On December 1, 2009, new FTC regulations that govern the use of endorsements and testimonials to promote products went into effect. FTC regulations now require all endorsements to disclose any “material connection” between the vendor and the advertiser.
Congress will soon be voting on two separate bills, which if they become law will certainly increase the burden on webmasters for website legal compliance, including new disclosures and website legal forms.
Recent case law confirms once again: if online agreements are presented properly to end-users, they’re legally enforceable. This continuing trend is good news for websites that contract with registered users though SaaS Agreements, Membership Agreements, Subscription Agreements, Terms of Sale, Content License Agreements, and the like.
Why? Among other things, this means that important legal disclaimers and limitations of liability are legally enforceable.