Creating Business Practices That Support Longevity and Success

Chapter One Legal Practices to Protect Your Company and Your Customers

Legitimate companies like Weight Watchers, who didn't over hype and provided a clear and genuine service.

Companies that exaggerated customer benefits and misrepresented how they were going to be billed.

When the FTC got involved, many of these illegitimate businesses were shut down. In addition, many of their owners were forced to pay millions, even tens of millions of dollars in fines.

To make sure that didn't happen again, the FTC changed their advertising rules to say that you could only use testimonials that represented common results, not uncommon results.

Almost overnight, an entire industry was put under water. The only people who survived were those who operated with truth and honesty and provided a genuine service to their customers.

If you're to succeed in business, it's crucial that you make sure you're truthful in your advertising and that you're not misleading your customers in any way.

Disclosure will have a direct effect on your published policies and practices. It'll play a role in your communications, shopping cart systems and even your autoresponders.

Disclosure is defined as "A company's release of all information pertaining to the company's business activity, regardless of how that information may influence investors." (http://financial-dictionary.thefreedictionary.com/Disclosure)

Disclosure affects many aspects of your business. It relates to:

Information About Your Business

You'll want to disclose basic information about you, including:

· Your legal name and the name under which you do business, if different.

· Your address and a method of contact. For example, your email address or a telephone number.

Your domain name registration should also reflect accurate and up to date information.

This information will likely be communicated on everything you publish, including your website, information products, autoresponders and any other communications.

Transactions – Information and Terms

Online transactions, including any forms, questionnaires and purchases, need to be communicated clearly and effectively.

You'll want to disclose any material information about the online transaction including:

Terms of the transactionProduct availability/shipping informationPrices and customer costs

You'll also want to give your prospect or customer an opportunity to review and approve the transaction and to receive a confirmation. This works for both monetary and non-monetary transactions.

Think about your opt-in process, for example. Do you provide your prospects with all of the information they need to know about the transaction? Do you give them the opportunity to review their decision before committing, a double-opt in? Do you provide them with a confirmation?

You'll also want to disclose the following as it relates to the terms of the online transaction: (Provided by the Better Business Bureau Code of Conduct for Online Businesses )

Any restrictions or limitations (for example, time or geographic) they impose on the sale of the goods or services; Easy-to-use payment mechanisms; Return or refund policies, including how customers can make returns or exchanges; obtain refunds or credits; or cancel a transaction; and any associated time limitations or associated fees;. For products, any warrantees, guarantees, escrow programs or other offered terms, including limitations, conditions, if any; For services, any material standards, schedules, fees, or other offered terms, including limitation and conditions; For contests, sweepstakes or other similar promotions, the complete rules adjacent to, or in a hyperlink or similar technology adjacent to, the promotion itself; and For ongoing transactions or subscriptions: Information about how the transaction will appear on the bill so that the customer can easily identify the business and the transaction on the bill. Easy-to-understand cancellation information, an easy to use means to cancel an ongoing subscription and timely confirmation of such cancellation.