Well, it begins soon.. The FTC has put up new guidelines and are targeting bloggers and affiliate marketers. The new rules have strict policies regarding testimonials & endorsements. The new guidelines go into effect on 12-01-09 Check it out here - FTC Site
How do they ensure the testimonials are genuine or not ? I can get few of my friends to test my product and ask them to write a "Genuine" testimonial for me.
Just because they won't go after EVERYONE doesn't mean you won't be one of the unlucky few that they do.
There is already a detailed thread about the FTC issue and it even includes a FREE Disclosure Policy Generator you can use. (A few posts down) New FTC Rules, Fines to $11,000 - Affiliates and Bloggers Must Read
Correct. But how many CPA, CPC , CPS companies that pay you out are in the States ? Thats over 90%. So even if you do not live in America, you probably get paid from a American company.