Influencer Marketing is an increasingly popular form of marketing where companies use individuals to talk about their brand (think an influential blogger, people hired to discuss a brand’s products or even a topic expert) to establish credibility and influence with their target customers. In late March many companies received a letter from the Federal Trade Commission inquiring about those companies’ use of disclosures in their influencer campaigns and to remind them that their campaigns should be compliant with the FTC’s Guidelines on Testimonials and Endorsements.
In late March many companies received a letter from the Federal Trade Commission inquiring about those companies’ use of disclosures in their influencer campaigns and to remind them that their campaigns should be compliant with the FTC’s Guidelines on Testimonials and Endorsements.
Those guidelines require clear and conspicuous disclosure that the influencers have a material connection to the companies or their brands. By sending these letters it is clear that the FTC is looking at and expecting industry compliance.
So, as a reminder, if you are implementing an influencer campaign ensure that you:
- obtain a written agreement from all your influencers, notifying them of their disclosure requirements;
- train your influencers and agents about what is needed for compliance;
- monitor for compliance; and
- enforce consequences for noncompliance.
To date, there have only been a handful of public enforcement cases involving influencers but keep in mind that this action by the FTC undoubtedly conveys that even when some influencers post their material connections those disclosures are not always clearly worded and/or are placed somewhere that is sufficiently clear and conspicuous.
Take away: Make sure you have implemented proper procedures and are comfortable with the clear and conspicuous nature of your influencers’ material disclosure messaging.
