@Tim I just sent my letter of concern to Ashley Kinkead of Private Label Mastery via our private Slack Channel. I said:
After some research, I wanted to address some concerns about the criteria for joining and staying in the Private Label Mastery Mastermind Group on Facebook. I think it’s a great group and has wonderful potential, but the PLM Mastermind Marketing Policy is what we think something that needs advice from a lawyer from before proceeding. We’re not comfortable with the buy/review/reimbursement policy.
I’m obviously not a lawyer, but I’m concerned that our operating in a gray area in order to provide each other product reviews may be too risky both for our Amazon seller accounts as well as our businesses’ legal compliance with federal laws.
Amazon’s review policies state that only book authors may provide books to customers for free and encourage them to leave reviews.
Amazon’s policies strictly prohibit us to give products to others in exchange for reviews.
FTC policies that are federal law seem to state that endorsements that are monetized or are given in exchange for a gift must be clearly and obviously disclosed.
Our purchasing of other mastermind members’ products in order to provide reviews later to be reimbursed by the producer seems dangerously close to gifts.
You have much more to lose than we have since you’re running a very successful PL Amazon business. I’d hate for you to get into trouble for violating Amazon and FTC policies (I’d also hate to get into trouble). Would it be possible to reach out to Amazon to ensure that our group’s policies at least are in compliance with Amazon’s policies? If they are, maybe we could consult with either a lawyer or the FTC to ensure that we’re also in compliance with the FTC policies?
Respectfully,
Franicia
Reference articles in our research:
https://www.ftc.gov/tips-advice/business-center/guidance/ftcs-endorsement-guides-what-people-are-asking
https://www.amazon.com/gp/help/customer/display.html?nodeId=201929730
https://hey.com/influencer-marketing-outlaws/