The FTC Just Issued a Stern Warning to Celebs Who Get Paid to 'Gram
All of those celebrities in your Insta feed pushing gummy hair vitamins and weight loss tea without disclosing paid endorsement deals just got a stern warning.
On Wednesday, the Federal Trade Commission announced it had sent out more than 90 letters reminding influencers and marketers that such deals must “clearly and conspicuously” be disclosed when promoting products through social media.
According to the FTC letter, “if there is a ‘material connection’ between an endorser and the marketer of a product – in other words, a connection that might affect the weight or credibility that consumers give the endorsement – that connection should be clearly and conspicuously disclosed, unless the connection is already clear from the context of the communication containing the endorsement.” That means #ad or similar clear language should be placed prominently in the caption above the “more” button, not buried deep in the hashtags after a lengthy post.
The letters come in response to petitions filed by the nonprofit Public Citizen, among others, to expose shady ads on social media that may be in violation of federal trade laws. Recipients’ names were not included in the FTC letter, but The Fashion Law has a few ideas.
Watch that side hustle, y’all.