In compliance with new guidelines, direct marketers should be aware of practices concerning billing, advertising, endorsements/testimonials, customer service, and fulfillment for customers. Failure to comply can result in suspension of merchant accounts with credit bureaus. apogeeINVENT encourages clients to be aware of the following practices:

Billing

Billing terms must be clearly disclosed. This means terms of membership enrollment must be made clear in terms the customer will understand. Pre-checked boxes are not allowed for billing or terms and conditions of enrollment, customers must check these boxes themselves. Double-validation, in this instance meaning the customer must accept the terms and conditions and pricing requirements twice, is also required. The new guidelines also indicate a trial period must be at least 10 days, and govern billing cycles. A customer cannot be billed for the same price point twice in thirty days. After thirty days the customer may be billed for the second shipment, but not before. If a direct marketer wants to advertise their product as "full satisfaction guaranteed" or "full money back," they must reimburse all costs to the consumer, including shipping and handling. "Up-sells" or "cross-sells" are prohibited for direct marketers.

Advertising

The best practices for advertising have also been updated. If purchasing a product enters the customer into a membership program with recurring billing at the end of the trial offer, the trial may not be labeled "Free" or "Risk Free." Unless a celebrity has expressed legal written consent, their image is not allowed to be used in conjunction with promotion of a product. Product claims must be completely truthful and substantiated by the product formulas and/or clinical research. Claims directly prohibited under the new guidelines include "Flushes Pounds", "Flushes Toxins", and "Builds Muscle." Examples of additional phrases include:

• Stating a product will cause permanent weight loss.
• Stating a product will cause substantial weight loss no matter what or how much the consumer eats.
• Stating a product will make you lose a specific amount of weight in a specific amount of time.
• Causes weight loss or muscle growth in specific body parts.
• Can substitute a full income job.
• Can earn you money with little to no effort at all.
• Can earn you a specified amount of money in a specified amount of time.
• Will instantly earn money with no investment or effort.
• Will give you access to "free money."
• Is endorsed or at all associated with Obama or the government.
• Will secure a job for you at another company or at the product's company.
• Has been successfully used by an unrealistic amount of people.
• Stating a product will earn you hundreds of thousands or millions of dollars.
• Stating a product will instantly earn you money with no effort or investment.

If a product is featured in a blog, the posting must comply with FTC guidelines, or clearly demonstrate that the blog is an advertisement and/or the posting has been created for the sole purpose of the products promotion. Use of news sites (ABC, CNN, etc) must follow FTC guidelines and clearly demonstrate to the consumer that the use is in an advertising context. Countdown clocks, tickers, or other offer expires today are expressly prohibited. The use of a false sense of urgency is also prohibited unless the offer will truly be taken away from the customer. Qualifications for trials cannot disqualify customers for not meeting parameters including but not limited to: age, weight, height and location.

Endorsements/Testimonials

Endorsements and testimonials must reflect the honest and true experience and opinions of the endorsee. These endorsements must also provide a clear and accurate representation of what results the user of the product will likely achieve. If substantiation is not provided the advertiser must clearly disclose what the generally expected results will be and provide substantiation.

Customer Services

Merchants must provide customers with best customer support practices. Multiple outlets for cancellation must be provided including, email, phone, or mail. Customer service must be available at reasonable hours for where the product was sold. Customer support hold time should not be in excess of 120 seconds and readily accessible. After hour recordings must be recognizable by the consumer. Refund and cancellation policies, as laid out by the website, must be accurately followed by customer support.

Fulfillment Services

Finally, the new guidelines indicate best practices for fulfillment services. Products ordered must ship in a timely manner. Generally this indicates shipping within 48 hours. A clearly stated customer service number must be included in the product invoice sheet or confirmation email. The cancellation/refund policy must be included with the shipment. Providing the tracking number with the shipment is recommended.

Contact an apogeeINVENT representative in order to make sure your site complies with these new guidelines. If you have any concerns or questions, apogeeINVENT will provide assistance for clients to ensure their sites follow the best practices for direct marketers.