Phrases to Avoid for Legal Safety in Business
TL;DR:
- Certain phrases can trigger FTC investigations and legal problems
- Payment processors like Stripe and PayPal can freeze accounts over problematic language
- Using phrases for years doesn't protect you from future legal action
- Regular content reviews help protect both business and personal assets
- When unsure, choose transparent language over clever marketing copy
The words you use in your business communications matter more than you might think. Certain phrases can put you on the FTC's radar and lead to serious legal and financial consequences. This isn't about being overly cautious – it's about protecting your business and personal assets from avoidable risks.
Understanding Legal Risk in Business Language
The FTC takes a hard line on misleading or deceptive business practices. What might seem like standard marketing language to you could be viewed as problematic by regulators. The consequences go beyond just warnings – investigations can lead to asset freezes that affect your business accounts, personal bank accounts, and even retirement funds.
Payment processors are particularly sensitive to compliance issues. Companies like Stripe and PayPal actively monitor for problematic language and can freeze your accounts without warning. Once that happens, getting access to your funds becomes a lengthy and complicated process.
Common Problem Phrases
The biggest risks come from promises you can't guarantee. This includes:
Guaranteed outcome statements – Phrases that promise specific results regardless of individual circumstances or effort levels.
Exaggerated income claims – Statements about potential earnings that aren't backed by verified data or typical user experiences.
Unverified testimonials – Success stories that can't be substantiated or represent unusual rather than typical results.
Absolute promises – Any language that suggests certain outcomes without acknowledging variables or individual differences.
The key issue isn't the specific words but the implied promises. If your language suggests guaranteed results or outcomes that depend on factors outside your control, you're creating legal risk.
Protecting Your Business
Start with a thorough review of all your business communications. This includes your website copy, email sequences, course materials, social media posts, and any sales pages. Look for language that makes promises about outcomes or results.
Train anyone who creates content for your business. Your team needs to understand why certain phrases are problematic and how to communicate benefits without creating legal exposure. This includes virtual assistants, copywriters, and social media managers.
Replace risky language with transparent alternatives. Instead of promising guaranteed results, focus on what you provide – the training, tools, or support. Let potential customers draw their own conclusions about outcomes.
Document your changes and keep records of your compliance efforts. If issues arise later, evidence of good faith efforts to maintain compliance can be valuable.
Consider getting your key marketing materials reviewed by a lawyer who specializes in business and marketing law. This upfront investment can save significant problems later.
Creating Compliant Content
Good compliant content focuses on what you deliver rather than what customers will achieve. Describe your methods, experience, and approach. Share verified case studies with proper disclaimers about typical results.
Use qualifying language when discussing outcomes. Phrases like "potential results," "possible outcomes," or "some clients experience" help set realistic expectations without making guarantees.
Be honest about variables that affect success. Acknowledge that results depend on factors like individual effort, market conditions, or personal circumstances.
When sharing success stories, include context about what made those results possible. This helps potential customers understand what contributed to the outcomes rather than assuming they're guaranteed.
Ongoing Compliance
Set up regular review schedules for your content. Market conditions and regulations change, so what's acceptable today might be problematic tomorrow. Quarterly reviews of your main marketing materials help catch issues early.
Stay informed about FTC guidelines and industry best practices. The regulatory environment evolves, and keeping up with changes helps you adjust your approach before problems arise.
Monitor your payment processor communications. If you receive warnings or notices about your account, take them seriously and address issues immediately.
Keep detailed records of customer results and testimonials. If you share success stories, be prepared to verify them if questioned.
FAQs
What specific phrases should I avoid in my marketing?
Focus on avoiding absolute promises like "guaranteed results," unverified income claims, and testimonials you can't substantiate. When in doubt, choose descriptive language about what you provide rather than what customers will achieve.
How often should I review my business content for compliance issues?
Review your main marketing materials quarterly and audit everything at least twice per year. Also review content whenever you launch new products or make significant changes to your messaging.
Can compliance issues affect my personal finances?
Yes, serious FTC investigations can result in asset freezes that impact both business and personal accounts, including retirement funds and personal bank accounts.
What should I do if my payment processor flags my account?
Address any warnings immediately by reviewing and updating problematic content. Don't ignore payment processor communications – they often precede more serious enforcement actions.
Jargon Buster
FTC (Federal Trade Commission) – The US agency responsible for consumer protection and preventing deceptive business practices
Asset freeze – Legal restriction preventing access to funds in business or personal accounts during investigations
Payment processor – Companies like Stripe, PayPal, or Square that handle credit card and online payments for businesses
Compliance – Following relevant laws and regulations that apply to your business operations
Substantiation – Having evidence to back up claims made in your marketing or business communications
Wrap-up
Protecting your business from legal issues starts with the language you use. While it might feel restrictive to avoid certain phrases, the alternative – dealing with FTC investigations or frozen assets – is far worse. Focus on describing what you provide rather than promising specific outcomes, and you'll build a more sustainable and legally sound business.
The effort required to review and update your content is minimal compared to the potential consequences of non-compliance. When you're uncertain about specific language, choose transparency over clever marketing copy.
Join Pixelhaze Academy for more practical business guidance and compliance strategies.