As you have probably heard, the FTC is now cracking down on testimonials AND affiliate marketing.
The new rules were effective as of December 1st, 2009.

To make it as simple as possible for you to understand we've written the following guidelines for you:

First, do NOT make the mistake of taking this enforcement lightly. The Federal Trade Commission does NOT give warnings. The first time you hear from them you are already in trouble. And that could mean a serious fine in the neighborhood of $10,000 or even a full-blown law suit.

Second, as an affiliate of ANY product being sold online you are responsible for legitimately reviewing the product before making a recommendation to anyone to purchase.

Third, you MUST make it clear on any web page, blog post, video, newsletter, etc. that you use to promote an affiliate product that you are being compensated in exchange for any sales of the product.

However, you do NOT necessarily just have to say something like, "I'm a paid affiliate for XYZ product and will receive a commission if you purchase it."

Our legal counsel has advised us a mention similar to the following should suffice:

"I believe in their products so much I recently became a Carb Rotation Diet affiliate."

"As a paid member of the Carb Rotation Diet marketing team I wanted to share this new product with you."

Fourth, you MUST NOT make any outrageous or unsubstantiated claims about any products you are promoting.
For example:

Do not make a statement that you will lose X number of pounds in x number of days.

Especially if you have not used the product yourself.

Do not make any claims about how effective the product has been for you if you have not used the product yourself.
If you have NOT used the product make sure your promotion states that fact.

Fifth, while you should take the new FTC crackdown very seriously, it should NOT prevent you from being a highly compensated affiliate. By following these simple guidelines - which are very ethical - you should be perfectly fine.

Lastly,  I am not an attorney. The responsibility for affiliate promotions ultimate falls on your shoulders. You may feel the need to hire your own legal counsel to discuss these matters with so you can be as protected as possible.

If you have any questions whatsoever please feel free to contact me and I'll be happy to assist you any way I can.

Yours in good health,

Jayson Hunter RD, CSCS