Updated FTC Guidance on Influencer Marketing Disclosure
Updated July 13, 2023
The FTC’s job is to preserve consumer trust. When the FTC adds clarity to its regulations, the purpose is usually to make the guidelines more clear, and therefore easier to follow.
This is an important announcement if you use influencer marketing or consumer reviews.
The updated FTC guidance covers:
1) articulating a new principle regarding procuring, suppressing, boosting, organizing, publishing, upvoting, down voting, or editing consumer reviews so as to distort what consumers think of a product; 2) addressing incentivized reviews, reviews by employees and fake negative reviews of a competitor; 3) adding a definition of “clear and conspicuous” and saying that a platform’s built-in disclosure tool might not be an adequate disclosure; 4) changing the definition of “endorsements” to clarify the extent to which it includes fake reviews, virtual influencers, and tags in social media; 5) better explaining the potential liability of advertisers, endorsers, and intermediaries; and 6) highlighting that child-directed advertising is of special concern.
You can read about the announcement here:
FTC updated guidance on deceptive reviews
May 9, 2017:
Because of continuing conversations with colleagues, brands, and influencers, I wanted to put some guidelines together for based on the FTC’s native advertising guidelines or influencer disclosure.
The FTC has shot some arrows over the bow in the last several years regarding native advertising disclosure, including calling out Warner Bros. and Lord and Taylor.
In both cases, the brand was held liable, not the influencers or content creators, strongly signaling that it’s the brand’s responsibility to ensure disclosure. But, the FTC native advertising guidelines make it clear: ” …the FTC has taken action against other parties who helped create deceptive advertising content – for example, ad agencies and operators of affiliate advertising networks. Everyone who participates directly or indirectly in creating or presenting native ads should make sure that ads don’t mislead consumers about their commercial nature.”
Basically, no one is off the hook.
As if by magic, the FTC slapped 45 celebrity influencers with warning letters but didn’t forget to include their agents and the brands – in total 90 letters were issued about the FTC native advertising guidelines. It’s safe to say this isn’t going away. It’s always been best practice, but if you didn’t take it seriously before, it’s time to do so now.
My view is this: disclosure and transparency are good for all.
A brand should have no shame about showcasing its products and experiences in a real life scenario. Influencers shouldn’t have shame either, because working with a brand is a badge of honor. It’s a real compliment to a community that a brand values their eyeballs. If you’re ashamed of working with a particular brand or influencer, perhaps you’re working with the wrong partner.
Often times when I have conversations about disclosure with brands and influencers, I get questions like “what if…we do….”
Whether you are a brand or an influencer, if you’re asking questions about how to get around these guidelines, you’re on the wrong track. The guidelines make it very clear: make it obvious to an uneducated viewer that there is a material relationship (basically, anything which might effect the outcome of the endorsement). Influencers are often concerned about “selling out” their community. As an influencer, if you’re making a living from your community with native advertising and you’re not disclosing those relationships, you’re REALLY selling them out.
The Edelman Trust Barometer makes it clear: trust is in crisis.
Establishing trust and adhering to guidelines is necessary for native advertising and influencer relations to continue. If trust is eroded the FTC guidelines won’t be at fault for the collapse of social native advertising.
So here are the guidelines based on reading hundreds of pages including all of the FTC links provided below.
When do social media influencers need to disclose a relationship with a brand?
Always.
Does this apply to me?
Yes.
Why does it matter?
The FTC says it does.
Consumer trust is important to all of us.
How do I disclose?
Make it “clear and conspicuous” and leave no doubt.
If you want to read through the FTC’s own words on this:
FTC Native Advertising Guideline Resources
Native Advertising: A Guide For Business
FTC Endorsement Guidelines: What People Are Asking (2015)
The Lord & Taylor Disclosure Case-FTC Blog (2015)
The Warner Bros Disclosure Case-FTC Blog (2015)
Enforcement Policy Statement On Deceptively Formatted Ads (2015)
