Secret FTC Diet Agreements EnteredWritten by Pace Lattin
May 6, 2012 # 8:12 pm # Legal Challenges, Specials # 15 Comments
Performance Marketing Insider has learned that at least a dozen major CPA Networks have entered or are in the process of entering into agreements with the FTC that will prohibit these networks and much of industry from working on many if not most diet offers. These pre-settlement “consent” agreements were reached before the companies were sued by the FTC but were, notified that they were under investigation.
Most of the agreements are the result of several years of investigation into the marketing of diet offers, many on re-bill that were often promoted via CPA networks using purported deceptive means. The Networks were all contacted last year and informed they were potential targets of investigation – and many of them immediately entered into negotiations with the FTC to prevent potentially damaging lawsuits. Some networks, such as COPEAC fought from the start and were essentially put out of business by the legal bills.
The result of these agreements will basically ban all these networks from working on any diet offers, unless the products are intensely scrutinized and go through double-blind studies that prove its effectiveness. This essentially prevents any new diet pills or products from being marketed via these CPA Networks, unless there is overwhelming proof that they work. This means that any new “fad” products will be almost impossible to promote via affiliate marketing. Even for the networks that have not entered into agreements with the FTC, this is a sure sign that should follow these rules or risk being sued by the FTC.
These requirements are based on guidance already provided from the FTC on dietary supplements.