Here is a link to an interview with the FTC director of consumer advertising.  He answers all your questions including the disclosure that you must provide when you are endorsing any service or product where you will be compensated.

This will really help in getting some of the scammers out of the way.  We all look to the internet for information, so weeding out the players who are giving bogus rave reviews about products that they are receiving free will be a good thing.

However, it all comes down to having a disclosure statement near your affiliate link is pretty much all you need.  They actually provide one in the interview that will suffice.   The FTC deadline is December 1, 2009.

http://jimedwards.s3.amazonaws.com/ftc-advertising-interview/index.html

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