When And How To Use An Alias In Business

A member once asked a question about the legality of using an alias or pseudonym in copy.

That is, is it legal to write the copy in the voice of a fictitious character, or telling the story of a fictitious character enjoying the benefits of your offer?

Using an alias in business is a common practice. However, if you’re considering using an alias or already are using an alias, there are a few things to know to keep your head above water with the law.

Using an alias or pseudonym is generally fine, as long as within the intrinsic nature of the alias there’s no false or misleading information meant to induce the consumer to buy.

If the alias is used to misrepresent the facts, or indirectly does so by its mere existence, you’re breaking the law.

It’s like the difference between making a promise versus making a claim.

If your story implies what your clients will get, then you’re making a promise. And a promise made by a fictitious character is fine since the character represents the business making it.

(Keeping promises is a different ball of wax.)

But if it states what your past clients have done, then it’s a claim. Because the fictitious character represents a client, or presents information as fact. Therein lies the difference.

So ask yourself, does your alias make a promise? Or a claim? If the latter, is the alias a part of that claim?

Here are two examples to clarify.

1. Alias as Narrator

You tell an non-obvious, perhaps dramatized story of a fictitious person who benefits from your product or service.

The story shows your prospects what they should do, and what kind of results they should expect, by watching the story play out. The teller of the story, or the person in the story, is completely fictitious.

This is fine as long as what is promised is true, and you deliver on your promises.

For example, John Doe gets into an accident. He picks up the phone and says, “Uh oh, better get Maaco!” And then the screen fades to a scene with John, with his now repaired car in the background, shaking hands with a Maaco mechanic and a huge smile across his face.

How many times have you seen commercials like that?

Now, here’s the exception…

The fine line is when the story doesn’t imply what one should do but what one has actually done, which represents and implies, precisely, what the person will get based on what was represented as fact.

In other words, it’s no longer a promise.

It’s a claim.

Stated differently, when the advertisement states or even just implies that John is an actual client, a real person who got that exact service, in that exact way, with those exact results, you are misleading the public.

The story implies people will get the same. Specifically, it is no longer a story but a testimonial. And testimonials, by law, must be true.

The subsequent sale, should any occur, is therefore acquired fraudulently, because people believe that John is a true client and offering a real testimonial for Maaco. The story is presented as fact when it is not true.

And that’s illegal.

Remember the story of the Wal-Mart couple who drove their trailer across the United-States, going from Wal-Mart to Wal-Mart, and blogging about their (seemingly only) positive experiences?

The backlash was massive. And merciless.

Legality aside, it became a PR nightmare. Some argue that the stunt would have been safe — and even that’s arguable, too — if the blog had a proper disclosure informing readers that the characters were fake.

(In fact, the massive backlash inspired the popularity of the terms “flog” and “flogging,” which means “fake blogging.”)

2. Alias as Provider

If you call yourself a pen name to tell the story in your copy, and this pen name doesn’t mislead, you’re OK — as long as it is clear that people are not buying from your fictitious character but from the business it represents.

They are buying from a real business with a real business name. For example, you don’t buy burgers from Ronald McDonald himself, right? You buy it from McDonald’s restaurants, the business Ronald represents.

Here’s a scenario.

When a sales letter is signed by “Mr. X,” if Mr. X is telling the story and plays the role of a narrator (not a business entity), then you’re fine.

Mr. X (or any other alias) is telling the story, or even making the promise, on behalf of the commercial entity you’re doing business with.

The fine line, in this case, is when you state that Mr. X is a real person, and that person makes claims or presents information as fact on behalf of the commercial entity, such as past experiences, clients, or results.

Generally, this is OK too, as long as the facts are true, and the alias is not the provider with whom you’re doing business.

But if you do this, you not only need to include real facts in your story (as always), but also be fully prepared to prove them when asked by either the public or the government.

If the FTC ever comes knocking at your door, you better have proper documentation and real proof to back up your claims and save your anatomy!

What about a business name?

Having a business with a fictitious name is definitely legal, provided that you have filed the proper documentation (such as registering your business, incorporating, or filing a “doing business as” statement), and carried out the proper trademark searches.

This is a normal part of doing business, even vital for branding purposes.

The issue is not with the name but when the existence of the business, its actual clients, or any results achieved are works of fiction.

Ultimately, the question to ask is, does it tell a story to make a point? Or does it mislead and deceive to make a sale? Whether intentionally or not, the latter is outright fraud.

To sum it all up, using an alias is fine as long as you are not making claims as that alias.

You, using your real name (or your real business name), can make claims until the sun goes down. You own them and people know who to turn to if the claims are false.

And if you use an alias to tell a story, whether dramatized or written in a sales letter, you’re generally safe. However, if you make claims under an assumed name, then it is illegal when the assumed name is presented as fact.

Of course, before you ultimately decide to use an alias, particularly if you’re concerned about whether or not you’re crossing a line, consult with an attorney.

I’m not a lawyer and the above should not be construed as legal advice. Plus, this article should be viewed only as a partial or general opinion and commentary, as every individual case is unique.

It is based on my years of experience, especially working with doctors and lawyers in my early career when I first established my company, The Success Doctor, Inc., which used to focus strictly on doctors and service professionals.

(Hence, the name “The Success Doctor.”)

Finally, props go out to my friend Mike Young, Esquire, an Internet marketing lawyer who reviewed my response. I highly recommend his new book, “Internet Marketing Legal Secrets Revealed.” (And yes, that’s my affiliate link.)

Update: Please read some of my comments below. Some great questions were asked, along with my answers.

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