Hear from regulators and industry insiders on critical legal issues facing affiliate marketers today, including advertising practices, affiliate liability, and enforcement priorities. Jeffrey Greenbaum, Partner, Frankfurt Kurnit Klein & Selz PC (Twitter @jeffgreenbaum) (Moderator) Leonard Gordon, Director, Northeast Region, Federal Trade Commission David Graff, General Counsel and Sr. Vice-President, Corporate Development, Epic Advertising Peter Marinello, Director, Electronic Retailing Self Regulation Program, Council of Better Business Bureaus

1. The Electronic Retailing Self-Regulation Program(“ERSP”)Peter Marinello, ERSP Director

3. ERSP Policy and Procedures Direct Response Advertising 60 Calendar Days Primary and Core Claims Anonymous Challenges Determination as to whether substantiation appears reasonable on its face

4. Self-Regulatory Goals Improve/restore consumer confidence in electronic retailing. Provide a quick and efficient mechanism for reviewing “high profile” advertising campaigns Effectuating the discontinuance of DRTV and other advertising and marketing materials that contain egregious, unsupported efficacy and/or performance claims. Demonstrate to the FTC, the direct response industry’s commitment to strong self-regulation and compliance with legal requirements.

5. Over the past few years, ERSP has examined many types of claim substantiation: “The World’s Fastest Weight-Loss Solution” - Testimonials/Endorsements - Before and After Depictions - Weight Loss - Health and Safety - Establishment Claims - Disclosures - New Media - Puffery - Demonstrations ““Lose 287% the weight compared to placebo” “Within 7 days my acne completelydisappeared” The #1 Doctor Recommended Joint Supplement” ‘The Clinically Proven Weight Loss Supplement!”

6. Objective claims for products or services represent explicitly or by implication that the advertiser has a reasonable basis supporting these claims. The Commission's determination of what constitutes a reasonable basis depends, as it does in an unfairness analysis, on a number of factors relevant to the benefits and costs of substantiating a particular claim. These factors include: the type of claim, the product, the consequences of a false claim, the benefits of a truthful claim, the cost of developing substantiation for the claim, and the amount of substantiation experts in the field believe is reasonable.

7. RAPID SHAVE

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11. Clinically Proven Ingredients

12. CLINICALLY PROVEN CLAIMS Reliable and Competent Evidence “…test, analysis, research, studies or other evidence based upon the expertise of professionals in the relevant area that has been conducted and evaluated in an objective manner by persons qualified to do so, using procedures generally accepted in the profession to yield accurate and reliable results.”

13. CLINICAL TESTING DATA Independently conducted (double-blind; placebo controlled) Adequate sample size Conducted over a reasonable period of time Statistically Significant results Claims = Data

16. “ The FTC would like to acknowledge that the products at issue in this case were the subject of a referral to the agency from the Electronic Retailing Self-Regulatory Program. ”

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