment Company Law. In accordance with the committee until the committee makes the opposite decision.

(i) The dealer has the same meaning as Article 3 (A) (5) (15 U. S. C. 78c (A) (5)) of the 1934 Stock Exchange Law. The "dealer" does not include a dealer registered by notification to the committee based on Article 15 (B) (11) (15 U. S. C. 78O (B) (11)) of the 1934 Securities and Exchange Law.

(J) Available information refers to information that will be a consumer report if the exclusion from the definition of "consumer report" in Article 603 (2) (a) in FCRA is not applied. The qualification information does not include an account number, name, address, etc. that does not include personal identification information or blind data.

248.121 — Affiliate marketing opt out and exceptions.

(K) What is FCRA? (15 U. S. C. 1681, et Seq.)

(L) GLBA is the Gram Reach Brillie method (15 U. S. C. 6801, et Seq.)

(M) Investment advisors have the same meaning as Article 202 (A) (11) (15 U. S. C. 80B-2 (A) (11)) of the 1940 Investment Advisor Act.

(N) Investment companies have the same meaning as Paragraph 3 of the 1940 Investment Company Law (15 U. S. C. 80A-3) and include a separate series of investment companies.

(O) Salvation and solicitation- (1) General. (1) In general, "marketing solicitation" means marketing of products or services that one does to certain consumers:

(i) As described in this su b-part, it must be based on the qualitative information transmitted by an affiliated company to the person.

(II) The intention of purchasing or obtaining the product or service to the consumer.

(2) Excludes marketing for the general public. Marketing solicitation does not include marketing communication for general consumers. For example, those that are not directed to specific consumers, such as television, general magazines, signboard advertisements, and public websites, buy products and services from those who have started communication. Even if you intend to encourage consumers, it is not a marketing solicitation.

(3) Example of marketing solicitation. Marketing solicitation includes other forms of marketing communications directed to specific consumers based on telephone solicitation, direct mail, e-mail, or affiliate qualifications.

(P) Individuals refer to individuals, partnerships, corporations, trusts, heritage, cooperatives, groups, governments, governments, institutions, or other businesses. (Q) Existing trading relationship- (1) Generally. (1) Generally, "existing trading relationships" means the following relationship between the agent who has received a license for an individual or the consumer: (i) Financial contract between that person and consumer, which is valid on the day when the solicitation of this su b-part is sent to the consumer; (II) In 18 months just before the date when the target of this section was sent to the consumer, the consumer's product or service by the consumer was purchased, rental, leasing, or a consumer and his person. In between (including holding valid accounts or insurance, or having other continuous relationships).

(III) When the solicitation to be subject to this section is sent to the consumer, a consumer has made inquiries or applying for the product or service provided by the person.

(2) Explain of existing trading (i) If consumers are currently valid broker dealers, the broker dealer has an existing trading relationship with the consumer and its existence. Consumers can use the qualified information obtained from an affiliated company to solicit their products or services.

(II) If consumers have an investment advisory agreement with the registered investment advisory company, the investment advisory company has an existing business relationship with consumers and consumes the qualification information received from the affiliated company. You can solicit the product and services to the person.

(III) Consumers were the owner of securities issued by an investment company, but if consumers redeem these securities, the investment company has an existing business relationship with consumers and consumers. For 18 months from the date of redemption of the investment company's securities, consumers can solicit products or services to consumers or services.

(IV) Consumers have applied for a margin trading account provided by Broker dealers, but if they have obtained products or services from a broker dealer or have not signed a financial contract with a broker dealer, the broker dealer. Due to the existing business relationship with consumers, for three months from the application date, it is possible to use the qualifications received from the affiliated company to solicit product or service.

(v) Consumers contacted the broker dealer over the phone or services by phone, provided contact information to the broker dealer, but acquired products or services from the institution, or with the institution. If the financial contract or transaction is not concluded, the broker dealer has an existing business relationship with consumers, so for three months from the date of inquiry, use the qualified information received from the affiliated company. You can solicit the product or service to consumers.

(VI) Consumers contacted Broker dealers by e-mail about the products or services of the related investment company, but obtained products or services from broker dealers or investment companies, financial contracts or transactions. If not concluded, the broker dealers and investment companies all have existing trading relationships with consumers, so for three months from the date of inquiry, the qualitative information received from the affiliated company. You can use it to solicit the product or service to consumers.

(VII) A consumer with an investment company belonging to an affiliated company group and a consumer with existing trading relationships call the intensive call center of an affiliated company to contact the product or services provided by an investment company related broker dealer, and call center If you provide contact information, the phone corresponds to a inquiry to the broker dealer. In such a case, the broker dealer has an existing trading relationship with consumers, so for three months from the inquiry date, use the qualified information received from the investment company to use it for consumers. Or you can solicit the service.

(3) Examples without existing trading relationships (i) If consumers call the intensive call center of an affiliated company group to contact the existing accounts of consumers in the broker dealer, the phone calls. It is not an inquiry to an affiliated company other than a broker dealer holding a consumer account, and there is no existing trading relationship between a consumer and a broker dealer affiliated company. (v) Consumer made inquiries to the broker dealer over the phone and provided contact information to the broker dealer, but obtained products or services from the institution. If you do not conclude a financial contract or transaction with the institution, the broker dealer has an existing business relationship with consumers, so for three months from the date of inquiry, the qualitative information received from the affiliated company. You can use to solicit the product or service to consumers.

(3) Examples without existing trading relationships (i) If consumers call the intensive call center of an affiliated company group to contact the existing accounts of consumers in the broker dealer, the phone calls. It is not an inquiry to an affiliated company other than a broker dealer holding a consumer account, and there is no existing trading relationship between a consumer and a broker dealer affiliated company. (v) Consumers contacted the broker dealer over the phone or services by phone, provided contact information to the broker dealer, but acquired products or services from the institution, or with the institution. If the financial contract or transaction is not concluded, the broker dealer has an existing business relationship with consumers, so for three months from the date of inquiry, use the qualified information received from the affiliated company. You can solicit the product or service to consumers.

(ii) If a consumer who has an advisory agreement with a registered investment adviser calls an affiliate of the investment adviser to inquire about the affiliate's store location and hours of operation but does not inquire about the affiliate's products or services, the call does not constitute an inquiry and does not create a pre-existing business relationship between the consumer and the affiliate. In addition, if an affiliate obtains a consumer's telephone number, it does not constitute an inquiry and does not create a pre-existing business relationship between the consumer and the affiliate.

(iii) If a consumer calls a broker-dealer in response to an advertisement offering a free promotional product to consumers who call a toll-free number, but the advertisement does not indicate that the broker-dealer's products or services will be sold to consumers who call in response to the advertisement, the call does not create a pre-existing business relationship between the consumer and the broker-dealer because the consumer did not inquire about any products or services offered by the financial institution but only responded to the offer of a free promotional product.

(r) Transfer agent has the same meaning as in Section 3(a)(25) of the Securities Exchange Act of 1934 (15 U. S. C. 78c(a)(25)).

(s) customer means

(1) a broker or dealer other than a broker or dealer registered by notice to the Commission under Section 15(b)(11) of the Securities Exchange Act of 1934 (15 U. S. C. 78o(b)(11));

(2) an investment company;

(3) an investment adviser registered with the Commission under the Investment Advisers Act of 1940 (15 U. S. C. 80b-1, et seq.);

(4) a transfer agent registered with the Commission under Section 17A of the Securities Exchange Act of 1934 (15 U. S. C. 78q-1).

(a) Initial Notice and Opt-Out Requirements - (1) In general. An affiliate may not use qualification information about a consumer received from an affiliate to make marketing solicitations to that consumer unless:

(i) clearly and conspicuously disclose to the consumer in writing, or, if the consumer consents, by a concise electronic notice, that the affiliate may use qualification information about the consumer received from the affiliate to make marketing solicitations to the consumer;

(II) Use qualification information to provide rational opportunities for "op t-out" to consumers and provide rational and easy methods, or consumers solicit marketing to consumers. Being prohibited from doing. (III) When consumers do not opt out.

(2) Example. Consumers have a securities trading account for Broker dealers. Broker dealers provide consumer qualified information to affiliated investment advisors. Based on its qualitative information, the investment advisory company wants to solicit marketing on a on e-legged account to the consumer. Investment advisors do not have existing business relationships with consumers, and no other exceptions are applied. The investment advisory company will use the qualification information received from a broker dealer affiliated company, except that consumers are given op t-out notifications and opportunities, and consumers do not opt out. It is forbidden to make solicitation to consumers.

(3) Related companies that can provide notifications. The notifications required in this section must be provided:

(i) A related company that had existing trading relationships with consumers or had in the past.

(II) Part of joint notification from two or more members of related company groups. However, at least one of the related companies listed in the joint notification has existing trading relationships with consumers or in the past.

(b) Marketing solicitation -(1) General. (1) In general, in this section, solicitation shall be performed in the following cases:

(i) Receive qualification information from an affiliated company;

(II) Use its qualitative information to perform the following or more:

(A) Identify the type of consumer or consumer who is soliciting marketing;

(B) Set a criterion for selecting consumers who are soliciting marketing.

(C) To determine the company's products or services sold to the consumer, or adjust the marketing solicitation for the consumer.

(III) As a result of using qualification information, consumers are provided with marketing solicitation.

(2) Receive qualitative information from affiliates, including those that are common in common databases. You can receive qualified information from affiliates in various ways, including the case where affiliates register that information in a common database that you can access.

(3) Receipt or Use of Credentials by Service Providers. Except as provided in subsection (b)(5) of this section, you receive or use the credentials of an affiliate if a service provider acting on your behalf, whether an affiliate or an unaffiliated third party, receives or uses that information in the manner described in subsection (b)(1)(i) or (b)(1)(ii). All relevant facts and circumstances determine whether a person is acting as your service provider when it receives or uses the credentials of an affiliate in connection with the marketing of your products and services.

(4) Use of Proprietary Credentials by Affiliates. Except for the use of credentials received from an affiliate in the manner described in subsection (b)(1)(ii) of this section, an affiliate will not engage in marketing solicitations subject to this section if it:

248.122 — Scope and duration of opt out.

(i) uses its own qualification information obtained in connection with an existing business relationship with a consumer to market your products or services to the affiliate's consumer. (ii) Direct a service provider to use an affiliate's own credentials obtained in connection with an existing business relationship that the service provider already has or has had with a consumer to sell its products or services to the consumer, and do not directly contact the service provider regarding such use.

(5) Use of credentials by service provider - (i) In general. If a service provider (including an affiliate or a third-party service provider that maintains or has access to a common database to which you may have access) receives from your affiliate a credential obtained in connection with an existing business relationship that your affiliate has or has had with a consumer and uses the credential to sell your products or services to that affiliate's consumer, you do not engage in sales solicitation subject to this section, so long as:

(A) your affiliate controls the service provider's access to and use of the credential, including the right to set the specific terms under which the service provider may use such information to sell your products or services;

(B) Specific conditions (B) Service providers can access and use affiliate qualifications to sell affiliate products and services (or generally affiliate products and services) to affiliate consumers Affiliate consumers can sell products or services to affiliate consumers, such as the identity of affiliate companies, etc.), and the types of products or services of affiliates that may be sold, and consumers of affiliates Number of times to receive marketing materials;

(C) Your affiliated company is rationally designed to guarantee that service providers use the qualitative information of your affiliated company in accordance with the marketing conditions of products or services set by your affiliated company. Request a service provider to implement a policy and procedure;

(D) 特 Your affiliated company must be identified or both in marketing materials provided to consumers. (E) Do not use affiliate qualifications directly in the method described in this section (B) (1) (II). (II) written requirements. (A) The requirements for this section (b) (5) (I) (a) and (c) must be stipulated in a written contract between the affiliate and the service provider.

(B) The specific conditions set by the affiliate specified in this section (B) (5) (i) (b) must be specified in writing.

(6) Example of marketing solicitation (i) Consumers have signed an investment advisory agreement with a registered investment advisory company affiliated with Broker dealers. Broker dealer receives qualification information on consumers from investment advisors. Broker dealers use their qualitative information to identify consumers who are soliciting marketing products and services, and as a result, Broker dealers provide consumers on marketing solicitation for broker services. In accordance with this section (B) (1), the broker dealer solicited consumers. (b) Service provider can access and use affiliate qualifications to sell affiliate products and services (or generally affiliate products and services) to affiliate consumers (Affiliate company, etc., which can sell products or services to affiliate consumers), affiliates, and types of products or services of related companies that may be sold, and affiliates. Many consumers may receive marketing materials;

(D) 特 Your affiliated company must be identified or both in marketing materials provided to consumers.

(E) Do not use affiliate qualifications directly in the method described in this section (B) (1) (II).

(II) written requirements. (A) The requirements for this section (b) (5) (I) (a) and (c) must be stipulated in a written contract between the affiliate and the service provider.

(B) The specific conditions set by the affiliate specified in this section (B) (5) (i) (b) must be specified in writing.

(6) Example of marketing solicitation (i) Consumers have signed an investment advisory agreement with a registered investment advisory company affiliated with Broker dealers. The Broker dealer receives an eligible information on consumers from the investment advisor. Broker dealers use their qualitative information to identify consumers who are soliciting marketing products and services, and as a result, Broker dealers provide consumers on marketing solicitation for broker services. In accordance with this section (B) (1), the broker dealer solicited consumers. (B) Specific conditions (B) Service providers can access and use affiliate qualifications to sell affiliate products and services (or generally affiliate products and services) to affiliate consumers Affiliate consumers can sell products or services to affiliate consumers, such as the identity of affiliate companies, etc.), and the types of products or services of affiliates that may be sold, and consumers of affiliates Number of times to receive marketing materials;

(D) 特 Your affiliated company must be identified or both in marketing materials provided to consumers.

(E) Do not use affiliate qualifications directly in the method described in this section (B) (1) (II).

(II) written requirements. (A) The requirements for this section (b) (5) (I) (a) and (c) must be stipulated in a written contract between the affiliate and the service provider.

(B) The specific conditions set by the affiliate specified in this section (B) (5) (i) (b) must be specified in writing.

248.123 — Contents of opt out notice; consolidated and equivalent notices.

(ii) The same facts as the example in paragraph (b)(6)(i) of this section, except that the broker-dealer, after using the eligibility information to identify consumers to receive marketing solicitations about brokerage products and services, asks a registered investment adviser to send, and the investment adviser sends, the marketing solicitations to the consumers. Pursuant to paragraph (b)(1) of this section, the broker-dealer used eligibility information about the consumers received from its affiliates to identify consumers to receive marketing solicitations about its products or services, and as a result, the consumers were provided with marketing solicitations about the broker-dealer's products and services, thereby making a marketing solicitation to the consumers.

(iii) The same facts as the example in paragraph (b)(6)(i) of this section, except that eligibility information about consumers who have investment advisory agreements with registered investment advisers is placed in a common database that is independently accessible and usable by all members of the affiliated group of companies. Without using the investment adviser's eligibility information, the broker-dealer develops selection criteria and provides those criteria, marketing materials, and related instructions to the investment adviser. The investment adviser uses the selection criteria provided by the broker-dealer to verify the eligibility information about its consumers, determines which consumers should receive the broker-dealer's marketing materials, and sends the broker-dealer's marketing materials to those consumers. Even if the broker-dealer received the eligibility information through the common database described in subsection (b)(2) of this section, it did not use that information to identify consumers or to set the selection criteria; instead, the investment adviser used its own eligibility information. Thus, pursuant to subsection (b)(4)(i), the broker-dealer did not make a marketing solicitation to the consumer.

(iv) The same facts as the example in paragraph (b)(6)(iii) of this section, except that the registered investment adviser provides the broker-dealer's criteria to the investment adviser's service provider and instructs the service provider to use the investment adviser's qualification information to identify investment adviser consumers who meet the criteria and to send the broker-dealer's marketing materials to those consumers. The broker-dealer does not directly communicate with the service provider regarding the use of the investment adviser's information to sell products or services to the investment adviser consumers. Consistent with paragraph (b)(4)(ii) of this section, the broker-dealer does not engage in marketing solicitations to consumers.

(v) The affiliated group includes the investment company, the investment company's lead underwriter, the retail broker-dealer, and the transfer agent that also acts as a service provider. Each affiliate in the group registers information about consumers in a common database. The service provider has access to all information in the common database. The investment company controls the service provider's access to and use of the qualification information. This control is set out in a written agreement between the investment company and the service provider. The written agreement also requires the service provider to establish reasonable policies and procedures designed to ensure that the service provider uses the investment company's qualification information in connection with the marketing of the products and services of all affiliates, including the lead underwriter and the retail broker-dealer, and in accordance with specific terms established by the investment company. The investment company, in a separate written communication, specifies the terms under which the service provider may use the investment company's qualification information to sell the retail broker-dealer's products and services to the investment company's consumers. The specific terms are as follows: A list of affiliates (including retail broker-dealers) through which the service provider may sell products or services to the investment company's consumers.

Without using the investment company qualification information, the retail broker-dealer develops selection criteria and provides those criteria, marketing materials, and related instructions to the service provider. The service provider uses the investment company qualification information from a common database to identify investment company consumers to whom brokerage services will be sold. When the retail broker-dealer's marketing materials are provided to the identified consumers, the investment company's name appears on the retail broker-dealer's marketing materials, the letter of introduction accompanying the marketing materials, the account statement accompanying the marketing materials, or the envelope containing the marketing materials. The requirements of subsection (b)(5) of this section are met and the retail broker-dealer is not making a sales solicitation to the consumer.

(vi) The same facts as the example in subsection (b)(6)(v) of this section, except that the covenant permits the service provider to use the investment company qualification information to market products and services of other affiliates to the investment company consumers whenever the service provider determines it is appropriate. The service provider uses the investment company qualification information pursuant to the discretion granted by the covenant. Because the covenant is not specific, the requirements of subsection (b)(5) of this section are not met.

(c) Exceptions. The provisions of this section do not apply when using qualification information received from an affiliate:

(1) to make marketing solicitations to consumers with whom the affiliate has an existing business relationship;

(2) to facilitate contact with an individual to provide employee benefits or other services pursuant to a contract with an employer that is related to and arising from a current employment relationship or the individual's status as a participant or beneficiary of an employee benefit plan;

(3) to provide services on behalf of an affiliate, except that this section shall not be construed to authorize an affiliate to send marketing solicitations on behalf of an affiliate if the affiliate would not be permitted to send marketing solicitations as a result of a consumer's opt-out election under this section;

(4) In response to a consumer-initiated communication about your products or services;

(5) When the consumer has authorized or requested to be solicited;

(6) When compliance with this section would prevent you from complying with state insurance law provisions regarding unfair discrimination in any state in which you lawfully do business.

(d) Examples of Exceptions - (1) Examples of Existing Relationship Exceptions. A consumer has a securities account with a broker-dealer. The consumer also has a deposit account with a depository institution affiliated with the broker-dealer. The broker-dealer receives eligibility information about the consumer from an affiliate of the depository institution and uses that information to make a marketing solicitation to the consumer about the broker-dealer's college savings account. The broker-dealer may make this marketing solicitation even though the consumer was not given notice and opportunity to opt out because of an existing business relationship with the consumer.

248.124 — Reasonable opportunity to opt out.

(2) Examples of Service Provider Exceptions: (i) A consumer has a securities account with a broker-dealer. The broker-dealer provides eligibility information about the consumer to a registered investment adviser affiliated with the broker-dealer. Based on the eligibility information, the investment adviser wishes to make a marketing solicitation to the consumer about its advisory services. The investment adviser does not have an existing business relationship with the consumer, and none of the other exceptions in this subsection (c) apply. The consumer receives an opt-out notice and chooses to opt out of receiving such marketing solicitations. The investment adviser asks the service provider to send the marketing solicitation to the consumer on its behalf. As a result of the consumer's opt-out election, the investment adviser is not permitted to make marketing solicitations, and the service provider cannot send the marketing solicitation on behalf of the investment adviser.

(ii) The same facts as in paragraph (d)(2)(i) of this section, but the consumer receives an opt-out notice but does not choose to opt out. The investment adviser asks the service provider to send the solicitation to the consumer on its behalf. As a result of the consumer's failure to opt out, the investment adviser is permitted to make marketing solicitations, so the service provider may send the marketing solicitation on behalf of the investment adviser.

(3) Examples of consumer-initiated communications: (i) A consumer who is a record holder of shares in an investment firm initiates a communication with an affiliated registered investment adviser about advisory services. The affiliated investment adviser may respond to the consumer-initiated communication with credentials obtained from the investment firm or other affiliates to make a marketing solicitation about the affiliated investment adviser's services.

(ii) A consumer who has a securities account with a broker-dealer contacts the broker-dealer requesting information about ways to save and invest for a child's college education, without identifying the type of savings or investment vehicle that may be of interest to the consumer. The communication may be responded to with information about various products or services offered by the broker-dealer and one or more of its affiliates. Such products, services, and investments include investments in affiliated investment companies, investments in Section 529 plans offered by a broker-dealer, or trust services offered by another financial institution within the affiliated group. An affiliate that offers products or services that respond to a consumer's request for information about saving and investing for a child's college education may use the eligibility information to make marketing solicitations to the consumer in response to this communication.

(III) Registered investment advisor performs marketing calls to consumers without using qualifications received from affiliated companies. Investors leave a voice mail message to invite consumers to call tol l-free dials to receive information on services provided by investors. If consumers call tol l-free on investment advisory services, the phone is a communicatio n-led communication for products or services, and investment advisors are currently from affiliates to solicit marketing to consumers. You can use the received qualification information.

(IV) Consumers called the broker dealer and asked about the store's location and business hours, but did not demand information about products or services. Since consume r-led communication is not related to Broker dealer's products or services, Broker dealers cannot use the qualified information received from affiliated companies to solicit consumers. Therefore, the use of qualitative information received from an affiliated company does not correspond to communication, and no exception is applied.

(V) Consumers call the broker dealer and ask questions about the store and business hours. The customer service representative asks the consumer if there is a specific product or service that consumers are seeking information. Consumers stopped by and said they wanted to know about the mutual fund (registered ope n-ended investment company). The customer service representative proposes to provide the information over the phone and mail the consumers with additional information. Consumers agree to this and provide or confirm contact information to receive mailed materials. Broker dealers can use the qualifying information received from an affiliated company to make marketing solicitation on investment trusts to consumers. This is because such a marketing solicitation corresponds to consume r-led communication on investment trusts. (III) A registered investment advisor performs marketing calls to consumers without using the qualifications received from an affiliated company. Investors leave a voice mail message that invites consumers to call tol l-free dials to receive information on services provided by investors. If consumers call tol l-free services to contact the investment advisory service, the phone is a communication led by consumers or services, and investment advisors are now from affiliated companies to solicit marketing to consumers. You can use the received qualification information.

248.125 — Reasonable and simple methods of opting out.

(V) Consumers call the broker dealer and ask questions about the store and business hours. The customer service representative asks the consumer if there is a specific product or service that consumers are seeking information. Consumers stopped by and said they wanted to know about the mutual fund (registered ope n-ended investment company). The customer service representative proposes to provide the information over the phone and mail the consumers with additional information. Consumers agree to this and provide or confirm contact information to receive mailed materials. Broker dealers can use the qualifying information received from an affiliated company to make marketing solicitation on investment trusts to consumers. This is because such a marketing solicitation corresponds to consume r-led communication on investment trusts. (III) Registered investment advisor performs marketing calls to consumers without using qualifications received from affiliated companies. Investors leave a voice mail message to invite consumers to call tol l-free dials to receive information on services provided by investors. If consumers call tol l-free on investment advisory services, the phone is a communicatio n-led communication for products or services, and investment advisors are currently from affiliates to solicit marketing to consumers. You can use the received qualification information.

(V) Consumers call the broker dealer and ask questions about the store and business hours. The customer service representative asks the consumer if there is a specific product or service that consumers are seeking information. Consumers stopped by and said they wanted to know about the mutual fund (registered ope n-ended investment company). The customer service representative proposes to provide the information over the phone and mail the consumers with additional information. Consumers agree to this and provide or confirm contact information to receive mailed materials. Broker dealers can use the qualifying information received from an affiliated company to make marketing solicitation on investment trusts to consumers. This is because such a marketing solicitation corresponds to consume r-led communication on investment trusts. (4) Example of consumer approval or request for marketing solicitation (i) Consumers with securities trading accounts in a broker dealer approve or request information about life insurance provided by a broker dealer insurance company. Consumers using qualifications on consumers obtained by insurance companies, regardless of whether they have been given to broker dealers or insurance companies, whether they have been given to broker dealers or insurance companies. Authorates to solicit marketing on life insurance.

(II) Consumers create an online application form to open an online securities account at a broker dealer. The broker dealer's online application form has a blank checkbox, and consumers can check or request information to Broker dealer's affiliates. Consumers check the box. Consumers have approved or demanded marketing solicitation from a broker dealer affiliated company.

(III) Consumers fill in an online application form to open an online securities trading account on the broker dealer. The broker dealer's online application includes a checkbox that indicates that consumers approve or demand information from a broker dealer affiliated company. Consumers have not released the check box selection. Consumers have not approved or demanded marketing solicitation from a broker dealer affiliated company.

(IV) The contract conditions for the broker account include a pr e-printed fixed phrase that consumers will be approved or requested that consumers will be recruited from a broker dealer affiliated company by applying for an account. There is. Consumers have not approved or demanded marketing solicitation from a broker dealer affiliated company.

(e) Relationship with relevant company shared notice and op t-out. If any of the provisions of this su b-part, if it is applicable, Article 603 (D) (2) (III) (15 U. S. C. 1681a (2) (III)) and Opto It does not limit the responsibility of those who comply with the outs.

(A) Range of optout- (1) Generally. Unless there are other provisions in this section, if consumers select opt -out, the affiliated company to be subject to op t-out notification uses the qualified information received from other affiliated companies described in the notification. It is prohibited to solicit marketing to consumers.

(2) Continuous relationship- (i) Generally. When consumers build a continuous relationship with your or your affiliated companies, op t-out notifications can be applied to the qualified information acquired in connection with:

(A) As long as the continuous relationships to be op t-out are appropriately explained, consumers, including the continuous relationship built after the Optout Notification of the Opti Notification, were built with your company or your affiliated company. Succession or multiple continuous relationships.

(B) Other transactions between consumers and your affiliated companies described in the notification.

248.126 — Delivery of opt out notices.

(II) Example of continuous relationship. In the following cases, consumers have a continuous relationship with your company or your affiliated companies:

(A) Open a securities trading account with your company or your affiliated company, or conclude an advisory agreement;

(B) Buy a loan owned by your company or its affiliated companies; (C) Buy the stock of an investment company under your own name;

(D) Investment through your or your affiliated companies. For example, if you or your affiliated company acts as a securities custodian or as a custodian of assets in the retirement agreement;

(E) A consensus or consent of your orient company that you or your affiliated companies arrange or mediate your mortgage for consumers;

(F) A conclusion of a lease of a dwelling property with your affiliated company or your affiliated company.

(G) You will receive a financial, investment, or economic advisory service from your or your affiliated company for a fee.

(3) If there is no continuous relationship- (i) Generally. There is no continuous relationship between the consumer and the affiliated company of your shrine, and the consumers related to consumers in connection with consumers, such as independent transactions and rejected applications. The op t-out notification provided to consumers, which is to obtain qualification information, is applied only to the qualification information obtained in connection with the transaction.

(II) Example of single transaction. Isolation transactions occur in the following cases:

248.127 — Renewal of opt out elections.

(A) When consumers use the ATMs of your company or your affiliated company to bring out cash from other financial institution accounts.

(B) For consumers, the broker dealer does not expect to be engaged in other transactions as accommodation facilities, but for consumers only for the purpose of liquidating or purchasing securities once only. When opening a broker account.

(4) A menu of options. For example, prohibiting solicitations from certain types of affiliates covered by the opt-out notice but not from other types of affiliates covered by the notice, prohibiting solicitations based on certain types of eligibility information but not other types of eligibility information, or prohibiting solicitations by certain delivery methods but not other delivery methods. However, any option must allow consumers to opt out of all marketing solicitations from all affiliates covered by the notice.

(5) Special Provisions for Notices After Termination of All Continuing Relationships - (i) In general. After all continuing relationships with a user or its affiliates are terminated, if the user subsequently enters into another continuing relationship with the user or its affiliates and the user's eligibility information is used for marketing solicitations, the user must provide a new opt-out notice. The new opt-out notice must apply, at a minimum, to the eligibility information obtained in connection with the new continuing relationship. A consumer's decision not to opt out after receiving a new opt-out notice pursuant to this subsection (b) does not void the consumer's prior opt-out election that applies to eligibility information obtained in connection with the terminated relationship, regardless of whether the new opt-out notice applies to eligibility information obtained in connection with the terminated relationship.

(i) As described in this su b-part, it must be based on the qualitative information transmitted by an affiliated company to the person. (B) Eptured period. Consumers' op t-out choices are electronic if the consumer later agreed in a document or consumer for at least five years ("op t-out period") from the time the consumer op t-out selection was accepted and implemented. It must be valid unless you withdraw op t-out. Op t-out periods for more than five years can be abolished, including the op t-out period unless consumers are canceled.

(a) Contents of op t-out notification- (1) Generally. The notification must be clear, noticeable, and concise, and must be disclosed accurately:

(i) The name of an affiliated company that provides notifications. If the notification is jointly provided by multiple affiliated companies and each affiliated company has a common name like "ABC", the notification will, for example, "ABC's entity company", "ABC bank, credit card, insurance. By describing the name of each affiliated company that provides notifications, indicating that it is provided by multiple companies with ABC names, ABC group companies, or multiple affiliated companies. Can do. However, if the associated company that provides joint notification does not share the common name, the notification will be named each affiliated company individually, or for example, the notification will be "all companies of ABC and XYZ". By stating that it will be provided by "ABC Bank, Securities Company and XYZ Insurance Company", the common names used by these affiliates must be identified; (b) Optout period. Consumers' op t-out choices are electronic if the consumer later agreed in a document or consumer for at least five years ("op t-out period") from the time the consumer op t-out selection was accepted and implemented. It must be valid unless you withdraw op t-out. Op t-out periods for more than five years can be abolished, including the op t-out period unless consumers are canceled.

(a) Contents of op t-out notification- (1) Generally. The notification must be clear, noticeable, and concise, and must be disclosed accurately:

(i) The name of an affiliated company that provides notifications. If the notification is jointly provided by multiple affiliated companies and each affiliated company has a common name like "ABC", the notification will, for example, "ABC's entity company", "ABC bank, credit card, insurance. By describing the name of each affiliated company that provides notifications, indicating that it is provided by multiple companies with ABC names, ABC group companies, or multiple affiliated companies. Can do. However, if the affiliated company that provides joint notification does not share the common name, the notification will be named each affiliated company individually, or for example, the notification will be "all companies of ABC and XYZ". By stating that it will be provided by "ABC Bank, Securities Company and XYZ Insurance Company", the common names used by these affiliates must be identified; Consumers' op t-out choices are electronic if the consumer later agreed in a document or consumer for at least five years ("op t-out period") from the time the consumer op t-out selection was accepted and implemented. It must be valid unless you withdraw op t-out. Op t-out periods for more than five years can be abolished, including the op t-out period unless consumers are canceled.

(C) The time of op t-out. Consumers can always opt out. (a) Contents of op t-out notification- (1) Generally. The notification must be clear, noticeable, and concise, and must be disclosed accurately:

(ii) A list of the affiliates or types of affiliates to which the notice applies. If the affiliates to which the notice applies have a common name, such as "ABC," the notice may indicate that it applies to multiple companies with the ABC name, or to multiple companies in the ABC group or affiliated companies, by listing, for example, "all ABC companies," "ABC bank, credit card, insurance and brokerage companies," or the name of each affiliate providing the notice. However, if the affiliates covered by the notice do not all have a common name, the notice must name each covered affiliate individually or identify each common name used by those affiliates, for example, by stating that the notice applies to "all of ABC Company and XYZ Company" or "ABC Bank & Securities Company and XYZ Insurance Company";

(iii) A general description of the types of credential information that may be used in marketing solicitations to the consumer;

(iv) The consumer may choose to limit the use of the credential information to make marketing solicitations to the consumer;

(v) The consumer's choice applies for a specific period of time described in the notice, and, if applicable, the consumer may be permitted to renew the choice after the period expires;

(vi) If the notice is provided to consumers who may have previously opted out, such as when the notice is provided to consumers annually, consumers who have chosen to limit marketing solicitations do not need to act again until they receive a renewal notice;

(vii) A reasonable and convenient way for consumers to opt out. (2) Joint relationships. (i) If two or more consumers acquire products or services jointly, a single opt-out notice may be provided to the joint consumers. Any of the joint consumers may exercise their right to opt out. (ii) A list of the affiliates or types of affiliates to which the use of eligibility information is covered by the notice. If the affiliates covered by the notice have a common name, such as "ABC," the notice may indicate that it applies to multiple companies with the ABC name, or to multiple companies in the ABC group or affiliated companies, by listing, for example, "all ABC companies," "ABC bank, credit card, insurance and brokerage companies," or the name of each affiliate providing the notice. However, if the affiliates covered by the notice do not all have a common name, the notice must name each covered affiliate individually or identify each common name used by those affiliates, for example, by stating that the notice applies to "all of ABC Company and XYZ Company" or "ABC Bank & Securities Company and XYZ Insurance Company";

248.128 — Effective date, compliance date, and prospective application.

(iii) A general description of the types of credential information that may be used in marketing solicitations to the consumer;

(iv) The consumer may choose to limit the use of the credential information to make marketing solicitations to the consumer;

(v) The consumer's choice applies for a specific period of time described in the notice, and, if applicable, the consumer may be permitted to renew the choice after the period expires;

Elim Poon - Journalist, Creative Writer

Last modified: 27.08.2024

The guidance focuses on two common rules under the CAP Code that often become problematic in the context of affiliate marketing. marketing and native advertising. Our commentary: The ASA's new online extension is important for UK marketers since it now covers marketers. glfe.info FTC and CAP Code are not the only regulatory agencies enforcing the rules.

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