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The Legality of Affiliate Marketing

Profile photo of Ann Submitted by Ann July 7, 2014 Website :

Affiliate marketing is still somewhat of a new concept, even though its roots can be traced back to the 1990′s when retailers created platforms in order to analyze third-party online referrals in order to provide financial commissions for sales. Remember what the online world was like in 1995? While commissionable transactions were nothing new even in the year Clueless first came out, turning such a time tested model into one that fit into a blossoming digital era was a challenge.

First of all, there were no geo boundaries for the US tax nexus to oversee. There were marketing rights found in other countries and as in person transactions faded into the abyss, lawmakers began scrambling to make sense of it all. Now, online (only) retailers are booming but they also need to know what kind of legal issues they may face. So far, no clear legislation has been made to keep up with an ever-changing eCommerce industry, but there are three primary legal concerns retailers and affiliate marketers should consider more closely.

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6 Responses to “The Legality of Affiliate Marketing” Leave a reply ›

  • Profile photo of Metz Profile

    In the advertisement arena, Affiliate marketing is one of the hot topics. It’s good to read about Affiliate marketing and to know the legacy and the changes and so one since the day it was created.

    Tackling affiliate disclosure – I had read the news about this, actually. It was interesting news I must say and it is helpful to marketers to be keener. The full story could be read at Lesley Fair’s blog post which in titles “Endorsements & Affiliate Marketing: The Legacy Learning Systems Order”.
    Metz recently posted…What Is the Best Content Curation Website?My Profile

  • Profile photo of Sunday William Profile

    The legality of affiliate marketing, just like other types of online marketing, will be dependent on the geography. There are places that put more emphases on what constitute effective legislation. The Anti-Spam Legislation in Canada provides us with new perspective on what regions be doing with regards to legislation!
    Sunday William recently posted…See Who Is Calling From Your Computer And Smartphone Before You Answer (Klink App)My Profile

  • Profile photo of UyaQ Profile

    Affiliate marketing is indeed a new concept, but it is actually kind of marketing that was held since the past. Since the beginning of the actual standing of this has implemented this system, affiliate marketing was applied indirectly.

    Well, nowadays affiliate marketing back into the hot news. Because of its success to make money is effective. However, most people take individual advantages and they scam their members.

    This is what should be considered by the competent authorities within a country. Affiliate marketing system is legal. But certain individuals or companies who use this system must be closely monitored, to keep its legality.

    Thanks for sharing with us.

  • Profile photo of Gangadhar Kulkarni Profile

    Great information regarding affiliating marketing with its history as well……..!!!

    Because generally we thought that affiliate marketing started since 10-15 years before but this article explore total journey of affiliate marketing till date.

    we get more knowledge about affiliate marketing legislation rules, taxation as well as info about Federal Trade Commission (FTC) via this article.

    The total article is focused on legality of affiliate marketing and we learn more new things which are only heard but not having correct information.
    Gangadhar Kulkarni recently posted…Overview of Content Management Systems (CMS) and its Influence on SEO EffortsMy Profile

  • Profile photo of rohan bhardwaj Profile

    Interesting, the owner of the digitalpointforum just got served for playing with the affiliate system. Once one finds a nice way to earn, they often try to find loopholes and earn more or skip the fees.

    The taxes are definitely very tough to collect.

    I see many high end bloggers stating the affiliate disclosure. Also the big advertising agency now requires a disclosure of their products before being displayed.

    The bottom line, don’t play with the rules.
    rohan bhardwaj recently posted…Quick MoneyMy Profile

  • Profile photo of Emmanuel Kabenlah Profile

    So is this what Affiliate marketing is made up of? Untangling those tax issues just made head spin in circus.

    That was a great piece there and there is no doubt the likes like myself learnt a lot through it.
    Emmanuel Kabenlah recently posted…Why the Likes of Facebook will be Begging for us to Stay?My Profile

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