IAB Australia releases affiliate program compliance framework

IAB Australia released its Affiliate Program Compliance Guide on November 27, 2025, establishing a framework for maintaining quality and transparency within affiliate marketing programs. The guide addresses program integrity through structured application screening, ongoing monitoring protocols, and clear enforcement procedures for compliance breaches.

The framework emerged from the IAB Australia Affiliate and Partnership Marketing Working Group, comprising representatives from Afterpay, Are Media, Commission Factory, Future, Impact, ND Agency, News Corp Australia, Nine, Partnerize, Rakuten, and Skimlinks. The guide defines compliance as affiliates promoting campaigns according to standards and terms stipulated by networks and advertisers, while auditing encompasses checks verifying affiliate activity quality.

Application screening forms the first line of defense. The guide recommends verifying that traffic sources and websites load correctly, assessing content relevance to industry verticals, and analyzing traffic levels alongside social media presence. Promotional methods declared by applicants must align with program terms before approval. Applications failing these requirements should face decline or placement on hold pending additional information.

Terms and conditions provide the operational foundation. The guide specifies that program T&Cs must outline permitted and prohibited activities, disclosure obligations particularly where regulatory standards apply, consequences of non-compliance such as transaction voids or payment withholding, and dispute resolution processes ensuring fairness. Advertisers should review and update these terms regularly, especially when launching campaigns, entering markets, or introducing partners.

Continuous monitoring proves essential for active affiliates generating conversions. The framework requires review of declared traffic sources against audience engagement metrics, referring URLs and traffic source data in transaction reports, conversion origin countries with associated IP addresses, sudden spikes in conversions or traffic, and unusually high order values or conversion rates. High void rates also trigger investigation. The guide references IAB Australia's comprehensive resource on Affiliate Marketing Commission Validation Recommended Practices for 2025 for additional technical guidance.

Transaction validation operates on recurring schedules, with monthly reviews at minimum. All transactions require validation against advertiser order databases to detect fraudulent or invalid activity promptly. APIs enable automation across platforms, with some plugins providing automatic validation against affiliate systems.

Compliance breaches fall into distinct categories. Violations of program terms include misuse of coupon codes, paid search restrictions, or brand bidding policies. Technical violations encompass SPAM, malware, toolbars, or cookie stuffing. False advertising practices and criminal activities such as purchases made with stolen credit cards represent severe infractions. Regulated sectors including financial services or utilities require additional scrutiny for licensing and regulatory compliance.

Suspicious activity indicators demand investigation. Unusually high transaction values relative to historical patterns, elevated conversion rates without explanation, multiple orders of identical value within short periods, and multiple orders from the same IP address or click timestamp all warrant review. Significant performance spikes compared with historical data trigger scrutiny, though the guide emphasizes that high-value transactions or performance increases should not automatically imply fraud. Investigations must include verification of order IDs and customer details against backend systems.

Direct communication with affiliates provides compliance verification. When activity appears suspicious, contacting affiliates directly to request promotional method details creates documentation of compliance checks. Similarweb's March 2025 acquisition of The Search Monitor highlighted how monitoring technology identifies affiliates attempting evasion through de-cloaking methods and cross-referencing against ID and domain databases. The guide recommends requesting links, screenshots, and placement evidence while allowing reasonable response timeframes for corrections.

Monitoring routines should follow defined schedules encompassing application reviews, traffic and conversion monitoring, regular transaction validation, and additional checks on new high-performing affiliates. Understanding affiliate types and utilizing available network tools supports comprehensive oversight.

Confirmed breaches require documented evidence gathering through screenshots, URLs, and data reports. Escalation to affiliate platforms enables further action, while notices of removal or corrective action align with program terms. Voiding affected transactions and applying sanctions follows when necessary. The guide emphasizes communicating warnings and penalties upfront, including program suspension, commission withholding or cancellation, and permanent removal. When removal becomes necessary, providing reasonable notice with explanations maintains procedural fairness.

The framework's significance for marketers extends beyond policy documentation. PayPal's ongoing legal challenges with the Honey browser extension demonstrate how affiliate commission practices affect content creators and merchants. The lawsuit filed December 29, 2024, alleged systematic commission diversion through cookie manipulation, with subsequent court rulings in November 2025 denying arbitration motions allowing class action proceedings. These cases underscore the importance of transparent affiliate relationships and proper tracking mechanisms.

Attribution accuracy remains critical. Last click attribution models dominate affiliate marketing, making programs vulnerable to commission diversion schemes. Browser extension interference has driven significant user departures, with Honey losing over 6 million Chrome users following investigation revelations. Marketing professionals must account for extension interference when evaluating campaign performance and attribution accuracy.

Platform enforcement creates additional compliance considerations. Google's algorithm changes targeting publisher affiliate sections resulted in substantial traffic declines for major news publishers beginning September 2024. Forbes Advisor, CNN Underscored, Wall Street Journal Buyside, and Marketwatch Guides experienced visibility drops as Google replaced affiliate content with ecommerce results, AI Overviews, and community platforms. European Commission investigations into site reputation abuse policies further complicate publisher revenue strategies relying on sponsored and affiliate content.

Fraud detection technology advances alongside compliance requirements. Monitoring platforms employ thousands of IP addresses conducting randomized crawls across day parts and geographic targets, gathering comprehensive data appearing authentic to search engines. These systems enhance compliance detection accuracy and competitive research capabilities.

The guide establishes four pillars for compliance culture: clearly defined program terms, mandatory visibility of affiliate promotional methods, regular compliance checks and validation cycles, and documented processes for detection, escalation, and enforcement. Knowing affiliates through ongoing relationship management completes the framework.

Regulatory context shapes compliance priorities. The Federal Trade Commission's enforcement actions against e-commerce schemes resulted in over $20 million in monetary judgments in August 2025, targeting operations that defrauded consumers through false earnings claims and misrepresentations. Criminal prosecution of advertising executives involved in revenue fraud demonstrates consequences for systematic manipulation of programmatic transactions.

Industry-wide transparency initiatives complement compliance frameworks. The Media Rating Council's October 2025 draft standards for digital ad auction transparency address disclosure requirements enabling fair market operation while supporting independent auditing. These standards emphasize third-party measurement including invalid traffic detection and brand safety verification.

The compliance guide serves advertisers seeking sustainable affiliate program growth while protecting brand reputation and ensuring fair partner rewards. Clear standards, transparent processes, and consistent monitoring create trusted partnerships reducing risk across the affiliate channel. Programs embedding these practices into daily management operate with confidence while building long-term affiliate relationships.

IAB Australia positions the framework as essential program infrastructure rather than optional enhancement. Most affiliates operate in good faith, requiring ongoing checks and clear processes to maintain integrity across all partners. The guide emphasizes that quality control should integrate into standard affiliate management workflows, preventing compliance issues through proactive monitoring rather than reactive enforcement.

Timeline

• December 29, 2024: Class action lawsuit filed against PayPal's Honey extension alleging systematic affiliate commission diversion through cookie manipulation
• March 31, 2025: Similarweb acquires The Search Monitor, enhancing affiliate compliance monitoring capabilities with de-cloaking technology
• August 7, 2025: Federal prosecutors charge advertising executives with $25 million fraud involving fictitious programmatic transactions
• August 22, 2025: FTC finalizes settlements banning e-commerce scheme operators, securing over $20 million in monetary judgments
• October 29, 2025: Media Rating Council issues draft standards for digital ad auction transparency and disclosure
• November 7, 2025: Federal court denies PayPal's arbitration motion in Honey affiliate commission lawsuit, allowing class action to proceed
• November 27, 2025: IAB Australia publishes Affiliate Program Compliance Guide establishing framework for program integrity

Summary

Who: IAB Australia's Affiliate and Partnership Marketing Working Group developed the guide, comprising representatives from Afterpay, Are Media, Commission Factory, Future, Impact, ND Agency, News Corp Australia, Nine, Partnerize, Rakuten, and Skimlinks. The framework targets advertisers, affiliate networks, agencies, and publishers managing performance marketing partnerships.

What: The Affiliate Program Compliance Guide establishes standards for maintaining affiliate program quality through structured application screening, comprehensive terms and conditions, ongoing monitoring protocols, transaction validation procedures, and documented breach response processes. The framework defines compliance as affiliates promoting campaigns according to network and advertiser standards while auditing verifies activity quality.

When: IAB Australia released the guide on November 27, 2025, amid heightened regulatory scrutiny of affiliate marketing practices including ongoing litigation involving PayPal's Honey extension and Federal Trade Commission enforcement actions against deceptive business opportunity schemes.

Where: The framework applies to affiliate programs in Australia, though IAB Australia operates as one of 43 global IAB offices. The guide addresses affiliate marketing across all digital platforms including websites, social media, email, and browser extensions where affiliates promote advertiser products or services.

Why: The guide responds to ongoing compliance challenges within affiliate marketing including cookie stuffing, commission diversion, fraudulent transactions, misleading advertising, and violations of program terms. Recent high-profile cases demonstrate how affiliate misconduct affects content creators, merchants, and consumers, necessitating clear standards protecting brand reputation while ensuring fair partner compensation and reliable marketing results.