FTC Released a Guide Disclosures 101 for Social Media Influencers (November 2019)

FTC Released a Guide Disclosures 101 for Social Media Influencers (November 2019)

In November 2019, the Federal Trade Commission’s (FTC) released their Disclosures 101 for Social Media Influencers guidelines, which serves as a crucial guide for influencers navigating the legal landscape of endorsements. With social media driving significant consumer purchasing decisions, the FTC emphasizes transparency in influencer-brand relationships to protect consumers from deceptive advertising practices. Here’s a concise overview of what influencers need to know to stay compliant.

Transparency in Relationships. Influencers must disclose any material connection with a brand they endorse. A “material connection” includes financial compensation, free products, discounts, or any other benefit received in exchange for promoting a product or service. These disclosures ensure followers understand the relationship and can weigh endorsements accordingly. Importantly, influencers cannot rely on brands or agencies to make these disclosures on their behalf—the responsibility lies with the influencer.

When to Disclose. Disclosures are required any time an influencer shares content influenced by a brand relationship. This applies even if the influencer was not directly asked to post or if the endorsement appears unbiased. If the influencer’s audience includes U.S. consumers, these rules apply regardless of where the post originates.

How to Disclose. The FTC provides clear guidance on making disclosures visible and understandable. Disclosures should be:

• Hard to Miss. Include them within the endorsement itself, not buried in hashtags, a profile page, or a “see more” section. In videos, place disclosures in both the visual content and the audio for accessibility. For live streams, repeat disclosures periodically.

• Simple and Clear. Use straightforward language such as “ad,” “sponsored,” or “thanks to [Brand] for the free product.” Avoid vague abbreviations like “spon” or “collab.”

• Platform-Specific. Adapt disclosures to the platform’s format while ensuring visibility. For instance, superimpose text on Instagram Stories or use concise language for Twitter posts.

Authenticity and Accuracy. The FTC also emphasizes truthfulness in endorsements. Influencers should only endorse products they have personally used and genuinely liked. Exaggerating claims or promoting false benefits, especially those requiring scientific proof, is prohibited. Misleading followers damages both consumer trust and the influencer’s credibility.

The Role of Tools. While some platforms offer disclosure tools, influencers should not solely rely on them. These tools should supplement—not replace—personal efforts to ensure disclosures are clear and compliant.

Why Compliance Matters. Failing to follow FTC guidelines can lead to legal repercussions, including fines and damaged reputations. However, by prioritizing transparency and honesty, influencers can foster trust with their audience while building sustainable brand partnerships.

As social media continues to grow as a marketplace for ideas and products, the FTC’s guidance offers a roadmap for ethical and effective influencer marketing. By adhering to these principles, influencers can maintain their authenticity while ensuring their endorsements are both legal and impactful.

 

For more information, see here:  https://www.ftc.gov/business-guidance/advertising-marketing/endorsements-influencers-reviews

 

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