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In the ever-evolving world of influencer marketing, where authenticity and trust are key, it's super important for influencers to act both ethically and legally. The Federal Trade Commission’s Endorsement Guides serve as a compass for influencers, ensuring transparency and honesty in their paid partnerships and collaborations. Let’s talk about a few key aspects of the FTC Endorsement Guidelines and explore how influencers can comply with them.
What is the FTC?
The FTC is a U.S. federal agency dedicated to protecting consumers from deceptive advertising practices. The FTC’s “Endorsement Guides”, while not enforceable as laws, provide essential guidelines for influencers to interpret, understand, and apply the law correctly. These guidelines emphasize truthful advertising and disclosure of “material connections” between influencers and brands.
Key FTC Terms for Influencers to Know:
“Endorsement”:
An endorsement is any advertising message that includes the opinions, beliefs, or experiences of someone (i.e., the influencer) other than the advertiser (i.e., the brand).
The new FTC guides clarify that even tagging a brand can be considered an “endorsement”.
“Unexpected Material Connection” (or UMC):
The FTC requires influencers to disclose “unexpected material connections” to their audience, which is any relationship that:
might materially affect the weight or credibility of an endorsement, and is not reasonably expected by consumers,
EXAMPLE: if you are being paid or receiving something of value from a brand that you don’t own, then that relationship is financial and would likely be a UMC relationship (per the FTC).
“Clear and Conspicuous”:
When you do have to disclose a UMC, you must ensure that the disclosure is “clear and conspicuous”, meaning it is easily understandable to your audience and difficult / unavoidable for consumers to miss when consuming your content.
FTC Compliance Tips for Influencers:
When to Disclose:
You must disclose all unexpected material relationships, including financial, family, or personal connections.
Disclose even if you’ve already disclosed that particular relationship before-- you never know who is seeing your content for the first time.
Disclose these relationships in all of your influencer activities, such as social media posts, blogs, videos, and stories.
How to Legally Disclose:
Disclose in a way that the audience is receiving the content, e.g. disclose in both audio and visual formats (stating the disclosure as well as including as text on the screen).
Use clear and unambiguous language, such as “thank you to Starbucks for sponsoring this video/post/story” rather than simply stating “thank you, Starbucks”
Avoid hidden disclosures, e.g. don’t use small hard-to-read text or hide the disclosure in the caption under the “more” button.
Repeat disclosures in multiple places and times for clarity.
How to Be “Truthful”:
Base your reviews on your actual trials of the product
Be honest and truthful in what you say, not just the script that brands give you.
Exercise extreme caution with health and weight-related claims— these must be supported by credible scientific evidence (ask the brand where the evidence is so you can cite it!)
FTC Enforcement and Consequences:
Violations of FTC laws can result in legal fees, monetary judgments, and orders to adhere to compliance. Just recently, the FTC issued warnings to influencers and brands for inadequate disclosures, emphasizing the need for clear, conspicuous, and unambiguous disclosures of material connections. We can learn from real cases, such as Teami's $15 million judgment, to understand the potential repercussions of non-compliance. I talk more about the Teami case, including an FTC violation by Cardi B, on my YouTube video.
Conclusion:
As the influencer marketing landscape continues to evolve, understanding and adhering to the FTC Endorsement Guidelines is crucial for long-term success. By prioritizing transparency, honesty, and legal compliance, influencers can build and maintain trust with their audiences while navigating the legal landscape responsibly. Remember, the key is to be clear, conspicuous, and truthful in all your endorsements. Stay informed, stay compliant, and thrive in the ever-growing creator economy!
Questions about the information in this article? Email hello@startupheartup.com