Running an FTC-Compliant Website
Charles Carreon
The FTC has published a special paper called “Dot Com Disclosures: Information About Online Advertising” in which the FTC laid out guidelines for how to make disclosures in online ads both “clear and conspicuous.” While the document may make interesting reading for bureaucratically-minded website designers, the main point is simple, and requires no extensive explanation — point the consumer directly toward the information that accurately describes the transaction, don't hide information in small type, or behind checkboxes that by default appear already checked, thus discouraging online consumers from discovering the true facts of the transaction. Put in a positive light, we could summarize it like this:
Describe your goods and services accurately.
Say nothing about the product or service that is untrue, or would lead the reader to believe something that is untrue.
Make the financial consequences of the transaction clear and understandable.
Avoid deals that an objective person would call “unfair.”
Disclose all terms of the transaction, especially recurring charges, “clearly and conspicuously.”
Format the website in a manner that enhances reader understanding.
Only describe things as “free” when they really are.
Promise refunds only if you are going to pay them, because once you make the promise, it is binding.
Adopt an appropriate “privacy policy” that discloses how you use “customer data” you gather through your website. If you gather customer data from children under 13, comply with COPPA, the Children's Online Privacy Protection Act.
If you're shipping goods, the FTC requires that you ship orders within the time stated on the website, and if you can't ship on time, send the buyer a notice promptly with: (1) a revised shipping date, and (2) notice that they are free to accept late delivery or cancel the order and receive a refund. If they cancel, you must refund.
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The FTC has published a special paper called “Dot Com Disclosures: Information About Online Advertising” in which the FTC laid out guidelines for how to make disclosures in online ads both “clear and conspicuous.” While the document may make interesting reading for bureaucratically-minded website designers, the main point is simple, and requires no extensive explanation — point the consumer directly toward the information that accurately describes the transaction, don't hide information in small type, or behind checkboxes that by default appear already checked, thus discouraging online consumers from discovering the true facts of the transaction. Put in a positive light, we could summarize it like this:
Describe your goods and services accurately.
Say nothing about the product or service that is untrue, or would lead the reader to believe something that is untrue.
Make the financial consequences of the transaction clear and understandable.
Avoid deals that an objective person would call “unfair.”
Disclose all terms of the transaction, especially recurring charges, “clearly and conspicuously.”
Format the website in a manner that enhances reader understanding.
Only describe things as “free” when they really are.
Promise refunds only if you are going to pay them, because once you make the promise, it is binding.
Adopt an appropriate “privacy policy” that discloses how you use “customer data” you gather through your website. If you gather customer data from children under 13, comply with COPPA, the Children's Online Privacy Protection Act.
If you're shipping goods, the FTC requires that you ship orders within the time stated on the website, and if you can't ship on time, send the buyer a notice promptly with: (1) a revised shipping date, and (2) notice that they are free to accept late delivery or cancel the order and receive a refund. If they cancel, you must refund.
Next Page --->