Affiliate Compliance Glossary
Plain-English definitions of the key terms used across affiliate disclosure, data-privacy, and search-engine compliance.
A concise reference to the terms used throughout this resource. Where a term has a dedicated page, follow the links in the relevant section for the full explanation.
| Term | Definition |
|---|---|
| Affiliate link | A unique tracking URL that credits an affiliate with a commission when a visitor clicks it and completes a qualifying action. |
| Affiliate network | An intermediary platform that connects affiliates with merchants and handles tracking, reporting, and payment. |
| Clear and conspicuous | The legal standard requiring a disclosure to be hard to miss: prominent, near the claim, in plain language, and unavoidable. |
| Cookie (tracking) | A small file stored on a user's device used to attribute a later purchase to the referring affiliate. Treated as a non-essential advertising cookie requiring consent in the EU and UK. |
| Disclosure | A clear statement telling the audience that the creator may earn a commission or received compensation. |
| Drip pricing | Advertising a price that is not actually attainable because mandatory fees are added later; prohibited in Canada, the UK, and elsewhere. |
| Endorsement | Any advertising message consumers are likely to believe reflects the opinions or experiences of someone other than the sponsoring advertiser. Expanded in 2023 to include tags, fake reviews, and virtual influencers. |
| FTC | The United States Federal Trade Commission, which enforces the Endorsement Guides and the Rule on Consumer Reviews and Testimonials. |
| Material connection | A relationship between endorser and seller — payment, free product, or business/personal ties — that could affect the weight consumers give an endorsement. |
| Material connection disclosure | See disclosure; the specific act of revealing a material connection. |
| Notice of Penalty Offenses | An FTC mechanism that puts companies on notice that certain conduct is unlawful, enabling civil penalties for later violations. |
| Omnibus Directive | EU Directive 2019/2161, effective May 2022, which requires disclosure of paid rankings and addresses fake reviews. |
| Paid ranking | Placement in search or listing results influenced by payment; must be disclosed under the EU Omnibus Directive. |
| Thin affiliate content | Pages built around affiliate links that copy merchant descriptions without adding original value; treated as spam by Google. |
| UCPD | The EU Unfair Commercial Practices Directive (2005/29/EC), the baseline law banning hidden advertising in the European Union. |
| rel="sponsored" | The HTML link attribute Google asks publishers to apply to paid and affiliate links so they do not pass ranking signals. |
For the foundational concept behind most of these terms, see what a material connection is.
Last reviewed July 2026. This page is general educational information, not legal or tax advice.