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News & Events Press Releases Online Marketing Service Providers Announce Web Publisher Code of Conduct

Code to Establish Fair Business Practices in Pay-for-Performance Advertising

NOTE: The Publisher Code of Conduct has been updated since this release. Click here to read the latest Code.


LOS ANGELES, Calif. – Dec. 10, 2002 – Three of the leading service providers in performance advertising and affiliate marketing today issued a Web publishers' Code of Conduct to guide practices and adherence to ethical standards for online advertising. The code is the result of several months of work by the group -- made up of Be Free, Commission Junction and Performics -- and seeks to address the concerns expressed at an industry summit held in New York City on Nov. 7, 2002 on the subject of fair practices. The service providers, who are committed to enforcing the code consistent with their own business operations, developed principles designed to ensure proper attribution of commission to independent publishers when end-users are referred to an advertiser's site.

Wayne Porter, vice president of product development at AffTrack, who observed the group's discussions and moderated the New York City summit, expressed strong support of the code. "The Web publishers' Code of Conduct being issued today is a major step forward in the industry's maturation. The code balances the requirements of publishers, advertisers, service providers, and the end-user and provides a structure for business that is both ethical and fair. I applaud Be Free, Commission Junction and Performics for their persistence and dedication to developing standards in a particularly controversial area."

The service providers, through the Web publisher Code of Conduct, seek to ensure equity and fairness across all publishers by setting standards and guidance that were previously unavailable. Publishers' use of technology to circumvent fair business practices will be in violation of the code of conduct and will not be allowed. The code strives to provide a fair and balanced solution to the current issue, while setting the stage for the development of additional structure and standards with the overall objective of a fair and open marketplace for Internet advertising. Be Free, Commission Junction and Performics encourage all interested industry parties to adopt and endorse the code of conduct and participate in future discussions. Recognizing the ongoing evolution of technology and business practices in the online marketing industry, the service providers intend to periodically host discussion forums. The group plans a follow-up session to the November 7th summit, tentatively scheduled for January 21, 2003. Details will be forthcoming.

The Publisher Code of Conduct, along with its preamble, which describes the intended implementation of the code, is reproduced below and is also available on all three service providers' sites.

Preamble to Publisher Code of Conduct

We, the undersigned Service Providers, believe that fair business practices produce optimum results for online consumers and all parties participating in online pay-for-performance advertising and affiliate marketing programs. In particular, fair business practices are important to the continued vitality of online advertising and the continued availability of advertiser-supported content. These practices include compliance with contractual obligations and all applicable laws and regulations, as well as adherence to high ethical standards as responsible members of the online advertising community. To this end, we have jointly drafted the following Code of Conduct (the "Code") to provide guidance to each of our advertiser customers ("Advertisers"), Web publisher customers ("Publishers") and software download technology providers ("Technology Providers") regarding the use of certain downloadable shopping software applications.

The Service Providers involved in drafting this Code recognize that consistent enforcement of the Code is critical to its adoption and acceptance as an industry standard, and to the ultimate accomplishment of the Service Providers' goals of maximizing efficiency and vitality in the online advertising business segment. Each Service Provider has committed to enforcing the Code through means consistent with its own business operations and practices, and to communicating and cooperating with its customers regarding enforcement and interpretation of the Code. Furthermore, the Service Providers recognize that notwithstanding a Service Provider's application of the Code, each Advertiser retains the right to choose whether or not to work with a Publisher even if they are in compliance with the Code.

Notwithstanding their commitment to enforcement, the Service Providers recognize that Publishers and Technology Providers must be given sufficient time in order to modify their business practices to comply with the Code. Accordingly, enforcement of the Code will begin immediately, however, companies that are found to be non-compliant may be given up to sixty (60) days to bring their activities into compliance. Grace periods for compliance with this Code do not supercede any pre-existing contractual obligations of any Publisher.

While the Code of Conduct is intended to address many, if not all, of the major concerns raised by all interested parties, the practical aspects of drafting such a document make it impractical to cover all issues that may arise. As such, in addition to adherence to the Code of Conduct, all Publishers and Technology Providers are expected to perform their advertising and referral services with honesty and integrity in any situation not specifically covered by the Code.

Other interested industry parties are encouraged to adopt or endorse this Code.

Be Free, Inc., a ValueClick Company W. Blair Heavey, Executive Vice President & General Manager

Commission Junction, Inc. Jeffrey A. Pullen, President & CEO

Performics Inc. James Crouthamel, President & CEO

PUBLISHER CODE OF CONDUCT

The following actions, practices and conduct, whether active or passive, direct or indirect, are prohibited:
  • Interference with referrals. No Web publisher ("Publisher") or software download technology provider ("Technology Provider") may interfere with or seek to influence improperly the referral of a potential customer or visitor ("End-User") to the Web site of an online advertiser ("Advertiser"). No Publisher or Technology Provider will automatically replace or alter any component of a Service Provider's technology that results in a reduction of any compensation earned by another Publisher. For example, a Publisher or Technology Provider may not use methods or technology to automatically replace a Service Provider's tracking identifier of another Publisher with its own Service Provider's tracking identifier or otherwise intercept or redirect an End-User from being referred by another Publisher.
  • Publisher may notify an End-User once that End-User has arrived at the Advertiser's Web site of an opportunity to utilize technology employed by that Publisher and obtain the End-User's consent via affirmative action upon each occurrence to proceed with the operation of such technology. Implementation of software application functionality requires that the notification be easily understood by the average End-User, that it occurs on each instance that the functionality is to be activated, and that it is not objectionable to the Advertiser.
  • Altering another Publisher's site. Publishers may not alter, change, substitute or modify the content of or appearance to an End-User of another Publisher's Web pages, use that Publisher's content to obtain an End-User referral, or obstruct access to another Publisher's Web pages (regardless of receiving permission from the End-User).
  • Software installation and de-installation. Publishers may not bundle downloadable shopping software applications with other applications, whereby the installation and de-installation is not obvious, easy or complete. Licensing and terms of all software downloads and applications of any type must be clearly presented to and accepted by the End-User, and de-installation must be obvious, easy and complete.
First Published: December 10, 2002

About Be Free a wholly owned subsidiary of ValueClick, Inc.
Be Free offers cost-effective and measurable ways to attract customers and increase online sales using affiliate and partner marketing programs, search marketing services, and personalized recommendation and merchandising assistant technology. For more information on Be Free's products and services, visit www.befree.com

About Commission Junction
Commission Junction delivers advanced performance-based online marketing solutions that facilitate strategic relationships between advertisers and publishers, driving accountable results for each client. By publishing performance metrics on advertisers, publishers, and ads within its network and leveraging its own expertise in online marketing through service, education and promotion, Commission Junction creates an open marketplace of low risk and high reward for its clients. The company serves billions of impressions monthly, ranking it among the largest ad networks in the world. Clients include leading online marketers eBay, MSN®, and USA TODAY. Commission Junction is headquartered in Santa Barbara, Calif., with offices in San Francisco, New York and London.

About Performics
Performics powers performance-based online marketing; driving desired sales and actions while meeting a marketer's need for a measurable return. Performics provides comprehensive distribution through onsite advertising, search marketing and permission-based e-mail programs. The company offers retailers, catalogers and direct marketers a distinctive mix of active account management, advanced market expertise and proprietary tracking technology. Performics develops and implements customized programs that enable clients to acquire and retain online customers while only paying for a predetermined sale or action. Performics' interests are squarely aligned financially and strategically with both it's marketers and it's distribution partners.

Performics' clients include: America Online, Bose, Eddie Bauer, Jos. A. Banks, Orvis, Palm, Spiegel, Verizon Wireless, JC Whitney and more than 180 others. For additional information please visit www.performics.com.

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