{"id":204265,"date":"2021-04-01T12:43:23","date_gmt":"2021-03-31T23:43:23","guid":{"rendered":"https:\/\/legalvision.co.nz\/?p=204265"},"modified":"2024-09-18T17:25:02","modified_gmt":"2024-09-18T04:25:02","slug":"legal-tips-for-affiliate-marketing","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/e-commerce\/legal-tips-for-affiliate-marketing\/","title":{"rendered":"6 Legal Tips for Affiliate Marketing in NZ"},"content":{"rendered":"\n<p>Affiliate marketing has become increasingly popular in New Zealand and around the world. In particular, social media influencers and regular people have latched onto this model and have used it to monetise their content or create passive income. <a href=\"https:\/\/legalvision.co.nz\/e-commerce\/advertise-online-business\/\">Affiliate marketing<\/a> is the practice of providing a unique affiliate link to enable individuals to refer their audience to other businesses\u2019 products in exchange for a commission or some form of compensation. This model allows businesses to reach a wider and more targeted audience, depending on the influencer they choose to partner with. In practice, there are three main parties involved in an affiliate network. They are the:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>advertiser;<\/li>\n\n\n\n<li>influencer; and&nbsp;<\/li>\n\n\n\n<li>consumer, who is your audience.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>However, if you are promoting these affiliate links, it is important that you are aware of the laws around affiliate programs and how they might affect your influencer marketing business. This article will explain the applicable laws to affiliate marketing.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is an Influencer?<\/h2>\n\n\n\n<p>You must first understand what an influencer is before looking at how to stay within the law. The <a href=\"https:\/\/legalvision.co.nz\/regulatory-and-compliance\/legal-considerations-advertising-nz-business\/\">Advertising Standards Authority<\/a> defines an influencer as anyone who is paid to promote ad content through digital marketing platforms. The person\u2019s following, or audience size, is irrelevant. Therefore, if you are considered a social media influencer, you must ensure that you follow the legal tips below.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is Considered an Advertisement?<\/h2>\n\n\n\n<p>According to the Advertising Standards Authority, an ad is anything that an advertiser directly or indirectly controls for payment. This includes any affiliate marketing link that you post in exchange for a commission or payment.<\/p>\n\n\n\n<p>Additionally, there are other forms of digital marketing, such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>email marketing;<\/li>\n\n\n\n<li>product reviews; and<\/li>\n\n\n\n<li>blog posts.<\/li>\n<\/ul>\n\n\n\n<p>Depending on the advertiser&#8217;s organisation, commission rates can be quite high. However, high commissions are based on how much the organisation values the influencer&#8217;s marketing.<\/p>\n\n\n\n<p>Alternatively, influencers have the option to earn a percentage of referred customers&#8217; purchases. Depending on the influence on consumers, this type of affiliate marketing can make more money than initial commission rates.<\/p>\n\n\n\n<p>It is important to note that social media posts, sponsored content, and even verbal endorsements can be considered ads if there is a commercial arrangement. Influencers must disclose any material connection to a brand, including free products or services. The key is transparency: consumers should easily identify when content is promotional. Failure to disclose such relationships can lead to legal issues and damage to an influencer&#8217;s credibility.<\/p>\n\n\n    <div class=\"my-7 lg:my-10 border-y-2 border-gray-100 py-7 lg:py-10 flex flex-col sm:flex-row items-start gap-10\">\n                    <img decoding=\"async\" class=\"w-52 mx-auto my-0! rounded\" src=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2021\/12\/22120930\/nguyen-dang-hoang-nhu-dYUQI3dM4R4-unsplash-1-e1640128185702.jpg\" alt=\"Front page of publication\"\n                 loading=\"lazy\" width=\"208\" height=\"298\">\n                <section>\n            <div class=\"text-2xl font-bold\">Cold Direct Email Templates<\/div>\n            <div class=\"body-text\">\n                <p>Drive your sales leads with cold emails that will help you connect with prospective customers. The series includes initial and follow up cold emails that you can incorporate into your sales process. Simply customise them and send them out.<\/p>\n            <\/div>\n            \n\n<a href=\"https:\/\/go.legalvision.co.nz\/cold-direct-email-templates-nz.html\" class=\" block px-5 py-3.5 max-w-fit bg-orange button__hover transition rounded text-white font-bold text-lg no-underline uppercase leading-tight text-center\" target=\"\" rel=\"\">Download Now<\/a>        <\/section>\n    <\/div>\n\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+64800005570\" class=\"not-prose\">0800 005 570<\/a> for 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Labelling Your Ad<\/h3>\n\n\n\n<p>Always make it clear that your link is an ad. This can be done in many ways, but adding a #ad or #gifted label will generally do the trick. The key is to make sure that your audience knows upfront that whatever you are promoting is an advertisement.&nbsp;<\/p>\n\n\n\n<div class=\"box box--info box--icon\">\n<p><span style=\"font-weight: 400\">For example, this means that if you are using an Instagram story to promote your link, the label should be on the first slide of the story. Your audience must also be able to understand the label easily, and it must be separate from any other hashtags or indicators. Trying to hide the fact the post is an ad, can cause you trouble under advertising laws. \n <\/span><\/p>\n<\/div>\n\n\n\n<p><span style=\"font-weight: 400\">Influencers may believe that a blanket label in their profile bio is enough. However, this is not the case, as you must clearly label every separate link as ad content.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Test the Product<\/h3>\n\n\n\n<p>The last thing you want to do is advertise a product that your audience is not happy with. This means making sure that you try the product before displaying an affiliate marketing link. Protecting your reputation as an influencer is important. You could open yourself up to claims of <a href=\"https:\/\/legalvision.co.nz\/regulatory-and-compliance\/what-is-misleading-or-deceptive-conduct-in-new-zealand\/\" target=\"_blank\" rel=\"noreferrer noopener\">misleading advertising or deceptive conduct<\/a> by recommending a product that is completely different to what you advertised, and further, you could be charged.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Research the Company<\/h3>\n\n\n\n<p>Always make sure that the company you are advertising for is legitimate. Social media is a breeding ground for scams and false information. Every day, influencers will get messages from so-called \u2018businesses\u2019 asking them to advertise their products. Although these businesses are generally legitimate, there are a few who are just out to make a quick buck out of you. You should always research:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>the company that you are advertising for; and<\/li>\n\n\n\n<li>whether other influencers are promoting their links.&nbsp;<\/li>\n<\/ul>\n\n\n\n<div class=\"box box--info box--icon\">\n<p><span style=\"font-weight: 400\">If there is not much information on a specific business, you may want to rethink whether you want to take the risk of advertising for them.&nbsp;<\/span><\/p>\n<\/div>\n\n\n\n<h3 class=\"wp-block-heading\">4. Certain Products Have Stricter Rules<\/h3>\n\n\n\n<p>Some products have specific rules when it comes to advertising them, and this includes affiliate marketing links. For example, age-related products such as alcohol must follow the Code for Advertising and Promotion of Alcohol. Additionally, the <a href=\"https:\/\/www.anza.co.nz\/\" target=\"_blank\" rel=\"noreferrer noopener\">Association of NZ Advertisers<\/a> has an approval service for:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>therapeutic and health advertising;&nbsp;<\/li>\n\n\n\n<li>alcohol advertising and promotion; and<\/li>\n\n\n\n<li>advertising targeted to children and young people.&nbsp;<\/li>\n<\/ul>\n\n\n\n<div class=\"box box--info box--icon\">\n<p><span style=\"font-weight: 400\">This tool allows you to check what extra steps you need to take when promoting these types of products.&nbsp;<\/span><\/p>\n<\/div>\n\n\n\n<p>It is important to comply with these regulations to avoid legal issues and maintain ethical marketing practices. Influencers should familiarise themselves with relevant codes and seek guidance when unsure about specific product promotions.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">5. False Claims About the Product<\/h3>\n\n\n\n<p>Under the <em>Fair Trading Act<\/em>, you cannot make <a href=\"https:\/\/legalvision.co.nz\/e-commerce\/online-reviews\/\" target=\"_blank\" rel=\"noreferrer noopener\">false claims<\/a> about a product that you are advertising. Any claims made about the product you are advertising should always be true. This also includes any claims about the company. If you are caught making a claim about a product that is considered untrue, you could be liable for a fine.&nbsp;<\/p>\n\n\n\n<p>For example, if your ad states that a product is made from organic or ethically-sourced ingredients, you must have the evidence to prove this. Else you can be liable for misleading or deceiving your followers. To avoid such issues, ensure to research the product and confirm that there is information to back-up any claims.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">6. Consider Privacy Obligations<\/h3>\n\n\n\n<p>When advertising on social media platforms, you might use third-party advertising services to engage with your viewers. It is essentially an online business. However, be mindful of your privacy obligations if the third-party service uses your followers\u2019 personal information.&nbsp;<\/p>\n\n\n\n<p>Under the <em>Privacy Act<\/em>, you must comply with the following when dealing with personal data:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>inform consumers that their personal information is being used and collected;<\/li>\n\n\n\n<li>outline why information is being collected;<\/li>\n\n\n\n<li>outline how you will protect the information;<\/li>\n\n\n\n<li>note whether providing the information is necessary;<\/li>\n\n\n\n<li>detail how consumers can contact you regarding their data; and<\/li>\n\n\n\n<li>outline your processes in case of a privacy breach.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>When starting your new ad campaign on social media, it might be necessary to conduct a <a href=\"https:\/\/legalvision.co.nz\/data-privacy-it\/privacy-impact-assessment\/\" target=\"_blank\" rel=\"noreferrer noopener\">privacy impact assessment<\/a>. This will help identify privacy risks so you can fulfil your legal responsibilities concerning privacy laws in New Zealand.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Key Takeaways<\/h2>\n\n\n\n<p>Influencers must be cautious when promoting affiliate marketing links. You should use the tips above to stay on the right side of the law. Anyone in breach of the relevant laws could be liable for fines or asked to take the content down by the Advertising Standards Authority. Further, this could negatively impact your reputation as an influencer. Remember always to label your ad content and do your research before agreeing to promote an affiliate marketing link.&nbsp;<\/p>\n\n\n\n<p>If you need legal assistance with affiliate marketing links, our experienced <a href=\"https:\/\/legalvision.co.nz\/online-business-ecommerce-lawyers-lp\" target=\"_blank\" rel=\"noreferrer noopener\">e-commerce lawyers<\/a> can assist as part of our LegalVision membership. You will have unlimited access to lawyers who can answer your questions and draft and review your documents for a low monthly fee. Call us today at\u00a0<a href=\"tel:+64800005570\" class=\"AVANSERnumber dynamic-number\">0800 005 570<\/a> or visit our <a href=\"https:\/\/legalvision.co.nz\/membership\/\" target=\"_blank\" rel=\"noreferrer noopener\">membership page<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Frequently Asked Questions<\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1617077769015\"><strong class=\"schema-faq-question\"><strong>Is it still considered ad content even if you don\u2019t have a large audience?<\/strong><\/strong> <p class=\"schema-faq-answer\">Yes, anybody who is promoting social media content in exchange for payment is considered an influencer. As such, they must follow the guidelines when posting ad content.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1617077781417\"><strong class=\"schema-faq-question\"><strong>Can I be punished for breaking the rules?<\/strong><\/strong> <p class=\"schema-faq-answer\">Yes, the Advertising Standards Authority can fine you for a breach of rules or can force you to take your content down.<\/p> <\/div> <\/div>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"3bc3beddae\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/204265\" \/>            <input value=\"https:\/\/legalvision.co.nz\/e-commerce\/legal-tips-for-affiliate-marketing\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"6 Legal Tips for Affiliate Marketing in NZ\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Affiliate marketing has become increasingly popular in New Zealand and around the world. In particular, social media influencers and regular people have latched onto this model and have used it to monetise their content or create passive income. Affiliate marketing is the practice of providing a unique affiliate link to enable individuals to refer their<a href=\"https:\/\/legalvision.co.nz\/e-commerce\/legal-tips-for-affiliate-marketing\/\">Continue reading <span class=\"sr-only\">&#8220;6 Legal Tips for Affiliate Marketing in NZ&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13496,"featured_media":201831,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"204551,204779,220628,207258,2136,1689","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[6],"tags":[25,74,637,638,720,721],"class_list":["post-204265","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-e-commerce","tag-small-business","tag-online-business","tag-e-commerce","tag-misleading-advertising","tag-influencer","tag-affiliate-marketing"],"acf":[],"yoast_head":"<!-- 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