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Friday, May 10, 2013

ERSP Refers Advertising for Richatlast.com to FTC for Further Review After Marketer Fails to Respond to ERSP Inquiry



The Electronic Retailing Self-Regulation Program (ERSP) will refer direct response advertising for Richatlast.com Affiliate Marketing Program to the Federal Trade Commission (FTC) after the marketer, Richatlast.com, failed to respond to an ERSP inquiry.

ERSP is an investigative unit of the advertising industry’s system of self-regulation and is administered by the Council of Better Business Bureaus. The marketer’s advertising came to ERSP’s attention pursuant to its ongoing monitoring program.

Claims at issue in the initial inquiry included:

  • How would you like to get a bunch of $500 bills poured directly into your pocket every single day?”
  • “With this easy-to-do system, anyone (even YOU!) can make well over $100,000 a month!”
  • “That's right! Just fill out the form below, and learn how to instantly start making $1497 per day with a simple cheap postcard campaign, and YES I mean PER DAY!”
  • “There has never been an easier-to-do Internet business than this!”
  • “IMPORTANT! You only have a little while remaining before this offer is closed"

Pursuant to the ERSP Policies and Procedures, after failing to provide a  substantive response to ERSP’s original inquiry within fifteen calendar days, the marketer was afforded a second ten-day period in which to submit a substantive response. The marketer did not do so. Pursuant to ERSP Policies and Procedures, this matter has been referred to the FTC.

Wednesday, May 8, 2013

ERSP Recommends Coffee Shop Millionaire Discontinue Certain Claims for Lead-Generation Program; Company Agrees to Do So


The Electronic Retailing Self-Regulation Program (ERSP) has recommended that Coffee Shop Millionaire Education, Inc. modify or discontinue certain claims for the company’s “Coffee Shop Millionaire,” a lead-generation affiliate marketing business.

ERSP is an investigative unit of the advertising industry’s system of self-regulation and is administered by the Council of Better Business Bureaus. The marketer’s advertising came to the attention of ERSP pursuant to its ongoing monitoring program.

ERSP reviewed online advertising for the Coffee Shop Millionaire system and identified several claims for review, including:
  • "How a Flip-Flop Wearing Bum At A Coffee Shop Drives Luxury Sports Cars & Rakes In As Much As $3,846,373 A Year"
  • "You don’t need ANY technical experience.”
  • "You need to act fast or you will miss out. And if you decide to come back later? You’ll probably be too late.”
  • "Anthony…I can’t thank you enough for the $21k cash machine. I made more with your system in a matter of weeks than I had made in my entire previous 18 months online. Plus I continue to make money every week like clockwork when I mail the list I build using the system.”
Techniques addressed include, but are not limited to, internet and mobile applications, affiliate marketing, search engine optimization, social media, article marketing, joint venture partnerships, product launches, new product creation, list building and monetizing,  and local marketing. The marketer asserted that the cost for these materials was 10-30 times less than for competing products.  

The marketer explained that consumers gain access to the information by purchasing a subscription to the service at coffeeshopmillionaire.com for a one-time fee. Once a member, subscribers have access to a variety of information and resources and are provided fully-developed products and corresponding rights to resell them. Products include, but are not limited to: “The Bible of Bodybuilding,” “The Most Important Guide on Dieting and Nutrition in the 21st Century,” and “Sleeping Sanctuary: Salvation for the Sleep Deprived."

The advertising at issue featured a disclaimer that stated in part: “Any reference to, or income examples from, my businesses and/or the examples of others are exceptional results, which do not apply to the average person and are not intended to represent or guarantee that anyone will achieve the same or similar results.”

ERSP recommended that the marketer discontinue use of the disclaimer in conjunction with testimonials and earnings claims that indicate consumers can make large sums of money quickly and easily. Further, ERSP recommended the marketer the amount of money that consumers can generally expect to earn based upon reliable program usage data it has received from consumers.

Given the absence of evidence in the record, ERSP recommended the marketer discontinue claims that indicate users of the system can earn money quickly, easily, and with little or no computer skills.

ERSP was additionally concerned with the lack of disclosure language to explain to potential customers that technical skills (i.e., how to build a website using HTML or how to host it) are not necessary because those are types of services that outside vendors may perform. While ERSP understands the marketer’s position that the techniques conveyed in Coffee Shop Millionaire assist users in identifying vendors who can perform the services that require technical expertise, ERSP nevertheless recommended that the marketer add clear and conspicuous disclosure language to more accurately convey these details to customers.

Finally, ERSP recognized the marketer’s voluntary removal of claims that formed the basis of this inquiry, such as:
  • “How a Flip-Flop Wearing Bum At A Coffee Shop Drives Luxury Sports Cars & Rakes In As Much As $3,846,373 A Year!”
  • “People are making anywhere from a couple hundred dollars a day, to as much as $10,000 a day from their laptops, iPads and even cellphones.”
The company, in its marketer’s statement, said that it is in the process of modifying its advertising to addresses the ERSP’s concerns.

Wednesday, April 3, 2013

ERSP Finds Sleep Science Partners Can Support Performance Claims for ‘PureSleep,’ Recommends Marketer Discontinue Certain Claims

The Electronic Retailing Self-Regulation Program (ERSP) has determined that Sleep Science Partners provided adequate support for general performance claims made in direct response advertising for PureSleep, a device intended to treat nighttime snoring.

ERSP is an investigative unit of the advertising industry’s system of self-regulation and is administered by the Council of Better Business Bureaus. The marketer’s advertising came to the attention of ERSP pursuant to its ongoing monitoring program. 

ERSP reviewed online advertising for PureSleep and identified several claims for review, including:
  • “Proven to Work!”
  •  “PureSleep Stop Snoring Solution”
  • “PureSleep is a comfortable, self-molded mouthpiece that holds your jaw slightly forward, opening the airway so that the snoring stops.”
  • “It opens your airway and eliminates the vibrations we all know as snoring. No vibrations, no snoring!”
  • “PureSleep is guaranteed to stop your snoring right away.”
  • “Dentist Recommended and Safe”
  • “The #1 Selling Snoring Solution in the World”
During the course of ERSP’s inquiry, SSP informed ERSP that would voluntarily remove the claim, “No vibrations, no snoring.”

Following its review of the evidence in the record, including clinical studies on mandibular repositioning devices, ERSP determined that MRDs have been demonstrated to be successful in reducing snoring in certain users. ERSP noted that it had no objection to general performance claims, such as “Proven to Work!”

While ERSP agreed that PureSleep could help reduce snoring for some individuals, ERSP was not convinced that the cessation of snoring could be considered typical product performance. ERSP recommended SSP modify or discontinue snoring cessation claims.

ERSP further recommended that SSP modify or discontinue its “#1 Selling” claim, given the absence of evidence that PureSleep outsells all relevant competitive products in the industry.
Finally, ERSP concluded that the marketer provided a reasonable basis for its “Dentist Recommended” claim.

The company, in its marketer’s statement, said “SSP strongly supports ERSP’s goals and has always ensured its representations are factual and that its customers are satisfied … SSP appreciates ERSP’s detailed review and recommendations and will take them all into account when designing future advertising communications.”

Tuesday, April 2, 2013

ERSP Finds Innerthrive Can Support General Performance Claims for ‘Ultimate Natural Testosterone System,’ Recommends Marketer Discontinue Certain Claims


The Electronic Retailing Self-Regulation Program has determined that Innerthrive, LLC, can support general performance claims for Ultimate Natural Testosterone System, a dietary supplement intended to increase testosterone levels. However, ERSP recommended the marketer modify or discontinue certain claims and consumer testimonials.

ERSP is an investigative unit of the advertising industry’s system of self-regulation and is administered by the Council of Better Business Bureaus.The marketer’s advertising came to the attention of ERSP pursuant to an anonymous competitive challenge. 

ERSP reviewed online advertising for UNTS and identified several claims for review, including: 
  • “More sex drive, muscle tone, strength, and energy.”
  • “Healthy, Natural Testosterone Like When You Were in Your 20’s!”
  • “Find out How to Increase YOUR Testosterone Up to 71% Naturally”
  • Will you see results in the first 3 weeks of your testosterone program? OF COURSE. You might experience more energy, an increase in libido, and loss of belly fat.”
  • Participants in a clinical study using a similar method saw an increase in testosterone of 71 percent naturally, with results in as little as 3 days.”
  • Ron from Florida increased his Testosterone 87% in 90 Days!”; “Chris from Colorado Increased his Testosterone 225% in 90 days!” and “After Starting with the Ultimate Natural Testosterone System, Nick Increased his Testosterone Baseline 316% Month-After-Month!”
During the course of the inquiry, Innerthrive indicated that it had discontinued several of the performance and establishment claims  that formed the basis of the inquiry, including “Will you see results in the first 3 weeks of your testosterone program? OF COURSE. You might experience more energy, an increase in libido, and loss of belly fat.” 

The marketer also informed ERSP that it was currently reformulating the product. Since Innerthrive did not represent that these claims would be permanently withdrawn, ERSP continued with its analysis of the claims currently being disseminated on the product website.

 Following its review of the evidence in the record, ERSP determined that the clinical tests submitted provided a reasonable basis for the general performance claim stating “More sex drive, muscle tone, strength, and energy.” However, while ERSP found support for mechanism of action claims, it strongly encouraged Innerthrive to consider removing these claims as the reformulation of the product may have a significant effect on the performance of the product.

 ERSP also remained concerned about claims promising quantified results (e.g., “Find out How to Increase YOUR Testosterone Up to 71% Naturally”). ERSP recommended the marketer immediately discontinue these claims as the case record did not contain adequate substantiation.

 In its review of the consumer testimonials at issue, ERSP was unable to locate a disclosure indicating the typical results consumers can generally expect to achieve while taking UNTS. Accordingly, ERSP recommended Innerthrive discontinue the use of testimonials in the context in which they are currently presented.

The company, in its marketer’s statement, said “Innerthrive, LLC welcomes and appreciates ERSP’s thorough and thoughtful review of the advertising for its Ultimate Natural Testosterone System (“UNTS”). At such time when and if we resume advertising in the future, we will take ERSP’s conclusions and helpful recommendations into account in developing our advertising.”

ERSP Refers Advertising for ‘Mini Site Formula ‘Affiliate Marketing Program to FTC for Further Review


Marketer Fails to Respond to ERSP Inquiry

The Electronic Retailing Self-Regulation Program (ERSP) will refer direct response advertising for The Mini Site Formula Affiliate Marketing Program to the Federal Trade Commission (FTC) after the marketer, The Info Marketing Group, Inc., failed to respond to an ERSP inquiry. 

ERSP is an investigative unit of the advertising industry’s system of self-regulation and is administered by the Council of Better Business Bureaus. The marketer’s advertising came to ERSP’s attention pursuant to its ongoing monitoring program. 

Claims at issue in the initial inquiry included:
  • “I’ve made as much as…$253,741.99 In A Single Month"
  • “I reveal the secret between making a few bucks a month and making $253,741.99 In A Single Month!"
  • “…start making money right from day one.” 
  • “Money Will Never Be A Concern Again” 
  • “Made over $400,000 using the formula…he just built this cabin.” [Darryll Gilliland] 
  • “Makes Thousands of Dollars Building Mini Websites” [John Jonas] 
Pursuant to the ERSP Policies and Procedures, after failing to provide a substantive response to ERSP’s original inquiry within fifteen calendar days, the marketer was afforded a second ten-day period in which to submit a substantive response. The marketer did not do so. Pursuant to ERSP Policies and Procedures, this matter has been referred to the FTC.

Friday, March 29, 2013

ERSP Recommends Affiliate Marketer ‘YES International’ Discontinue Claims Made in Testimonials; Marketer Agrees to Revise Claims at Issue

The Electronic Retailing Self-Regulation Program (ERSP) has recommended that YES International, LLC (d/b/a Vensure International, LLC and Novus North, LLC) modify or discontinue certain claims for YES International, a lead-generation affiliate marketing business.

ERSP is an investigative unit of the advertising industry’s system of self-regulation and is administered by the Council of Better Business Bureaus. The marketer’s advertising came to the attention of ERSP through a consumer challenge. 

ERSP reviewed online advertising for YES International and identified several claims for review, including:
  • ”Meet Diane. She is one of our clients who has begun to achieve her financial goals. In her first three month she has made $16,000 online.”
  • “I had over $10,000 in sales in December and should be about the same or perhaps higher in January so things are going really well. Monthly profit is coming in at about $6,000 currently.” [Kimberly T.B. Chandler, AZ] 
  • “Not many companies offer UNLIMITED EARNING POTENTIAL. YES International does!” 
ERSP noted in its decision that while affiliate marketing programs began more than a decade ago, the growth of work-at-home and wealth-creation programs has generated increased regulatory scrutiny – particularly on the messages communicated by earnings claims and testimonials. 

Advertisements that feature a consumer and convey that his or her experience with a product or service may be “typical” when that is not the case, are required by the Federal Trade Commission to clearly disclose the results that consumers can generally expect to receive. Accordingly, ERSP noted, marketers should, when using consumer testimonials, either provide substantiation that the consumer’s stated experience is “typical” or, conversely, indicate what the typical result would be given the scenario presented in the testimonials. 

Under FTC guidelines, consumer endorsements “may not contain any representations which would be deceptive, or could not be substantiated if made directly by the advertiser” and must reflect what other consumers can generally expect to experience, ERSP noted. 

In this case, ERSP focused on the testimonials at the Yes International home page (“Meet Diane. She is one of our clients who has begun to achieve her financial goals. In her first three month she has made $16,000 online” and “I had over $10,000 in sales in December and should be about the same or perhaps higher in January so things are going really well. Monthly profit is coming in at about $6,000 currently.” [Kimberly T.B. Chandler, AZ]). 

ERSP requested substantiation from the marketer. The marketer assured ERSP that both testimonials are true and correct, and relate to specific customers, but was unwilling to provide specific information to ERSP relative to these customers. 

In the absence of evidence to support the consumer testimonial claims, ERSP recommended that the marketer discontinue the use of the testimonial earnings claims found on the Yes International home page. 

ERSP then examined the marketer’s Facebook page, which contained the claim “Not many companies offer UNLIMITED EARNING POTENTIAL.” 

ERSP noted that the claim appeared to draw a competitive distinction between Yes International and other affiliate marketing programs. Further, by indicating that earnings potential is “unlimited,” ERSP said, it would not be unreasonable for consumers to believe they could make hundreds of thousands of dollars by using the program. However, there was no disclosure of the typical amount of money users of the program have earned or could expect to earn from using this program. ERSP recommended that the marketer discontinue the claim in this context. 

The challenger in this case asserted that the marketer’s principal officer had registered domain names for a number of other affiliate marketing websites and ERSP did, as part of its review, examine the claims made at sites that included www.onlineprofitmasterssystem.com, www.homeprofitmasters.com, and www.365dailymaster.com. 

In the course of its review, ERSP requested more information regarding the marketer’s relationship to the Domain Registrant; the marketer did not provide any additional information. 

In examining the sites, ERSP noted that each site displayed at least four testimonials. However, the exact text of each testimonial appeared on multiple sites, attributed to different consumers. ERSP recommended that the marketer discontinue the use of such testimonials. 

ERSP remained concerned with the marketer’s assertion that the domains and testimonials had not been used for some time, and that the advertising at issue had been permanently withdrawn from use by the marketer. With the exception of two domains, which ERSP recognized are no longer valid, the remaining domains were still active at the time of ERSP’s review. 

YES International, in its marketer’s statement, said it appreciated “the opportunity to participate in the Electronic Retailing Self-Regulation Program.” The company said it would provide an appropriate disclaimer on its website regarding the testimonials and eliminate from its corporate Facebook page the comparison of its employee compensation to compensation paid to employees of other similarly situated companies. 

Further, the company said, it “will strive to eliminate duplicate or replicated testimonials from any website it operates for the purpose of advertising its services and products, and to ensure that the testimonials are substantiated and do not overstate results from YES’ products and services.”

Monday, February 25, 2013

ERSP Refers Advertising for Super Affiliate Lab to FTC for Further Review, After Marketer Failed to Respond to ERSP Inquiry

The Electronic Retailing Self-Regulation Program (ERSP) will refer direct response advertising for Super Affiliate Lab Affiliate Marketing Program to the Federal Trade Commission (FTC) after the marketer, MarksEnterprise.com, Inc., failed to respond to an ERSP inquiry.

ERSP is an investigative unit of the advertising industry’s system of self-regulation and is administered by the Council of Better Business Bureaus. The marketer’s advertising came to ERSP’s attention pursuant to its ongoing monitoring program. 

Claims at issue in the initial inquiry included:
  • “Become An Over-Paid Super Affiliate Generating Huge Monthly Commission Checks Of Up To $700 - $5,500+ By Simply Sending Traffic To Our Sites!"
  • “People just like you, are making an extra $1,000, $2,500 and even $5,500+ promoting our products!”
  • “…easy way to make money with affiliate marketing…”
  • “…You’ll Make Huge Cash With Our Program”
  • “Sign-Up Today, And You Can Start Making Money As Soon As Tonight!”
Pursuant to the ERSP Policies and Procedures, after failing to provide a  substantive response to ERSP’s original inquiry within fifteen calendar days, the marketer was afforded a second ten-day period in which to submit a substantive response. The marketer did not do so. Pursuant to ERSP Policies and Procedures, this matter has been referred to the FTC.