It could be that young consumers trust the influencer and brand more because they’re upfront about the material connection. The Endorsement Guides were last updated substantially in 2009. The comment deadline for Federal Trade Commission’s (FTC) recent request for public comment to inform planned revisions to its Guides Concerning the Use of Endorsements and Testimonials in Advertising (the Guides) has been extended to June 22, 2020. For instance, Facebook, Instagram, and YouTube offer “branded content tools” that mark posts as promotional or advertising content. FTC Extends Comment Deadline For Endorsement Guidelines - 03/30/2020 June 22 is the deadline for comments about questions like whether children can understand social media disclosures. what, if any, disclosures advertisers or operators of review sites need to make about the collection and processing of publication of reviews to prevent them from being deceptive or unfair. As I said, disclosure (and arguably common sense) is at the heart of these issues. Many aspire to be influencers themselves. The FTC applies the same rules to influencer marketing that they do to all other types of advertising:  the influencer MUST disclose if they are being compensated in some way by the brands they are promoting. On Facebook, Instagram, Twitter, Snapchat, and YouTube, there are a variety of ways to make a material connection disclosure. Guidance. #ad, #sponsored, or #paid followed by brand in caption, Optional, but required if the image does not include a written post or caption, Audible or visual disclosure at the beginning, Sequential stories only require disclosure at the beginning of the series, #ad, #sponsored or #paid followed by the brand is sufficient. Among other things, the Guides state that when there is a connection between an endorser and a seller of an advertised product that could affect the weight or credibility of the endorsement, the connection must be clearly and conspicuously disclosed. Comments provide stakeholders an important opportunity to inform and shape the Guides and FTC enforcement policy which are revisited … 0 Shares 0 Flares × If you are a business owner, you certainly want consumers to trust your brand, like your brand, and, ultimately, purchase from your brand. Influencers and brands should reference FTC influencer guidelines directly at FTC.gov for more information and can contact endorsements@ftc.gov to ask any questions about FTC disclosures.. Update: The FTC updated their FTC influencer guidelines about disclosures in November 2019. For influencers and advertisers to be in voluntary compliance with the law, the FTC Endorsement Guide recommends several important practices, including that: Influencers be bona fide users By Samuel Cohen on September 2, 2020 Posted in Advertising Law, Endorsements, FTC Endorsement Guidelines, Marketing Law, Social Media, Social Media Law. Again according to FTC enforcement letters and guidelines, the disclosure of a material connection: Sometimes this might seem confusing, but it really isn’t. 45) to the use of endorsements and testimonials in advertising. The Federal Trade Commission works to promote competition, and protect and educate consumers. The Endorsement Guides, formally known as the Guides Concerning the Use of Endorsements and Testimonials in Advertising (the Guides), first enacted in 1980 and … As I said, disclosure (and arguably common sense) is at the heart of these issues. By Kimberly Lancaster | March 5, 2020 | Social Media. In the old days of advertising, the CEO of Proctor & Gamble could joke that he knew for certain that half of all his company’s advertising worked . Even retail giant Lord & Taylor has settled claims with the FTC for unfair and deceptive marketing in its use of social media influencers in 2016. Influencer marketing campaigns earn on average $5 in free social media exposure for every $1 spent on influencers (from Influencer Marketing Hub). However, this is a good opportunity for businesses to evaluate their current marketing practices, especially if they utilize social media platforms and influencer endorsements. These rules do not include celebrities or spokespeople who are widely known from other media to be paid promoters of a particular brand. A disclosure statement in the post, caption, or description. 2020 Guide To FTC Influencer & Endorsement Guidelines. The FTC uses a very simple principle when monitoring paid influencer social media promotions: Advertising should be truthful and not misleading. In the new world of social media and influencer marketing, he would know which half was working. In addition to posting new Endorsement Guide FAQs, the FTC settled its first-ever complaint against individual social media influencers. Statement of Commissioner Rohit Chopra Regarding the Endorsement Guides Review, Commission File. Specifically, this past month the FTC announced that it was formally seeking public comment on whether to make changes to the Endorsement Guides, with a notice in the Federal Register asking for submissions by April 21, 2020. The Federal Trade Commission is seeking public comments on whether it should make changes to its Guides Concerning the Use of Endorsements and Testimonials in Advertising (“Endorsement Guides”). The Updated FTC Endorsement Guidelines: What Brands & Influencers Need To Know About FTC Disclosure Guidelines In 2019 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 … But the law says they also have to be truthful and not misleading. Even though the branded content symbol is a) clear and b) prominent, it is not c) central. Endorsements are an important tool for advertisers and they can be persuasive to consumers. Commissioner Rohit Chopra issued a separate statement. . The Federal Trade Commission is extending by sixty days the deadline to submit comments as part of the agency’s review of its Endorsement Guides. A hashtag disclosure in the post, caption, or description. Using a formula of $100 x 10,000 followers + extras = total rate, you can see how quickly the dollars can roll in for influencers. The FTC announced in February that it would accept comments on a wide range of issues related to the Endorsement Guides. No P204500 The FTC has tips to help your company comply with the law. If you pay an influencer to pitch your product on social media, but it’s not obvious that person is being paid to pitch the product, that’s misleading. Guides Concerning the Use of Endorsements and Testimonials in Advertising ... Federal Trade Commission for the guidance of the public in conducting its affairs in conformity with legal requirements. In fact, brand marketers are now facing the opposite problem. In December 1972, the Commission published for public comment proposed Guides Concerning the Use of Endorsements and Testimonials in Advertising, 37 FR 25548 (1972). That percentage doubles for consumers under the age of 25. Suffice it to say that these numbers have gotten a lot of companies to pay attention. What exactly converts a social media post into an “ad” or “promotion”? To learn more about the FTC’s endorsement guidelines, here are some helpful links: Code of Federal Regulations (16 CFR Part 255) FTC Endorsement Guide FAQs In a Federal Register notice, the FTC is seeking comment on a wide range of questions, including: The Commission vote to approve the Federal Register notice was 5-0. They started easy by mailing warning letters to major influencers and their brands. The Consumer Review Fairness Act protects consumers’ ability to share their honest opinions about a business’s products, services, or conduct in any forum – and that includes social media. Comments must be received within 60 days of publication and will be posted on regulations.gov. The Federal Trade Commission (FTC) recently announced it is seeking public comment on whether to make changes to its Endorsement Guides as part of its systematic review of all current FTC rules and guides.. June 22, 2020 Federal Trade Commission Office of the Secretary 600 Pennsylvania Avenue NW Suite CC-5610 (Annex B) Washington, DC 20580 Re: Endorsement Guides, P204500 Consumer Reports1 writes to respond to the Federal Trade Commission’s (“FTC” or “Commission”) request for comment2 on its Guides Concerning the Use of Endorsements and The FTC warns that these branded content tools do not meet the disclosure requirement. In that sense, the problem, it seems, is quickly solving itself. In the recent years, the FTC has begun to crack down on companies' and influencers' failure to adhere to the disclosure guidelines for paid posts. Marketers and publishers … You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357). yet. Please, read this page keeping its age in mind as SEO changes rapidly and while the past is useful to remember and reference, it often doesn't provide the best strategies to apply today. Please, read this page keeping its age in mind as SEO changes rapidly and while the past is useful to remember and reference, it often doesn't provide the best strategies to apply today. FTC Extends Comment Deadline For Endorsement Guidelines - 03/30/2020 June 22 is the deadline for comments about questions like whether children can understand social media disclosures. What does the FTC mean by a “material connection”? If you would like to find out more information about the FTC Endorsement Guidelines, we at Pissed Consumer suggest checking out FTC’s answers to the most frequently asked questions about the guidelines. This question is quite complicated. . Since 2017, the FTC has been busy cracking down on influencers – and the companies that use them – if they break advertising laws. 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