October 22, 2022
If you are an influencer, if you know an influencer or if you are a social media user who watches influencers you’re going to want to pay attention to this.
The Federal Trade Commission is not happy about how influencers are disclosing –or not disclosing – when they’re being paid for content or have some kind of relationship with a brand, service or product they are endorsing…even if it’s just a promo code or some free stuff that was sent. So the FTC is talking about changing the rules.
First – let me explain what’s happening.
Incase you’re new to this – influencers must follow the law when it comes to being paid for content, endorsing a product, or talking about a product that was sent for free. Back in 1980 — the FTC – created the endorsement guide that lays out what is legally considered an endorsement and what’s considered a testimonial. That document was updated in 2009 and then in 2019 the FTC put out another document clarifying those rules called “Disclosures 101.”
But now the FTC is considering changing the rules again because of the explosion of social media influencers and the money that’s exchanging hands with not so much disclosure. The FTC are sticklers about the disclosure and their whole mission is to regulate against deceptive practices.
After thousands of public comments the FTC has proposed several new rules – here are just a few.
a big one is expanding the definition of the word “endorsement” – to include marketing and promotion messages as an endorsement not just an advertising message. That means potentially just tagging a brand *may be considered an “endorsement” and would fall under the disclosure rules.
Another suggestion – is to amend the current rules to now require ‘clear and conspicuous” disclosures that are “difficult to miss” and “easily understandable” both visually and verbally in certain circumstances when influencers are being paid for the post. The FTC is suggesting a clarification that both the influencers and the paid endorser will be held liable for failing to disclose their. And the f-t-c also wants the social media companies to update their in-platform endorsement tools because the f-t-c says they’re currently “inadequate.”
Another suggestion is to clarify that if an influencer is paid or incentivized to post negative statements about a competitor’s product that can be considered a deceptive practice.
And there’s a whole section of proposals when it comes to endorsing products targeted at kids. In fact, the f-t-c is holding a public meeting on Wednesday to explore more changes to protect kids online.
Bottom line, if you are currently being paid by brands or getting free stuff in exchange for content you need to know the riles. I will link all of the FTC rules on my website. And just know those rules are likely going to tighten up pretty soon.
All the rules for Influencers from the FTC here.
More from the FTC about the changes here.
FTC Endorsement Guide here.
Disclosures 101 from the FTC here.
