Social Media Influencers Are Being Watched by FTC
As of late, social media influencers are on the Federal Trade Commission (FTC)’s radar because of the rise of social media being used as a marketing…
October 03, 2017 at 08:28 PM
4 minute read
The original version of this story was published on Law.com
As of late, social media influencers are on the Federal Trade Commission (FTC)'s radar because of the rise of social media being used as a marketing tool. Due to the high financial stakes involved and the influencers' ability to reach millions of consumers, the FTC is keeping a very close eye on influencer posts.
In fact, the FTC sent warning letters to over 90 social influencers and brands in April 2017 to remind them that, if there is a material connection between a brand and an influencer, then that connection must be disclosed or clear to consumers in materials where the influencer endorses the brand. This has been an increasing issue that needs to be addressed, given that the dollar amount of endorsement contracts between brands and social media influencers including celebrities, athletes and reality stars, who are bringing in as much as seven figures. And, violating FTC advertising requirements could cost influencers and brands a lot of money—not to mention their reputational.
In September 2017, the FTC sent follow-up letters to 21 of those influencers and cited specific social media posts by the influencers that concerned the FTC staff because they did not appear to include required “material connections” disclosures. The FTC requires that commercial relationships between influencers and brands be clearly disclosed or otherwise known to consumers.
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