Quote:
Originally Posted by 12clicks
no fines, no real restraints, thats some smackdown.
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Actually, if I am not mistaken, AFF must pay the FTC for their costs associated with the case. Even if that is not so, there are a number of other costs that AFF is going to have to absorb as a result of the settlement.
The injunction is pretty broad, so compliance (including establishing new procedures for monitoring affiliate activities) may come at a substantial cost to AFF.
It appears that AFF will not be able to use the "rogue affiliate" defense in the future, since if I read it correctly, the court seems to be saying that AFF is responsible for the actions of its affiliates.
Their appear to be numerous ways for AFF to respond, such as using less explicit ads etc., but even these changes will likely have some cost associated with them.
Finally, AFF will have to open up their books and provide the government with detailed financials, which may expose AFF to other potential future actions, if the rest of their operation is managed similar to how they have handled pop-ups, and the litany of other complaints that have come against the company over the past few years (and before).
I guess that's why they pay the big bucks for their lawyers...
ADG