$25,000 Lawsuit Caused by Missing Website Legal Forms

Website Legal FormsDo you have the necessary website legal forms displayed on your website? You may not be aware, but there are laws in place that require you to have certain legal documents in place on your website.  You could get a fine of up to $25,000 for missing only one document.  The Federal Trade Commission (FTC) is really cracking down especially on online marketing or internet marketing websites. Not knowing what is required is not a valid excuse.

The types of documents that may be applicable to your website include: Privacy Policy, Website Disclaimers, Disclosures, Terms Of Use, Income Disclaimers, etc.  I will describe the typical documents that are required on most sites.

Compensation and Affiliation Affidavit

If you promote other people’s products, you must divulge any affiliation with the company or products you are promoting.  This affidavit should appear in the footer of your website.  A link to this affidavit should also appear under the product you are endorsing.  If you are promoting Amazon products, they have very specific requirements.  You can read the article, “Is Your Amazon Account At Risk?” to learn about the specific Amazon requirements.

If you are selling your own products and include testimonials, you must also include a Compensation and Affiliation Affidavit. You must disclose if any of the people giving testimonials received a complimentary review copy, any compensation or if they are affiliates for the products.

Contextual Advertising Compensation Affidavit

If you have Google Adsense or any other contextual advertising on you site, then you must include a Contextual Advertising Compensation Affidavit. This affidavit informs people that you receive compensation if they click on ads on links.

Video Disclaimer

If you use video on your site such as a video sales letter, a video promoting or a product or just an informative video, you need to include a Video Disclaimer.  This should be included in videos you upload to YouTube as well.

Blog Disclaimer and Terms Of Service

There are two different disclaimers depending on the intent of your blog.  If you blog promotes any programs, products, informational materials or other sites that are intended to help people make money, you need to include a Blog Disclaimer and Terms of Service with Earnings Disclaimer and Forward Looking Statement.

Privacy Policy

If your website monitors information regarding visitors or collects registration data, you must include a Privacy Policy.

There are really two options for compliance – hire an attorney to draft the documents or use a system that can generate the documents for you.  If you hire an attorney, you need to make sure that the person is familiar with Internet law.  Even if you find an Internet Law expert, you will have to spend between $10,000 and $15,000 for all of the required documents.

I know this all sounds very scary and complicated, but don’t panic yet.  There are ways to comply with the law without spending thousands of dollars. I use a system called Auto Web Law that generates the documents for me.  All you have to do is fill in a few blanks and the documents are generated.  This system includes over 70 documents.  This system makes it very easy to determine what legal forms you must include on your website. To find out more about Auto Web Law, you can watch a video that describes the system. Please leave a comment to let me know how you comply with the legal documents that are required for your website.


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