What are the FTC guidelines for when to disclose brand relationships?
When endorsing products or services, any influencer with a material connection to a brand must disclose that connection in simple and clear language, and in a clear and conspicuous manner—the disclosure must be hard to miss.
How does the FTC define endorsements?
(a) Endorsements must reflect the honest opinions, findings, beliefs, or experience of the endorser. Furthermore, an endorsement may not convey any express or implied representation that would be deceptive if made directly by the advertiser.
What does FTC guidelines say?
The FTC Act prohibits unfair or deceptive advertising in any medium. That is, advertising must tell the truth and not mislead consumers. A claim can be misleading if relevant information is left out or if the claim implies something that’s not true.
What do influencers need to have in order to let others know their content has been sponsored?
How to Disclose Sponsored Instagram Posts According to the FTC
- #1. Place Your Disclosure So It’s Hard to Miss.
- #2. Use Simple and Clear Language.
- #3. Use the Same Language Throughout.
- #4. Don’t Assume a Platform’s Disclosure Tool is Good Enough.
- #5. Share Honest Endorsements Only.
What is FTC compliant?
The FTC enforces federal consumer protection laws that prevent fraud, deception and unfair business practices. The FTC administers a wide variety of laws and regulations, including the Federal Trade Commission Act, Telemarketing Sale Rule, Identity Theft Act, Fair Credit Reporting Act, and Clayton Act. …
What are FTC disclosures?
What Is an FTC Affiliate Disclosure? An FTC affiliate disclosure is a prominent statement that disclaims your relationship to companies that pay you to sponsor or otherwise promote their offerings. Anyone engaged in affiliate marketing needs an FTC affiliate disclosure.
Do influencers have to disclose sponsorships?
When it comes to influencer marketing, the FTC requires that all influencers must disclose when content is sponsored or paid for, so the consumer knows the influencer was paid to create the content.
Do influencers need to tell audiences they are getting paid?
While it is well-established that the Federal Trade Commission (“FTC”) requires that influencers – ranging from big-name celebrities and Instagram-famous figures to small-scale micro and nano-influencers – “clearly and conspicuously” disclose when their posts are the result of a “material connection” with a company …
What is a disclosure?
Disclosure is the process of making facts or information known to the public. Proper disclosure by corporations is the act of making its customers, investors, and analysts aware of pertinent information.
Is it illegal not to disclose sponsorship?
In the USA the obligation to disclose sponsored content is on the creator. The FTC can bring a case against you not only if you failed to disclose your sponsored content at all, but also if you failed to declare it in the correct way. Brands are not exempt either.
Do influencers have to disclose ads?
Follow the Federal Trade Commission (FTC) Guidelines Influencers have to disclose any time they are endorsing a product because of a paid partnership or personal affiliation with the brand. That includes family relationships and free products, as well as paid sponsorships.