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. The sponsoring brand may also be tagged when applicable. 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.. Don’t disclose sponsorship in the comments or attempt to bury disclosure among other hashtags. Following the FTC’s rules keeps you on the right side of the law. Now, the FTC came up with a new format that targets influencers specifically: Disclosures 101 for Social Media Influencers. This guidance builds on the FTC’s existing Endorsement Guides and a 2017 question-and-answer document, but with simplified language and clearer (and more modern) examples. The following infographic should not be taken as legal advice. Place disclosure hashtags at the beginning of a social description or blog post. Want to work with us on your next campaign? not require the user to scroll to see the sponsorship information. Sponsored tweets must include #ad or #paid, preferably near the beginning of the tweet. 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. Category: Advertising and Marketing. Endorsements are an important tool for advertisers and they can be persuasive to consumers. 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. 15 U.S.C. 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. FTC challenges claims aimed at older consumers, Public comment periods for Funeral Rule and Endorsement Guides extended, FTC takes on unproven health claims and “own-dorsements”, FTC’s Teami case: Spilling the tea about influencers and advertisers, FTC challenges Online Trading Academy’s money-making claims, Endorsement Guides: The FTC wants your feedback, FTC alleges deception in “unbiased” review site’s ratings and rankings, Consumer reviews: The FCRA upshot of fighting ire with fire, FTC consumer protection year in review offers 2020 vision for your business, Joint venture? 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. If you endorse a product through social media, your endorsement message should make it obvious when you have a … Advice for Social Media Influencers. 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. Influencers and brands should reference FTC influencer guidelines directly at FTC.gov for more information and can contact email@example.com to ask any questions about FTC disclosures.. Update: The FTC updated their FTC influencer guidelines about disclosures in November 2019. ... Cor June 24, 2019 at 8:55 pm - Reply. The FTC has responded with efforts to clarify its endorsement and disclosure guidelines, all in the name of protecting consumers. 45) to the use of endorsements and testimonials in advertising. But if advertisers don’t follow the guides, the FTC may decide to investigate whether the practices are unfair or deceptive under the FTC Act. These guidelines have been around since the eighties. It’s not as if they don’t already have standards and guidelines, but soon it should be made more clear since The Deceptive Marketing Practices Digest, Volume 1 doesn’t seem to have brought about the level of transparency it expected. To ensure that “material connections” between brands and influencers are clearly and fully disclosed, the FTC has put forth guidelines […] Recent developments demonstrate the FTC’s continued interest in social media endorsements.. First, in an effort to provide additional guidance on its endorsement policies, the FTC again updated its Endorsement Guide (the “Guides”) frequently asked questions (“FAQs”). 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. November 4, 2019. The companies and their influencers followed all the FTC rules about disclosure. or any other hashtag that doesn’t clearly convey nature of sponsored content. FTC challenges disease treatment claims for aloe and cranberry products, Great American Fake-Off? While brand owners often benefit from the endorsement of online and social media “influencers,” such endorsements must not mislead consumers as to the relationship between the brand and individual endorsing the brand’s products or services. #collab, or #ambassador. Federal Trade Commission for the guidance of the public in conducting its affairs in conformity with legal requirements. 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. The guide includes pointers on when a disclosure is necessary and examples of both effective and ineffective types of disclosures. 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. Disclosing on the homepage does not replace the need to disclose on individual sponsored blog posts. The Guides provide The guidelines themselves are the same ones the FTC has previously shared, but this time the regulator has made its guide more user-friendly with condensed language, fresh examples, and … The FTC’s endorsement guides establish guidelines for advertisers. or any other ambiguous hashtags that do not clearly communicate the sponsorship or fail to verbally disclose sponsorship if sponsored content is a video. Additionally, content creators must disclose when they have a family relationship with a brand. Advertisers shouldn’t encourage endorsements using features that don’t allow for clear and conspicuous disclosures.”).. That is why the U.S. Federal Trade Commission (FTC) created Endorsement Guidelines that explain key influencer marketing guidelines and examples for companies to use. Media Resources. § 45(l). Verbally disclosures must come as close to the beginning of videos, podcasts, or other sponsored content as possible. 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. Nick: Well, the FTC has actually published endorsement guidelines that apply generally to anyone who markets and endorses products. In November 2019, it also released a guide simplifying the information and giving clear examples. 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. Preferably design advertisements so that “scrolling” is not necessary in order to find a disclosure. Brands need to follow these communication guidelines as well to avoid getting in trouble with the FTC. If an entire Snapchat Story is sponsored, the disclosure should appear on the first or second Snap of the Story. 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. Ambiguous or unclear hashtags—#spon, #sp, #collaboration—should be avoided. It’s necessary for brand marketers to understand and comply with Google and the FTC. Use plain language and syntax so that consumers understand the disclosures. And a growing number of brands have become interested in collaborating with social media influencers. Place the disclosure before the “more” button and at the beginning of the content description, if possible. This article was originally published by Frankfurt Kurnit Klein+Selz.. If an entire Snapchat Story is sponsored, the disclosure should appear on the first Snap of the Story. If a brand or influencer violates the guidelines, it can face a fine or legal action. Currently, there's no direct action being taken to revise the FTC's endorsement guidelines. 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. Canada Rolls Out FTC-style Endorsement Guidelines Beginning 2017. Some takeaway points include: Material connections must be disclosed. The FTC guidelines are clear: The buck stops with the advertiser when it comes to the disclosure of endorsements. Required disclosures must be clear and conspicuous. 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. 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. And they cover, you know, anything that's an advertisement or an endorsement. Simply stated, endorsements must not be misleading and reflect the honest opinion of the endorser. The FTC is seeking input from stakeholders on revisions to the FTC guidelines. Advertisers should consider its placement in the ad and its proximity to the relevant claim. Charli D’Amelio vs. Addison Rae: Who’s The Most Famous TikToker? If sponsored content is a video, disclose sponsorship. Trust the FTC to Create Trust. FTC Endorsement Guidelines 2019 [Infographic] 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. 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. The FTC has enforcement or administrative responsibilities under more than seventy laws. 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 (@FTC) November 5, 2019 "That's because an endorsement is an advertisement that the influencer is making on the advertiser's behalf," Atleson says. Written disclosures must employ clear wording, such as “This post is sponsored by…”. § 45. 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. There has been a tremendous increase in the popularity of social media influencers among brands. Instagram’s built-in paid partnership tag is not considered sufficient disclosure by the FTC. 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. More Videos. The following are some of the FTC’s recommendations for sponsorships on: While knowing platform-specific FTC endorsement guidelines can be helpful, the FTC is more concerned about the types of disclosure and less with how each disclosure appears on any given social media platform. FTC challenges arthritis pain relief claims, Disclosures 101: New FTC resources for social media influencers, You had me at aloe? The FTC announced yesterday that it is looking for feedback on whether to modify its endorsement guidelines, which were enacted in 1980 and haven’t been updated since 2009. Disclosure should also be made verbally if. When using the paid partnership tag, include additional proper disclosure. Special Focus July 7, 2020 July 7, 2020 B2BNN Newsdesk. 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. 9 Wake Forest L. Rev. Avoid using phrases or hashtags that are unclear or ambiguous, such as #sp, #spon. 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. For lengthy sponsored livestreams, disclose periodically throughout the livestream . In addition, the FTC published three videos that outline how influencers should disclose their connection to a brand. In 2017, the FTC settled its first social media deceptive endorsement case. In both verbal and written form, disclosures should appear close to the beginning of the video; for written disclosures, words must remain on the screen long enough to be read and understood. Display disclosures before consumers make a decision to buy, before the CTA. In September 2017, the FTC launched its first foray into influencer marketing enforcement. If the blogger was paid, it … directly on sponsored content. Avoid using ambiguous verbiage such as “Thanks to…” or other phrases that do not clearly denote the relationship between brand and social influencer. The FTC has also stepped-up its own investigations into deceptive online endorsements. 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. 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. 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. Sponsored Snaps or Snapchat Stories must have #ad, #sponsored, or #paid written. Otherwise, the company will risk civil penalties or even a contempt charge in federal court. [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. The FTC established the “Guides Concerning the Use of Endorsements and Testimonials in Advertising,” to regulate […] 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. 07.25.2019. 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