Few things you can do raise red flags with the FTC like (a) unfair, deceptive, or fraudulent advertising and (b) predatory payment practices.

Unfair, Deceptive or Fraudulent Advertising

This type of advertising includes making unsupported claims about your product or service, and misleading endorsements and testimonials.

Unsubstantiated Claims.

Health and diet products are particular targets of both the FTC and the U.S. Food and Drug Administration (FDA). In fact, the FTC announced on January 4, 2007, that it had nailed four weight loss companies (Xenadrine EFX, CortiSlim, TrimSpa, and One-A-Day WeightSmart) for making unsubstantiated claims about their products.

“You won’t find weight loss in a bottle of pills that claims it has the latest scientific breakthrough or miracle ingredient,” said FTC Chairman Deborah Platt Majoras. “Paying for fad science is a good way to lose cash, not pounds.”

It is easy to understand that you don’t make claims that your product causes weight loss unless you have scientific proof to back it up.

Even if you would never lie, your affiliate marketers can paint a bulls-eye on your forehead by making false claims on your behalf.

The FTC doesn’t want false “miracle” cures being sold. It doesn’t care whether or not you are personally making the misrepresentations. The goal is to protect the consumer. If it takes shutting you down to prevent your affiliates from lying to the public, then so be it.

About the Author

With an advanced international law degree from Georgetown University and more than 14 years of real world legal experience, Attorney Mike Young shows entrepreneurs how to protect and grow their businesses online. He's the author of "Internet Marketing Legal Secrets Revealed," "How to Create Your Own Internet Business Without a Lawyer for Under $175," and the creator of Website Legal Forms Generator^TM. Not just a lawyer who focuses exclusively on Internet and marketing law, Mike’s been working with computers for more than 27 years (his first computer was an Atari 400 with 8 KiB RAM) and started representing Internet businesses back in 1996.