§ 45(l). Place the disclosure before the “more” button and at the beginning of the content description, if possible. The FTC established the “Guides Concerning the Use of Endorsements and Testimonials in Advertising,” to regulate […] [Infographic] See The Updated FTC Endorsement Guidelines here: The Influencer Marketing Industry Global Ad Spend: A $5-$10 Billion Market By 2020 [CHART], INFLUENCER MARKETING 2019 INDUSTRY BENCHMARKS, 8 Brands Doing Coronavirus Influencer Marketing Right on Instagram and TikTok, 10 TikTok Marketing Campaigns: How Brands are Using TikTok Influencers, The Best Influencer Marketing Case Studies: Campaigns From Top Brands, Influencers, & More. Yes, an endorsement can be aspirational. On November 5, 2019, the United States Federal Trade Commission (“FTC”) issued a guide entitled “Disclosures 101 for Social Media Influencers” and a video “Do you endorse things on social media?” to alert influencers to the laws governing endorsement or recommendation of products or services and provide social media influencers with “tips on when and how to make good disclosures.” However, this is a good opportunity for businesses to evaluate their current marketing practices, especially if they utilize social media platforms and influencer endorsements. Under section 255.5 of the FTC endorsement guidelines, endorsers must “fully disclose” any connection between themselves and the brand “that might materially affect the weight or credibility of the endorsement.” Those that violate the FTC’s endorsement guidelines will be in violation of section 5 of the FTC Act. 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. 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.” Its primary authority was granted under the Federal Trade Commission Act. Canada Rolls Out FTC-style Endorsement Guidelines Beginning 2017. Ambiguous or unclear hashtags—#spon, #sp, #collaboration—should be avoided. December 2, 2019 in FTC, FTC Disclosure Guidelines, FTC Endorsement Guidelines, FTC Guides, Social Media. Simply stated, endorsements must not be misleading and reflect the honest opinion of the endorser. Resources: The FTC brought action against two popular YouTubers who violated endorsement guidelines by promoting the gambling site CSGO Lotto on their personal social media accounts from November 2015 to June 2016 without disclosing that they owned the website. Use plain language and syntax so that consumers understand the disclosures. Following the FTC’s rules keeps you on the right side of the law. use ambiguous words or phrases such as #sp, #spon, #collaboration, “Thanks to…” or “Video made possible by…”. The FTC’s endorsement guidelines, through the FTC Act, apply to social media influencers. While the FTC endorsement guidelines have always aimed to convey transparency to digital consumers, influencers have either been unaware of best practices, found ways to conceal ads, or ignored the guidelines altogether. I got an email from the FTC (I’m Canadian, living, working in Canada, website registered in Canada) that I was not in compliance with their disclosure policy for blogs and affiliates. Otherwise, the company will risk civil penalties or even a contempt charge in federal court. Influencer marketing has the potential to yield high ROI, however, the relationship between brands and influencers must be disclosed in order to ensure compliance with the governing body (the FTC) that dictates whether sponsored content is acceptable or not. 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. But the law says they also have to be truthful and not misleading. What the FTC Endorsements Guidelines Do. If so, this video has tips to help influencers like you comply with the law. Share 2. / 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? If using hashtags, disclose with #ad, #sponsored, or #paid. “Thanks to…” or “Video made possible by…”. Disclosure should also be made verbally if. Related Videos. 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. Verbally disclosures must come as close to the beginning of videos, podcasts, or other sponsored content as possible. Place disclosure hashtags at the beginning of a social description or blog post. When using the paid partnership tag, include additional proper disclosure. Additionally, content creators must disclose when they have a family relationship with a brand. Written disclosures must employ clear wording, such as “This post is sponsored by…”. On November 5, 2019, the United States Federal Trade Commission (“FTC”) issued a guide entitled “Disclosures 101 for Social Media Influencers” and a video “Do you endorse things on social media?” to alert influencers to the laws governing endorsement or recommendation of products or services and provide social media influencers with “tips on when and how to make good disclosures.” It’s an endorsement if the blogger is explicitly or implicitly expressing his or her views about the sports car (e.g., “I want this car”). 45) to the use of endorsements and testimonials in advertising. They made it clear that the responsibility about endorsements lies with the influencer. 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. May. Proper disclosure must be provided each time a previously sponsored product or service is included in a post. 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. Disclosing on the homepage does not replace the need to disclose on individual sponsored blog posts. And a growing number of brands have become interested in collaborating with social media influencers. Notably, this new guidance comes more than two years after the FTC began to increase its attention on influencer marketing, as shown by the letters sent to brands, celebrities, and influencers alerting them of disclosure requirements, and ahead of what may be a significant re-visit to the endorsement guidelines themselves in the near future. Media Resources. 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. 14, 2019 The Federal Trade Commission’s endorsement guidelines remain one of the most confusing aspects of influencer marketing. 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. If the blogger was paid, it … Another benefit of following the FTC’s guidelines is doing so helps followers see your influencer marketing is trustworthy. In 2018 and 2019, Influencer Marketing Hub estimated that somewhere between 25% and 30% of influencers were … The revised web endorsement policy of the Federal Trade Commission had consumer groups clapping their hands in agreement, but web advertisers and bloggers alike don’t like it one bit. ... Cor June 24, 2019 at 8:55 pm - Reply. Federal Trade Commission for the guidance of the public in conducting its affairs in conformity with legal requirements. If a brand or influencer violates the guidelines, it can face a fine or legal action. 15 U.S.C. Acceptable language to meet FTC endorsement guidelines include: Language that does not meet FTC endorsement guidelines includes. In addition, the FTC published three videos that outline how influencers should disclose their connection to a brand. — FTC (@FTC) November 5, 2019 "That's because an endorsement is an advertisement that the influencer is making on the advertiser's behalf," Atleson says. The FTC guidelines are clear: The buck stops with the advertiser when it comes to the disclosure of endorsements. Do you recommend or endorse things on social media? Click the button to get in touch. Sponsored Snaps or Snapchat Stories must have #ad, #sponsored, or #paid written directly on sponsored content. FTC Rules for Influencers – Here are the Key Takeaways for Brands 08 Apr 2019 There has been a tremendous increase in the popularity of social media influencers among brands. For lengthy sponsored livestreams, disclose periodically throughout the livestream . The Guides are not regulations, and so there are no civil penalties associated with them. Good News About the FTC’s Endorsement Guidelines. For endorsements that appear in blogs, disclosure should be written in clear, unambiguous phrases like “This post is sponsored by…” and in a legible font. Don’t disclose sponsorship in the comments or attempt to bury disclosure among other hashtags. Section 5 of the FTC Act generally prohibits deceptive advertising. Office of Equal Employment Opportunity and Workplace Inclusion, Reporting Fraud, Waste, Abuse or Mismanagement, What You Need to Know About the Office of the Inspector General, Companies and People Banned From Debt Relief, Statute, Rules and Formal Interpretations, Post-Consummation Filings (HSR Violations), Retrospective Review of FTC Rules and Guides, Other Applications, Petitions, and Requests, Magnuson-Moss Warranty Public Audit Filings, International Technical Assistance Program, Competition & Consumer Protection Authorities Worldwide, Hearings on Competition & Consumer Protection, List a Number on the National Do Not Call Registry, File Documents in Adjudicative Proceedings, guidelines designed to help advertisers of all stripes, Global Community Innovations LLC, et al. The companies and their influencers followed all the FTC rules about disclosure. Sponsored tweets must include #ad or #paid, preferably near the beginning of the tweet. Green Guides. Say “This post is sponsored by…” or other phrases that clearly conveys sponsorship. More Videos. Other key elements of FTC disclosure guidelines include: Because every social media platform is different, the FTC has different endorsement requirements for sponsored content on YouTube, Instagram, blogs, etc. Hashtags. To that end, the FTC wants to create more transparency in sponsored content by placing more onus on brands and influencers to openly divulge the relationship between companies and the influencers recommending their products or services. 08 Apr 2019. The FTC works to stop deceptive ads, and its Endorsement Guides go into detail about how advertisers and endorsers can stay on the right side of the law.. These guidelines have been around since the eighties. In addition, the Endorsement Guides let endorsers know that they shouldn’t talk about their experience with a product if they haven’t tried it, or make claims about a product that would require proof they don’t have. Firm Selling Social Media Followers and Likes Busted by NYAG In January 2018, the New York Times did an expose on an obscure American company named Devumi that has collected millions of dollars in a shadowy global marketplace for social media fraud. FTC challenges disease treatment claims for aloe and cranberry products, Great American Fake-Off? When the FTC first introduced regulations for bloggers and influencers, each publication written about a product or company had to feature the hashtags #spon or #ad. The FTC new endorsement guidelines apply to a broad range of electronic advertising Medical providers and medical companies can be forced to suspend their electronic advertising, pay fines and penalties, and lose money if their advertising is misleading or deceptive Native advertising has been around for a long time—it’s advertising designed to look like editorial or … Do not place hashtags at the end of the description, require users to click “more” to see the disclosure, include disclosure in the comments section only, or hide disclosure among many other hashtags. Accompany ambiguous disclosures with additional proper disclosure. As a result of the FTC’s charges, Warner Bros. is barred from engaging in such deceptive marketing practices in the future. Mobile Apps. The guide includes pointers on when a disclosure is necessary and examples of both effective and ineffective types of disclosures. 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. For Instagram Stories, disclosure should be superimposed on the image. Disclosures should not appear as written phrases that are unclear, such as “Thanks to…” or “Made possible by…”. The FTC revised its Endorsement Guides in October 2009 to keep them up-to-date with current marketing techniques, such as blogging and word-of-mouth advertising. Instagram’s built-in paid partnership tag is not considered sufficient disclosure by the FTC. Endorsements are an important tool for advertisers and they can be persuasive to consumers. In April 2017, the FTC reminded influencers and brands that these existing endorsement guidelines apply to them as endorsers and advertisers. The FTC guidelines are clear: The buck stops with the advertiser when it comes to the disclosure of endorsements. Working with a reputable influencer marketing agency will ensure your influencer campaigns comply with FTC rules. The FTC has also stepped-up its own investigations into deceptive online endorsements. Want to work with us on your next campaign? 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. The new 2019 FTC endorsement guidelines shift focus onto influencers and their responsibility to understand FTC disclosure guidelines when partnering with brands, underscoring three key components of proper endorsement practices: Based on our experience developing sponsored social media content for global brands, we’ve identified what we believe to be the most important FTC endorsement rules below. Therefore, influencers must comply with the guidelines. If an entire Snapchat Story is sponsored, the disclosure should appear on the first or second Snap of the Story. 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. Click here to learn more. The FTC has offered more guidance in the past on what constitutes proper disclosure—the agency even published a simple Q&A to address marketers’ basic concerns—but the ever-changing nature of social media makes establishing a set of clear-cut rules nearly impossible. If you endorse a product through social media, your endorsement message should make it obvious when you have a … The FTC guidelines are publically available in the FTC Endorsement Guides at the US Government Publishing Office website. 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. For example, advertisers are advised that using unrepresentative testimonials may be misleading if they are not accompanied by information describing what consumers can generally expect from use of the product or service. Avoid using ambiguous phrases like “thanks to…”, attempting to hide written disclosures at the bottom of the video description, or failing to include written and verbal disclosure within the video itself. In September 2017, the FTC launched its first foray into influencer marketing enforcement. And they cover, you know, anything that's an advertisement or an endorsement. The FTC suggests using the hashtag #ad at the beginning of your Tweet or post; This only touches on the FTC disclaimer policy. Jun 16, 2018 - Don't risk violating FTC endorsement guidelines—use our infographic to ensure you properly disclose sponsored content in 2019: Employers, Employees, Endorsements and the Federal Trade Commission. How to Comply With FTC Endorsement Guidelines. If sponsored content is a video, disclose sponsorship. Hyperlinks leading to disclosure should be consistent in style and placed with the right label. Share 1. Disclosures should occur at the beginning of the blog post and. 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. CMWorld 2019 experts offer tips on creating with empathy, pitching martech purchases and helping sales; FTC Endorsement Guidelines: Social Media Dos and Don’ts. Special Focus July 7, 2020 July 7, 2020 B2BNN Newsdesk. 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). The Endorsement Guides also state that if there is a connection between the endorser and the marketer of a product that would affect how people evaluate the endorsement, it should be disclosed. The policy behind the FTC Endorsement Guides is to ensure truthful advertising. In April 2017, the FTC sent 90 letters to influencers and marketers to educate them on these influencer marketing laws. The creator-friendly guidelines serve to inform influencers when and how to properly disclose endorsements to avoid deceptive advertising tactics along with some other helpful reminders. What Travel Bloggers Need To Know About FTC Guidelines via @writetotravel Click To Tweet. Additionally, endorsements cannot be used to make an unsubstantiated claim that the product’s marketer could not make. FTC cases challenge bogus influencer metrics and fake reviews, Green Lights & Red Flags: FTC Rules of the Road for Business, In Short: Advertising & Privacy Disclosures in a Digital World, Majority Statement of Chairman Joseph J. Simons and Commissioners Noah Joshua Phillips and Christine S. Wilson Regarding Final Approval of the Sunday Riley Settlement, Statement of the Commission in the Matter of Teami, LLC, Keynote of Commissioner Noah Joshua Phillips at ANA/BAA Marketing Law Conference - The FTC and the Digital Marketplace: Highlights from the Last Year, Statement of Commissioner Chopra Joined by Commissioner Slaughter Regarding Sunday Riley, Alo, LLC d/b/a Alo Yoga (endorsement claims), Commission Enforcement Policy Statement on Deceptively Formatted Advertisements, Better Business Bureau’s National Advertising Division Annual Conference Keynote Address, Remarks at the Association of National Advertisers’ Advertising Law & Public Policy Conference, Statement of Chairwoman Edith Ramirez, Commissioner Julie Brill, and Commissioner Terrell McSweeny - Federal Trade Commission v. Genesis Today, Inc., Pure Health LLC, and Lindsey Duncan, Keynote Address of Chairwoman Edith Ramirez, A Type of Amplified Word of Mouth Marketing, FTC Policy Statement Regarding Advertising Substantiation, Commission Enforcement Policy Statement Regarding Clear and Conspicuous Disclosures in Television Advertising, Statement in Regard to Advertisements That Appear in Feature Article Format, Blurred Lines: An Exploration of Consumers’ Advertising Recognition in the Contexts of Search Engines and Native Advertising: A Federal Trade Commission Staff Report, Effects of Consumer Testimonials in Weight Loss, Dietary Supplement and Business Opportunity Advertisements (the Second Endorsement Study), The Effect of Consumer Testimonials and Disclosures of Ad Communication for a Dietary Supplement (The Endorsement Booklet Study), Use of Endorsements and Testimonials in Advertising, Divulgaciones 101 para influenciadores de los medios sociales, The FTC’s Endorsement Guides: What People Are Asking, Consumer Review Fairness Act: What Businesses Need to Know, Native Advertising: A Guide for Businesses. 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