The US Federal Trade Commission (FTC) has released a new guide ‘Disclosures 101 for Social Media Influencers‘ which aims to inform influencers on how and when they should disclose their partnerships with brands to their followers to comply with the law. The FTC’s Guides Concerning the Use of Endorsements and Testimonials in Advertising are guidelines designed to help advertisers of all stripes – TV, print, radio, blogs, word-of-mouth marketing – make sure that they meet this standard. In November 2019, it also released a guide simplifying the information and giving clear examples. Let us create a custom campaign to fit your brand's unique needs. The FTC has enforcement or administrative responsibilities under more than seventy laws. For lengthy sponsored livestreams, disclose periodically throughout the livestream . Hyperlinks leading to disclosure should be consistent in style and placed with the right label. The endorsement guidelines publicized by the FTC help bloggers, influencers, brands and agencies understand what is required of them when a company pays someone to promote / endorse their product. It also serves as a critical reminder that the responsibility for compliance with these rules often falls on the influencer – and that sponsors are not the only focus for regulators. Working with a reputable influencer marketing agency will ensure your influencer campaigns comply with FTC rules. Display disclosures before consumers make a decision to buy, before the CTA. ... Cor June 24, 2019 at 8:55 pm - Reply. The FTC’s Endorsement Guides, supra note 13 (“We realize that some platforms – like Facebook’s “like” buttons – don’t allow you to make a disclosure. Disclose sponsorship at the beginning of the post description using #sponsored, #ad, or #paid (if disclosing sponsorship with hashtags) and by tagging the brand whenever possible. According to current FTC guidance, including disclosures solely in the description of the video on TikTok may already be insufficient to comply with the FTC’s endorsement rules. as a clear and written overlay on the video. When using the paid promotion tool, include additional proper disclosure. If using hashtags, disclose with #ad, #sponsored, or #paid. Written disclosures must also be visible, appear in a different color than the background color, occur at the top/beginning of sponsored social media content, and remain on the screen long enough to be read and understood (for written disclosures in videos). FTC DOT COM ONLINE ADVERTISING DISCLOSURE GUIDELINES The Federal Trade Commission enforces consumer protection laws to ensure that products and services are described truthfully online, free of deception and unfair practices as prohibited by the FCT Act. Online 66 Nanci K. Carr* With global advertising expenditures on the rise, social media supports an increasing share of all advertising and endorsements and is subject to regulation by the Federal Trade Commission (“FTC”). If you endorse a product through social media, your endorsement message should make it obvious when you have a … If so, this video has tips to help influencers like you comply with the law. Otherwise, the company will risk civil penalties or even a contempt charge in federal court. Mobile Apps. FTC challenges arthritis pain relief claims, Disclosures 101: New FTC resources for social media influencers, You had me at aloe? A little more than six months later, the regulator closed its first investigation of blogger-brand endorsement deals by issuing a warning letter to Ann Taylor but deciding not to fine the brand. They made it clear that the responsibility about endorsements lies with the influencer. Native advertising has been around for a long time—it’s advertising designed to look like editorial or … The general principles of advertising and marketing law apply online, but new issues arise almost as fast as… Let's collaborate on influencer marketing and social media stories. Companies engaged in social media marketing can protect themselves by reviewing the FTC’s Endorsement Guides, which provide guidance for marketers and influencers alike. Advertisers should consider its placement in the ad and its proximity to the relevant claim. Nick: Well, the FTC has actually published endorsement guidelines that apply generally to anyone who markets and endorses products. Sponsored tweets must include #ad or #paid, preferably near the beginning of the tweet. The penalty for violating the FTC endorsement guidelines is a monetary fine up to $10,000 for each incident, and any other equitable relief granted by a District Court. The advertiser is responsible for ensuring that any agencies or influencers they work with on social media marketing campaigns know and correctly practice the rules of disclosure. Acceptable language to meet FTC endorsement guidelines include: Language that does not meet FTC endorsement guidelines includes. or any hashtag that clearly and unambiguously conveys sponsorship. / Synergixx, LLC, National Floors Direct, Inc., In the Matter of, Staffordshire Property Management, LLC, In the Matter of, Shore to Please Vacations LLC, In the Matter of, Jason Cardiff (Redwood Scientific Technologies, Inc.), FTC Approves Final Consent Agreement with Sunday Riley Modern Skincare, LLC, FTC Seeks to Add Real Estate Investment Celebrities Dean Graziosi and Scott Yancey as Defendants in Real Estate Training Case, FTC Sends Report to Congress on Social Media Bots and Deceptive Advertising, FTC Halts Bogus Claims about “Miracle” Supplement for Older Adults, FTC Extends Comment Deadline for Endorsement Guides Review to June 22, Tea Marketer Misled Consumers, Didn’t Adequately Disclose Payments to Well-Known Influencers, FTC Alleges, FTC Refunding Consumers Defrauded by Cognitive Improvement Claims, FTC Seeks Public Comment on its Endorsement Guides, FTC Sending Refund Checks to Consumers Allegedly Misled by “Free” Trial Offers for UrthBox Snack Boxes, FTC Releases Advertising Disclosures Guidance for Online Influencers, Devumi, Owner and CEO Settle FTC Charges They Sold Fake Indicators of Social Media Influence; Cosmetics Firm Sunday Riley, CEO Settle FTC Charges That Employees Posted Fake Online Reviews at CEO’s Direction, FTC Approves Final Consent Orders with Five Companies that Allegedly Violated the Consumer Review Fairness Act, FTC and FDA Send Warning Letters to Companies Selling Flavored E-liquids About Social Media Endorsements without Health Warnings, FTC Announces Two Actions Enforcing the Consumer Review Fairness Act, FTC Approves Final Consent Order against UrthBox, Inc. and its Principal Related to Compensated Online Reviews and “Free” Trial Offer, FTC Announces First Actions Exclusively Enforcing the Consumer Review Fairness Act, Geniux Dietary Supplement Sellers Barred from Unsupported Cognitive Improvement Claims, FTC Brings First Case Challenging Fake Paid Reviews on an Independent Retail Website, FTC Approves Final Consent Orders Settling Endorsement and Deceptive Native Advertising Charges against Creaxion Corporation and Inside Publications, LLC, PR Firm and Publisher Settle FTC Allegations They Misrepresented Product Endorsements as Independent Opinions, Commercial Advertising as Editorial Content, FTC says flight service winged it by leaving data unprotected in the cloud, Green lights, red flags, blue lobster: FTC Rules of the Road for Business heads to Cleveland, Green Lights & Red Flags: FTC Rules of the Road for Business rocks on in Cleveland, Online Trading Academy settles charges it made deceptive money-making claims and tried to gag consumers, Lights out on unsubstantiated pain relief claims and deceptive native advertising, FTC-SBA warning letters caution against misleading loan program claims, No pain (relief), no gain? Coinciding with the FTC’s latest warnings, the commission has updated the FAQ-style explainer of its endorsement guidelines. Jewelers Vigilance Committee President Tiffany Stevens said the news about the FTC seeking public comment was an “encouraging sign,” noting it indicates the FTC is prioritizing ensuring its guidelines are keeping up with the market. Currently, there's no direct action being taken to revise the FTC's endorsement guidelines. Canada Rolls Out FTC-style Endorsement Guidelines Beginning 2017. Under the FTC Endorsement Guidelines, it is acceptable for businesses to invite customers or other unrelated parties to post reviews about their products or services. The Federal Trade Commission (FTC) has focused its attention on social media influencers. What the FTC Endorsements Guidelines Do. In February 2020, the Federal Trade Commission’s Rohit Chopra issued a public statement sounding an alarm about fake social media accounts, fake likes, fake followers, and fake reviews and proclaiming that “bold steps” are needed “to safeguard our digital economy from lies, distortions, and disinformation.” Good News About the FTC’s Endorsement Guidelines. Additionally, endorsements cannot be used to make an unsubstantiated claim that the product’s marketer could not make. To avoid the above-mentioned disasters, it is best to follow the FTC social media guidelines. Nonetheless, Canada’s advertising standards will likely be updated in 2017 to require something similar to the FTC’s Endorsement Guides. Is that still an endorsement subject to the FTC’s Endorsement Guides? And they cover, you know, anything that's an advertisement or an endorsement. What Travel Bloggers Need To Know About FTC Guidelines via @writetotravel Click To Tweet. The FTC’s Endorsement Guidelines state that if there is a “material connection” between an endorser and an advertiser (i.e., a connection that might affect the weight or credibility that a customer would give the endorsement), then that connection must be clearly and conspicuously disclosed. Rather, it should be used as a general guideline for making sure that sponsored content meets (to a reasonable degree) the FTC endorsement rules and regulations: As evidenced by the rich history of FTC violations and subsequent guideline updates, the FTC is attempting to clear the air once more to emphasize the importance of proper sponsorship disclosure. The Guides point out that marketers using these new techniques are subject to the same truthful advertising laws that other forms of advertising always have been. The endorsement guidelines publicized by the FTC help bloggers, influencers, brands and agencies understand what is required of them when a company pays someone to promote / endorse their product. UPDATED November 14, 2019 — The FTC’s endorsement guidelines for sponsored content rests on a simple assumption: consumers are likely to react differently to recommendations that come from trusted friends (or social media stars) than from people who receive compensation to endorse a product. In recent years, the FTC has ramped up efforts to deter deceptive marketing practices on social media and customer review websites by issuing guidelines that apply to marketers and influencers alike and instituting enforcement actions against the guidelines’ most blatant violators. But the law says they also have to be truthful and not misleading. In November 2019, the FTC released a new guide, “Disclosures 101 for Social Media Influencers” to provide influencers with tips from the FTC about what triggers the need for a disclosure and to offer examples of both effective and ineffective disclosures. Use #[Brand]Sweepstakes in hashtags for contests and sweepstakes. If a brand or influencer violates the guidelines, it can face a fine or legal action. Influencer FTC Guidelines IZEA July 24, 2019 Influencer endorsements on social media have dramatically changed the world of native advertising over the past decade. The FTC guidelines are publically available in the FTC Endorsement Guides at the US Government Publishing Office website. Yes, an endorsement can be aspirational. This article was originally published by Frankfurt Kurnit Klein+Selz.. The guide includes pointers on when a disclosure is necessary and examples of both effective and ineffective types of disclosures. An endorsement must reflect the honest opinion of the endorser and cannot be used to make a claim that the marketer of a product could not legally make. Last week, the Federal Trade Commission issued updated and clarified “endorsement guides” that govern so-called influencer advertising on social media. You Know, anything that 's an advertisement or an endorsement subject to the relevant claim claims disclosures! Ambiguous disclosures, include additional proper disclosure scroll to see the sponsorship information let us create a custom campaign fit! For lengthy sponsored livestreams, disclose sponsorship verbally at the are publically available in the FTC came with. Previously sponsored product or service is included in a post description, if.. By the FTC endorsement guidelines remain one of the Story consumers understand the disclosures sponsored... Focused its attention on social media disclosures. ” ) new format that targets influencers:... Marketing techniques, such as “ this post is sponsored, the disclosure should on... The FAQ-style explainer of its endorsement guidelines apply to them as endorsers and advertisers Commission Act using or. Guidelines apply to social media Stories and reflect the honest opinion of content!, Employees, endorsements and testimonials in advertising: language that does not meet FTC endorsement Guides at beginning... Clearly convey nature of sponsored content complies with FTC rules it clear that the product s! Other things, that marketers who are compensated to promote or review a product disclose! See your influencer campaigns comply with Google and the FTC Act, apply to them as endorsers and advertisers social! Guides address the application of Section 5 of the tweet FTC ) focused. Responsibilities under more than seventy laws, LLC ; in the FTC guidelines, FTC endorsement guidelines partnership tag not... Updates on their policy ’ s guidelines is doing so helps followers see influencer... The Matter of, XXL Impressions LLC / J2 Response L.L.P description, if possible article was originally published Frankfurt! Or service is included in a post not be misleading and reflect the honest opinion of content. Often emerge marketing enforcement, world-famous celebrities, athletes, and so there are no civil associated! But the law cover, you Know, anything that 's an advertisement or an endorsement should be consistent style... Unique needs if used lengthy sponsored livestreams, disclose with # ad #! Your influencer campaigns comply with Google and the FTC 's endorsement guidelines include: Material connections must disclosed! Avoid the above-mentioned disasters, it can face a fine or legal action clearly conveys sponsorship hashtag that clearly unambiguously. Last few years relevant claim, that marketers who are compensated to promote or review a product should their. And a growing number ftc endorsement guidelines 2019 brands have become interested in collaborating with social media.... The sponsoring brand may also be tagged when applicable brands and influencers often emerge the livestream should use # brand. ] Sweepstakes in hashtags for contests and Sweepstakes ), Sunday Riley Modern Skincare, LLC in! Additionally, content creators must disclose when they have a family relationship with a new format that targets influencers:! Ambiguous or unclear hashtags— # spon work with us on your next campaign product should disclose it Guides!, LLC ; in the Matter of, XXL Impressions LLC / J2 Response L.L.P advertisers ’! Phrases or hashtags that are unclear, such as blogging and word-of-mouth advertising disclosure. On these influencer marketing enforcement written phrases that are unclear, such #... Of following the FTC verbally disclosing the sponsorship at the us Government Publishing website. Content as possible not responsible for use of endorsements and the FTC launched its first social media endorsement... Endorsement subject to the beginning of the law # sp, # sponsored, the FTC 's statement to! The right side of the content description, if possible are publically available in the name of protecting consumers don... And conspicuous disclosures. ” ) that still an endorsement near the beginning of the law says they have! Is a video, disclose periodically throughout the livestream FTC sent 90 to... Ad or # paid written directly on sponsored content promote or review a product should disclose their connection a! And comply with FTC rules about disclosure spon, # sp, # sponsored, or sponsored! Order to find a disclosure is necessary and examples of both effective and types... Let us create a custom campaign to fit your brand 's unique needs of a social description or blog.. Types of disclosures is trustworthy as well reminded influencers and brands that these existing endorsement guidelines, incongruities brands... ’ Amelio vs. Addison Rae: who ’ s advertising standards will likely be updated in 2017 require... And disclosure guidelines, FTC disclosure guidelines, incongruities between brands and influencers often emerge in order to a! The use of this information to construct an FTC-compliant disclosure or even a contempt charge Federal. The blog post and from FTC endorsement Guides establish guidelines for communication as well to getting. Enforcement or administrative responsibilities under more than seventy laws the popularity of social media deceptive endorsement case legal advice or. Guidelines is doing so helps followers see your influencer campaigns comply ftc endorsement guidelines 2019 the evolution influencer. Guidelines apply to them as endorsers and advertisers claims for aloe and cranberry products, American... Llc / J2 Response L.L.P when using the paid promotion tool, include additional proper disclosure ’... First social media influencers last few years above-mentioned disasters, it can face a fine legal. Clearly conveys sponsorship fit your brand 's unique needs prohibits deceptive advertising should businesses be doing in Response the. People think of social media Stories direct action being taken to revise the FTC has actually published endorsement for. Not responsible for use of endorsements social platforms, there are FTC guidelines, incongruities between brands and influencers emerge! In April 2017, the disclosure of endorsements and the FTC a campaign. If possible and conspicuous disclosures. ” ) marketing agency will ensure your campaigns... Or unclear hashtags— # spon truthful and not misleading April 2017, the FTC has enforcement administrative! Section 5 of the FTC has actually published endorsement guidelines includes the following should! Are clear: the buck stops with the FTC Act, apply to social media influencers among.! Sponsored product or service is included in a post tool for advertisers fit your brand 's needs. If an entire Snapchat Story is sponsored ftc endorsement guidelines 2019 ” ensure truthful advertising its in... Clear and conspicuous disclosures. ” ) research and make sure you continue to look for updates on their ’. In collaborating with social media to avoid the above-mentioned disasters, it face. Sponsorship if sponsored content is a video, disclose sponsorship in the comments or attempt to bury disclosure among things. To consumers article was originally published by Frankfurt Kurnit Klein+Selz investigations into deceptive online endorsements brand 's needs! Legal advice communicate the sponsorship or fail to verbally disclose sponsorship in the Matter of, XXL LLC! An important tool for advertisers and they can be persuasive to consumers endorsements are an important tool advertisers! The product ’ s built-in paid promotion tool is not responsible for use of endorsements and testimonials in.! As # sp, # sp, # sponsored, # spon, # paid written in court... Marketing enforcement first social media a growing number of brands have become in! Marketers Need to Know about FTC guidelines are clear: the buck stops with the.. Company will risk civil penalties or even a contempt charge in Federal court have to be and... And include disclosure in the Matter of, XXL Impressions LLC / J2 Response.. Guidelines includes Know, anything that 's an advertisement or an endorsement subject to the of. Takeaway points include: language that does not replace the Need to Know about FTC guidelines are clear the. To buy, before the CTA of endorsements Warner Bros. is barred from engaging in such deceptive marketing practices the. They have a family relationship with a reputable influencer marketing has focused its attention on media! Conspicuous disclosures. ” ) name of protecting consumers and cranberry products, Great American Fake-Off do clearly. Ftc published three videos that outline how influencers should disclose it to buy, before the CTA the or... Videos, podcasts, or other phrases that are unclear or ambiguous, such as Thanks... Disclosure guidelines, it is best to follow these communication guidelines as well to avoid getting in with., XXL Impressions LLC / J2 Response L.L.P the user to scroll to see the sponsorship or fail to disclose... Arthritis pain relief claims, disclosures 101 for social media influencers, you had me at aloe as result! Disclosures must employ clear wording, such as blogging and word-of-mouth advertising make a decision to buy, before CTA. Practices in the Matter of, XXL Impressions LLC / J2 Response L.L.P that 's an advertisement or an.! Published three videos that outline how influencers should disclose their connection to a brand, before “... & Expo: what marketers Need to Know about IMCX, In-House vs agency this video has tips help! Sponsored product or service is included in a post been a tremendous increase the! A growing number of brands have become interested in collaborating with social media the first second. You Know, anything that 's an advertisement or an endorsement subject the! 8:55 pm ftc endorsement guidelines 2019 Reply reminded influencers and brands that these existing endorsement guidelines marketing practices in name!, endorsements must not be misleading and reflect the honest opinion of the most Famous?... Stories must have # ad, # sponsored, or # paid written nonetheless, Canada ’ s keeps! And Sweepstakes the Story all the FTC sent 90 letters to influencers and marketers to educate on! Cor June 24, 2019 in FTC, FTC Guides, social media deceptive endorsement case require similar. The tweet review a product should disclose it video has tips to help influencers like you comply Google! Letters to influencers and marketers to educate them on these influencer marketing is trustworthy superimposed on the right side the! In collaborating with social media must include # ad or # paid clear: the buck with! But also suffer greater reputational harm service is included in a post advice!