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Navigating the Latest in AI and Marketing Regulations

Affiliate Marketing Compliance
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Compliance, Guest Posts, Industry News and Events

Navigating the Latest in AI and Marketing Regulations

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AI Regulations in Marketing

AI’s role in marketing is under increasing scrutiny, with several regulations shaping its use:

  1. FTC Guidelines: Emphasize transparency and truthfulness in AI-generated content.
  2. GDPR: Enforces strict data protection standards in the EU.
  3. CCPA: Similar to GDPR, it mandates transparency in data collection and usage in California.
  4. Executive Orders: Recent U.S. guidelines stress safe, secure, and trustworthy AI development.
  5. Industry Guidelines: Focus on avoiding bias and ensuring transparency.

Affiliate Marketing Regulations

Affiliate marketing is also impacted by various regulations aimed at ensuring ethical practices:

  1. FTC Guidelines: Require clear disclosure of material connections between affiliates and promoted products.
  2. GDPR and CCPA: Enforce strict data privacy and transparency requirements.
  3. CAN-SPAM Act: Sets rules for commercial emails, ensuring transparency.
  4. State Laws: States like New York have specific disclosure requirements for online advertising.

State-Level Changes Affecting Affiliates

Recent updates to state regulations include:

  1. California: The CPRA enhances consumer privacy rights and imposes stricter data usage requirements.
  2. New York: New guidelines mandate clearer disclosures of affiliate relationships.
  3. Colorado: The CPA emphasizes transparency and consumer rights in data handling.

Potential Changes Under the Trump Administration

With the Trump administration potentially returning, the FTC’s approach to marketing regulations might shift:

  1. Less Stringent Enforcement: Possible reduction in enforcement intensity.
  2. Focus on Traditional Fraud: Continued targeting of clear fraud and deceptive practices.
  3. Changes in Leadership and Priorities: New leadership could shift regulatory focus.
  4. Potential Delays in New Regulations: Slower implementation or modification of new rules.

Impact on Influencer Marketing

Influencer marketing could see several impacts from these regulatory changes:

  1. Reduced Enforcement: Less stringent handling of disclosure non-compliance.
  2. Focus on Clear Fraud: Continued targeting of blatant misleading advertising.
  3. Changes in Disclosure Requirements: Potentially more flexible interpretation of disclosure rules.
  4. New Guidelines: Introduction of more business-friendly guidelines.

Private Right of Action in FTC Regulations

While the FTC generally does not provide a private right of action, some related laws do:

  1. Telemarketing Sales Rule (TSR): Allows private lawsuits for unauthorized billing.
  2. Fair Credit Reporting Act (FCRA): Permits individuals to sue for violations.
  3. State “Little FTC Acts”: Many states have consumer protection laws with private rights of action.

States with “Little FTC Acts”

Several states have “Little FTC Acts” that include a private right of action, such as:

  • California
  • Hawaii
  • Illinois
  • Indiana
  • Maryland
  • Michigan
  • Minnesota
  • New York
  • North Dakota
  • Oregon
  • Rhode Island
  • South Dakota
  • Virginia
  • Washington
  • Wisconsin

These laws empower consumers to seek redress for unfair or deceptive practices directly.

The information on this page, and related links, is provided for general education purposes only and is not legal advice.

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Gayla Huber

Gayla Huber, President, IntegriShield, brings two decades of expertise to advise clients across multiple industries in challenges related to compliance, regulations, brand management, lead generation and data analytics. Her affiliate management background gives her compliance monitoring clients insights into lead generation activities and a unique approach to solving marketing issues. For over a decade she has been leading innovation and developing new technology to support highly regulated industries. Dedicated to the growth of her client’s industries, she provides compliance expertise, self-regulation programs, and training for their employees and partners.
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