Will California Kill Affiliate Marketing?
Affiliate marketers are bracing themselves for what could be a profound change to their businesses when California's new spam law take effect on January 1. The new legislation stipulates that to send commercial e-mail, one must either have a prior business relationship with the recipient or have obtained direct consent to mail. What has companies in the affiliate space worried is the definition of "direct consent." If a merchant's affiliate partner sends commercial e-mail on its behalf, even presuming he uses an opt-in list, could that be construed as violating the new rules? The question is, what is the definition of direct consent? It remains to be seen whether a lawsuit could succeed in holding a company responsible for the e-mail practices of its affiliate advertisers. It seems likely that this idea will soon be tested, though, since the new law gives individuals the right to sue, and the brand-name companies, rather than the often-tiny affiliates, are the ones with the money worth suing for. The problem stems from the fact that affiliate programs are arguably the most chaotic form of legitimized marketing on the Web. With so many affiliates out there deputized to market companies' products, it's difficult for the companies, or even affiliate networks, to keep track of all of their activities. It's no wonder that many companies in the pay-for-performance arena are nervous about the potential liability issues of the new spam law. [Full story: Is California Killing Affiliate Marketing? - Internet News]
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