Marketing on the Internet: Legal Rules of the Road

Written by Richard A. Chapo

Continued from page 1

Other points to consider:

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

Testimonials and endorsements must reflectrepparttar 149633 typical experiences of consumers, unlessrepparttar 149634 ad clearly and conspicuously states otherwise. A statement that not all consumers will getrepparttar 149635 same results is not enough to qualify a claim. Testimonials and endorsements can't be used to make a claim thatrepparttar 149636 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 tellrepparttar 149637 consumerrepparttar 149638 terms ofrepparttar 149639 offer.


If you fail to follow these rules, you runrepparttar 149640 risk of being prosecuted byrepparttar 149641 FTC. Successful prosecutions typically result in injunctions against your site and damages awarded inrepparttar 149642 amount of $11,000 PER VIOLATION.

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Internet Partnerships - Donít Throw Away Your Business

Written by Richard A. Chapo

Continued from page 1

Mark and Programmer are still open to liability onrepparttar "back end". Without realizing it, each trustsrepparttar 149632 other to properly run their independent businesses. Why is this?

Assume that Mark and Programmer followrepparttar 149633 above plan andrepparttar 149634 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 soldrepparttar 149635 program also sue him. The trial goes badly and Programmer is found liable torepparttar 149636 tune of $750,000.

Guess what happens next? Since he is a sole proprietor, Programmer's interest inrepparttar 149637 joint business with Mark is seized to satisfyrepparttar 149638 judgment. Alternatively, he files personal bankruptcy. Either way, Mark is involuntarily going to have a new business partner that probably canít program! In short, we are talking about a disaster.

How To Protect Yourself

Business entities arerepparttar 149639 key to limiting your exposure to liability. Inrepparttar 149640 above situation, Mark and Programmer should ownrepparttar 149641 joint company as individuals, but they should form business entities for their personal businesses. Ifrepparttar 149642 personal businesses are sued, their individual ownership ofrepparttar 149643 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 limitrepparttar 149644 potential damage of a lawsuit involving one ofrepparttar 149645 businesses.

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