Hi, I'm new to affiliate marketing and very scared about the cease-and-desist orders, I'm from Austria and I've heard about much warnings, concerning the violations of the competition law.

So, I've seen a few sites which are advertising with a cashback - if you're ordering through their affiliate link, they will transfer you 20 USD per Paypal (as an example).

First question: Is this permitted?
Second question:
As an example bookmarkingdemon: they are offering a commission of 67 USD for each referral, but also a 60 days money back guarantee. I've found a site which is offering a 40$ cashback -> what happens if the client uses the money back guarantee? Does the ref has a loss of 40 USD in this case?

Third question:
Have you got another important notices for me? Not conercing how to build up an affiliate business, I just want to be safe from all possibly cease-and-desist-orders regarding to the competition law.

Thanks for your help!