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Best Practices

What Every Marketer Needs to Know to Fuel Growth Safely and Legally

Claire Milazzo
September 3, 2019
Marketing Compliance

Every day, you are churning out content that will go in front of hundreds, thousands, or perhaps even millions of viewers. You hope your content will generate leads and successful conversions here and there, but before you set it live, have you thought about whether or not it breaks any laws?

Whether you want to be the next Gary Vaynerchuk or Joe Pulizzi, you must take heed of marketing regulations-unless you’re willing to pay costly settlements with the government. Here’s what you need to know about marketing and compliance.

Be Proactive

In 2019, we saw CEC’s $30 million settlement due to their lead generators‘ use of deceptive marketing tactics, Facebook’s unprecedented $5 billion fine by the FTC for deceiving users about their ability to control the privacy of their personal information and Equifax’s $700 million global settlement with the FTC, CFPB and 50 U.S. states for its data breach back in 2017.

The momentum shows no sign of stopping anytime soon.

Marketers need to be in an offensive position, identifying and resolving potential violations before they become issues. This business intelligence, in turn, enables marketing departments to conduct campaigns that minimize risk ahead of time and maximize business growth.

Be Informed

A few common compliance issues that arise for marketers include:

  • Native advertising: Consumers must be able to differentiate this paid messaging from other similarly-formatted content surrounding it.

  • Disclosures: Clear, conspicuous, and accurate disclosures must accompany advertisements’ claims (especially on social media)

  • Unfair, Deceptive, or Abusive Acts and Practices (UDAAP): Companies must not use messaging that misrepresents their products to consumers.

Staying informed of these possible risks as well as changes in compliance policy and law is paramount to avoiding them.

There are many ways to remain in the know. Check communications from agencies, like the CFPB newsroom and FTC press releases, or read blogs from compliance or law firms that specialize in advertising and regulatory issues such as the PerformLine blogAll About Advertising Law and the CFPB Monitor.

Put Your Customer First

Building customer considerations into your marketing risk management program is key to thriving in a customer-centric world.

You can also learn a lot from your competitors’ missteps by reviewing the wealth of information contained in the CFPB Consumer Complaint Database. By doing this, you are taking the proactive steps to avoid making the same mistakes while maintaining focus on customer loyalty.

Learn the risk signals from consumer complaint trends in our latest edition of the Complaint Risk Signal report.

Conclusion

As the number of marketing channels continues to grow, brands are heavily leveraging technology to reach consumers in a more automated, scalable way. As this marketing revolution continues to explode, compliance needs to become front and center in this conversation.

Marketing compliance is another growth opportunity for many organizations and it is playing an increasingly significant role in helping marketers feel more confident and secure in how their messages are being used and disseminated.

When you know how to manage the risk, you are better positioning yourself to take advantage of the growth opportunities.

author avatar
Claire Milazzo Vice President of Marketing
Claire is the Vice President of Marketing at PerformLine.

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