Other points to consider:

Disclaimers and disclosures must be clear and conspicuous. That is, consumers must be able to notice, read or hear, and understand information. Still, a disclaimer or disclosure alone usually is not enough to remedy a false or deceptive claim.

Testimonials and endorsements must reflect typical experiences of consumers, unless ad clearly and conspicuously states otherwise. A statement that not all consumers will get same results is not enough to qualify a claim. Testimonials and endorsements can't be used to make a claim that advertiser itself cannot substantiate.

If your ad uses phrases like "satisfaction guaranteed" or "money-back guarantee," you must be willing to give full refunds for any reason. You also must tell consumer terms of offer.

Non-Compliance

If you fail to follow these rules, you run risk of being prosecuted by FTC. Successful prosecutions typically result in injunctions against your site and damages awarded in amount of $11,000 PER VIOLATION.

Mark and Programmer are still open to liability on "back end". Without realizing it, each trusts other to properly run their independent businesses. Why is this?

Assume that Mark and Programmer follow above plan and business is very profitable. One day, Programmer is served with a lawsuit claiming that he violated copyright laws with a program that he developed before meeting Mark. The nine companies to which he sold program also sue him. The trial goes badly and Programmer is found liable to tune of $750,000.

Guess what happens next? Since he is a sole proprietor, Programmer's interest in joint business with Mark is seized to satisfy judgment. Alternatively, he files personal bankruptcy. Either way, Mark is involuntarily going to have a new business partner that probably can’t program! In short, we are talking about a disaster.

How To Protect Yourself

Business entities are key to limiting your exposure to liability. In above situation, Mark and Programmer should own joint company as individuals, but they should form business entities for their personal businesses. If personal businesses are sued, their individual ownership of joint venture entity is shielded from attachment.

As a general rule, you should form an individual business entity for each business you own. By doing so, you are better able to limit potential damage of a lawsuit involving one of businesses.