Whether it’s on Instagram, TikTok, Pinterest or Facebook, influencer marketing has become an increasingly popular way for businesses to reach potential customers.
However, since always more people are engaging in this type of marketing and business, it’s become important to also regulate it. That’s why the Federal Trade Commission (FTC) has issued its influencers guidelines, to enhance transparency in the use of influencers marketing.
In this article, we’ll go through the latest FTC Requirements for Influencers and explain everything you need to know about it.
The Federal Trade Commission issued its influencer guidelines to stop deceiving advertising.
Transparency is of the utmost importance here. So if you’re a business using influencer marketing or you’re an influencer sponsoring a product, you always need to disclose that. A clear and conspicuous disclosure ensures that consumers are aware of your endorsement and they can weigh its value independently
A disclosure is always needed when the influencer has a “material connection” with the brand. A material connection includes:
The FTC influencers guidelines are meant for a US public, but they can apply abroad if “it’s reasonably foreseeable that the post will affect U.S. consumers”. At the same time, foreign laws can apply to US businesses.
Once you get the job and sign a contract with a brand, there are a few best practices you need to follow:
Not complying with these guidelines means that the Federal Trade Commission can take enforcement action against you. These actions can include fines, legal action, and cease and desist orders.
For example, in 2017, the FTC settled with Lord & Taylor over its influencer marketing campaign. Lord & Taylor paid 50 online fashion influencers to post Instagram pictures of themselves wearing the same dress from the new collection, but failed to disclose they had given each influencer the dress, as well as thousands of dollars, in exchange for their endorsement.
As a marketer, you need to keep in mind that there are many guidelines and laws regulating your business. And it can be hard to keep up!
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