As the year draws to a close, it’s essential for affiliates and managers to review their compliance practices to avoid legal risks and ensure they’re meeting industry standards.
Regulations around data privacy and advertising disclosures are increasingly stringent, and non-compliance can lead to penalties and damage to a brand’s reputation.
Below are key compliance considerations to address before year-end, covering areas like FTC regulations, GDPR, and other international privacy laws.
FTC disclosure requirements
The Federal Trade Commission (FTC) has specific guidelines for affiliate marketing, requiring clear and conspicuous disclosures when promoting products or services in exchange for compensation. The goal is to ensure transparency, so consumers understand that affiliates may receive commissions on sales generated through their recommendations.
To stay compliant, affiliates should place these disclosures where they’re visible to consumers before any purchase decisions are made.
For social media, disclosures like “#ad” or “#sponsored” are generally considered acceptable. On blogs or websites, language such as “I may receive a commission for purchases made through links on this site” should appear at the beginning of a post or near the relevant links. Affiliates must avoid placing disclosures in hard-to-spot areas or in ways that might mislead consumers.
In short, transparency is key—if there’s any doubt, it’s best to disclose.
GDPR and data privacy
If you’re reaching an audience in the European Union, compliance with the General Data Protection Regulation (GDPR) is essential. GDPR focuses on data privacy and security, with strict guidelines on how personal data is collected, processed, and stored.
Affiliates who collect user data, even indirectly, are expected to follow GDPR rules.
One of the GDPR’s main requirements is obtaining clear consent from users before collecting their data. This includes using cookies or tracking tools that monitor user behaviour.
Affiliates must inform users about what data is being collected, why it’s collected, and how it will be used. If your site uses cookies, a simple banner allowing users to accept or decline cookies can help you stay compliant.
GDPR also requires that users have the option to withdraw their consent and that their data is securely stored. It’s crucial to have a process in place for users to request access to or deletion of their data.
For affiliates, it’s also a good idea to work with affiliate networks or platforms that are GDPR-compliant to avoid any liability issues.
California Consumer Privacy Act (CCPA)
For affiliates targeting audiences in the United States, the California Consumer Privacy Act (CCPA) is worth noting. The CCPA provides California residents with rights over their personal data, including the right to know what data is collected, the ability to request deletion, and the right to opt-out of data sales.
Under the CCPA, affiliates must disclose what personal data they collect and why, similar to GDPR requirements. For example, if you use cookies for tracking, users need to be informed of this practice, and California residents must be given an option to opt-out.
The CCPA also includes strict rules on selling personal data, so affiliates who work with third-party networks should ensure their partners comply with the law.
CCPA requirements are easier to manage with tools like cookie consent banners and opt-out links on your website. For affiliates who collect or store customer data, it’s also recommended to review your data handling and storage practices to ensure you’re meeting CCPA standards.
International privacy laws
Aside from GDPR and CCPA, other regions have their own privacy regulations, such as Canada’s Personal Information Protection and Electronic Documents Act (PIPEDA) and Brazil’s Lei Geral de Proteção de Dados (LGPD). Affiliates operating internationally should familiarise themselves with these laws to avoid non-compliance, especially when targeting audiences in specific countries.
PIPEDA requires affiliates to obtain consent before collecting or sharing personal data and applies similar data protection rules to GDPR. Brazil’s LGPD, inspired by GDPR, also imposes strict requirements on consent and data processing.
For affiliates working across borders, keeping track of each region’s regulations can seem challenging, but partnering with GDPR-compliant networks and reviewing privacy policies can help.
COPPA for children’s online privacy
If you’re promoting products to younger audiences, the Children’s Online Privacy Protection Act (COPPA) mandates special handling of data related to children under the age of 13. Affiliates need to avoid collecting personal information from this age group without verified parental consent.
This applies to data collection practices involving cookies, geolocation, and other forms of tracking.
COPPA also requires clear and easy-to-understand privacy policies that explain how data is collected, used, and shared. Affiliates working in sectors that attract younger audiences—like gaming or children’s toys—should take extra care to ensure compliance with COPPA.
Staying transparent with audiences
Transparency goes beyond just following the rules. Consumers appreciate brands and affiliates that are open about their practices, which can help build trust and strengthen loyalty.
Along with legal compliance, providing clear information about your data practices and affiliate relationships can foster a positive experience for your audience.
Regularly reviewing and updating your privacy policy to reflect your current practices is a good step. Make sure your audience can easily find this information on your site and encourage feedback to keep communication open.
Year-end compliance checklist for affiliates
As the year ends, take a moment to audit your practices to ensure everything is up to date. Here’s a quick checklist for staying compliant:
- Review disclosures: Ensure all affiliate links have clear disclosures that are easy for consumers to spot.
- Check privacy policies: Update your privacy policies to align with GDPR, CCPA, or any other relevant laws, and make them easily accessible.
- Ensure consent for data collection: Implement cookie banners and opt-out options for tracking to meet consent requirements.
- Work with compliant networks: Partner with networks and platforms that prioritise compliance with data privacy laws.
- Audit data handling practices: Confirm that all personal data collected is securely stored and that you have procedures for data deletion requests.
Preparing for compliance now will set you up for success and avoid any last-minute headaches. By taking these steps, affiliates can end the year on a strong note and build a solid foundation for the future.
