>> A while back we were ranked number in the natural listings of Google for "Virgin Megastores". One day we got a nasty letter from lawyers of Virgin Megastores trying to make out that it was illegal for us to be number one and them to be number two.
Noooooo! Please, please change the site back! I know a few people at Google, and I
am fairly certain that a counter legal doc from a $150bn corp (less likely) or a VERY high profile blog post ridiculing the letter would work wonders (remember the BMW thing? Exactly)
>> Put yourself in the merchants' shoes - they're used to traditional offline marketing
True - we are in a transitional phase right now. I would also assert that the "traditional offline marketing" mindset WILL kill those merchants who insist on adhering to it in the long run. You don't get to "control your brand message" in the same way online - tough, deal with it.
If I set up a site and outranked [large merchant site] for their own brand name, and plastered it with [brand name] sucks content, it's not their business unless they can make a case for libel.
>> But let's not get on our high horses and claim all affiliates are squeaky clean
I know it. And yes, there are several things that can, and do, happen that are probably ATUALLY illegal (fraud in the main). But there's also things like SEs placing ads via their own internal, proprietary, nothing-to-do-with-affiliates matching algos which causes affiliate ads to show on a "restricted" keyword. And then networks / merchants have got all upset and threatened all sorts of dire consequences for things that were never intended nor even under the control of the affiliate, and all without checking the pertinient facts
So let's not get on our high horses and claim all networks / merchants are squeaky clean, either