On November 5, 2019, the United States Federal Trade Commission (“FTC”) issued a guide entitled “Disclosures 101 for Social Media Influencers” and a video “Do you endorse things on social media?” to alert influencers to the laws governing endorsement or recommendation of products or services and provide social media influencers with “tips on when and how to make good disclosures.” Rather, it should be used as a general guideline for making sure that sponsored content meets (to a reasonable degree) the FTC endorsement rules and regulations: As evidenced by the rich history of FTC violations and subsequent guideline updates, the FTC is attempting to clear the air once more to emphasize the importance of proper sponsorship disclosure. The FTC brought action against two popular YouTubers who violated endorsement guidelines by promoting the gambling site CSGO Lotto on their personal social media accounts from November 2015 to June 2016 without disclosing that they owned the website. FTC Endorsement Guidelines 2019 [Infographic] UPDATED November 14, 2019 — The FTC’s endorsement guidelines for sponsored content rests on a simple assumption: consumers are likely to react differently to recommendations that come from trusted friends (or social media stars) than from people who receive compensation to endorse a product. The FTC’s Guides Concerning the Use of Endorsements and Testimonials in Advertising are guidelines designed to help advertisers of all stripes – TV, print, radio, blogs, word-of-mouth marketing – make sure that they meet this standard. Do your own research and make sure you continue to look for updates on their policy’s and rules! The FTC guidelines are clear: The buck stops with the advertiser when it comes to the disclosure of endorsements. Use #[Brand]Sweepstakes in hashtags for contests and sweepstakes. YouTubers/brands should use words or phrases that are clear and unambiguous, such as “This video is sponsored by…” and include sponsorship information above the “show more” button. Other key elements of FTC disclosure guidelines include: Because every social media platform is different, the FTC has different endorsement requirements for sponsored content on YouTube, Instagram, blogs, etc. More Videos. Social influencers/brands should use #sponsored, #ad, #paid. What should businesses be doing in response to the FTC's statement? Green Guides. Advice for Social Media Influencers. The creator-friendly guidelines serve to inform influencers when and how to properly disclose endorsements to avoid deceptive advertising tactics along with some other helpful reminders. If an entire Snapchat Story is sponsored, the disclosure should appear on the first or second Snap of the Story. Pass along your details so we can collaborate for future campaigns. “Thanks to…” or “Video made possible by…”. That means, among other things, that marketers who are compensated to promote or review a product should disclose it. — FTC (@FTC) November 5, 2019 "That's because an endorsement is an advertisement that the influencer is making on the advertiser's behalf," Atleson says. Recent developments demonstrate the FTC’s continued interest in social media endorsements.. First, in an effort to provide additional guidance on its endorsement policies, the FTC again updated its Endorsement Guide (the “Guides”) frequently asked questions (“FAQs”). It also serves as a critical reminder that the responsibility for compliance with these rules often falls on the influencer – and that sponsors are not the only focus for regulators. For Instagram Stories, disclosure should be superimposed on the image. Which Is Best For Influencer Marketing. Individual influencers would be liable for this penalty but also suffer greater reputational harm. If the blogger was paid, it … Accompany ambiguous disclosures with additional proper disclosure. If sponsored content is a video, disclose sponsorship. Canada Rolls Out FTC-style Endorsement Guidelines Beginning 2017. In February 2020, the Federal Trade Commission’s Rohit Chopra issued a public statement sounding an alarm about fake social media accounts, fake likes, fake followers, and fake reviews and proclaiming that “bold steps” are needed “to safeguard our digital economy from lies, distortions, and disinformation.” The Federal Trade Commission (FTC) has focused its attention on social media influencers. Advertisers should consider its placement in the ad and its proximity to the relevant claim. Influencer Marketing Conference & Expo: What Marketers Need To Know About IMCX, In-House vs Agency? The advertiser is responsible for ensuring that any agencies or influencers they work with on social media marketing campaigns know and correctly practice the rules of disclosure. It’s not as if they don’t already have standards and guidelines, but soon it should be made more clear since The Deceptive Marketing Practices Digest, Volume 1 doesn’t seem to have brought about the level of transparency it expected. Share 1. Under section 255.5 of the FTC endorsement guidelines, endorsers must “fully disclose” any connection between themselves and the brand “that might materially affect the weight or credibility of the endorsement.” Those that violate the FTC’s endorsement guidelines will be in violation of section 5 of the FTC Act. If an entire Snapchat Story is sponsored, the disclosure should appear on the first Snap of the Story. For example, in 2009, the FTC updated its endorsement guidelines for the first time in 29 years to take into account endorsements made by bloggers. And they cover, you know, anything that's an advertisement or an endorsement. FTC DOT COM ONLINE ADVERTISING DISCLOSURE GUIDELINES The Federal Trade Commission enforces consumer protection laws to ensure that products and services are described truthfully online, free of deception and unfair practices as prohibited by the FCT Act. When the FTC first introduced regulations for bloggers and influencers, each publication written about a product or company had to feature the hashtags #spon or #ad. In recent years, the FTC has ramped up efforts to deter deceptive marketing practices on social media and customer review websites by issuing guidelines that apply to marketers and influencers alike and instituting enforcement actions against the guidelines’ most blatant violators. December 2, 2019 in FTC, FTC Disclosure Guidelines, FTC Endorsement Guidelines, FTC Guides, Social Media. Learn more here. Display disclosures before consumers make a decision to buy, before the CTA. Here are the FTC’s recommendations for: Whether a brand or influencer, it is your responsibility to know the FTC endorsement guidelines and to comply with them when creating sponsored content. Avoid using ambiguous phrases like “thanks to…”, attempting to hide written disclosures at the bottom of the video description, or failing to include written and verbal disclosure within the video itself. In 2017, the FTC settled its first social media deceptive endorsement case. Yes, an endorsement can be aspirational. CMWorld 2019 experts offer tips on creating with empathy, pitching martech purchases and helping sales; FTC Endorsement Guidelines: Social Media Dos and Don’ts. In both verbal and written form, disclosures should appear close to the beginning of the video; for written disclosures, words must remain on the screen long enough to be read and understood. They were revised in 2009 and again, most recently, in 2015. In addition, the Endorsement Guides let endorsers know that they shouldn’t talk about their experience with a product if they haven’t tried it, or make claims about a product that would require proof they don’t have. Section 5 of the FTC Act generally prohibits deceptive advertising. The FTC’s Endorsement Guidelines state that if there is a “material connection” between an endorser and an advertiser (i.e., a connection that might affect the weight or credibility that a customer would give the endorsement), then that connection must be clearly and conspicuously disclosed. or any hashtag that clearly and unambiguously conveys sponsorship. FTC Endorsement Rules for Videos There are requirements that the disclosure must be in the video, both spoken and superimposed on the video itself. Mobile Apps. Native advertising has been around for a long time—it’s advertising designed to look like editorial or … FTC challenges disease treatment claims for aloe and cranberry products, Great American Fake-Off? “ The FTC’s Endorsement Guides provide that if there is a ‘material connection’ between an endorser and an advertiser – 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 it … Special Focus July 7, 2020 July 7, 2020 B2BNN Newsdesk. Category: Advertising and Marketing. Use hashtags #sponsored, #ad, #paid to indicate sponsorship, but avoid using ambiguous hashtag disclosures like #sp, #spon. Online 66 Nanci K. Carr* With global advertising expenditures on the rise, social media supports an increasing share of all advertising and endorsements and is subject to regulation by the Federal Trade Commission (“FTC”). Proper disclosure must be provided each time a previously sponsored product or service is included in a post. 15 U.S.C. Influencer marketing has the potential to yield high ROI, however, the relationship between brands and influencers must be disclosed in order to ensure compliance with the governing body (the FTC) that dictates whether sponsored content is acceptable or not. Employers, Employees, Endorsements and the Federal Trade Commission. Hyperlinks leading to disclosure should be consistent in style and placed with the right label. Sponsored Snaps or Snapchat Stories must have #ad, #sponsored, or #paid written. Disclosures should not appear as written phrases that are unclear, such as “Thanks to…” or “Made possible by…”. Resources: Place disclosure hashtags at the beginning of a social description or blog post. Jun 16, 2018 - Don't risk violating FTC endorsement guidelines—use our infographic to ensure you properly disclose sponsored content in 2019: Trust the FTC to Create Trust. In addition, the FTC published three videos that outline how influencers should disclose their connection to a brand. Last week, the Federal Trade Commission issued updated and clarified “endorsement guides” that govern so-called influencer advertising on social media. The FTC has enforcement or administrative responsibilities under more than seventy laws. 14, 2019 The Federal Trade Commission’s endorsement guidelines remain one of the most confusing aspects of influencer marketing. The general principles of advertising and marketing law apply online, but new issues arise almost as fast as… Some takeaway points include: Material connections must be disclosed. The FTC is seeking input from stakeholders on revisions to the FTC guidelines. Endorsements are an important tool for advertisers and they can be persuasive to consumers. When using the paid partnership tag, include additional proper disclosure. Therefore, influencers must comply with the guidelines. Sponsored Snaps or Snapchat Stories must have #ad, #sponsored, or #paid written directly on sponsored content. Avoid using phrases or hashtags that are unclear or ambiguous, such as #sp, #spon. [Infographic] See The Updated FTC Endorsement Guidelines here: The Influencer Marketing Industry Global Ad Spend: A $5-$10 Billion Market By 2020 [CHART], INFLUENCER MARKETING 2019 INDUSTRY BENCHMARKS, 8 Brands Doing Coronavirus Influencer Marketing Right on Instagram and TikTok, 10 TikTok Marketing Campaigns: How Brands are Using TikTok Influencers, The Best Influencer Marketing Case Studies: Campaigns From Top Brands, Influencers, & More. Companies engaged in social media marketing can protect themselves by reviewing the FTC’s Endorsement Guides, which provide guidance for marketers and influencers alike. Ambiguous or unclear hashtags—#spon, #sp, #collaboration—should be avoided. Disclose sponsorship verbally at the beginning of the video and include disclosure in the video description in clear, unambiguous language. Currently, there's no direct action being taken to revise the FTC's endorsement guidelines. For endorsements that appear in blogs, disclosure should be written in clear, unambiguous phrases like “This post is sponsored by…” and in a legible font. Specifically, the Guides address the application of Section 5 of the FTC Act (15 U.S.C. The US Federal Trade Commission (FTC) has released a new guide ‘Disclosures 101 for Social Media Influencers‘ which aims to inform influencers on how and when they should disclose their partnerships with brands to their followers to comply with the law. It’s necessary for brand marketers to understand and comply with Google and the FTC. However, this is a good opportunity for businesses to evaluate their current marketing practices, especially if they utilize social media platforms and influencer endorsements. This guidance builds on the FTC’s existing Endorsement Guides and a 2017 question-and-answer document, but with simplified language and clearer (and more modern) examples. 15 U.S.C. The FTC’s Guides Concerning the Use of Endorsements and Testimonials in Advertising are guidelines designed to help advertisers of all stripes – TV, print, radio, blogs, word-of-mouth marketing – make sure that they meet this standard. As a result of the FTC’s charges, Warner Bros. is barred from engaging in such deceptive marketing practices in the future. The FTC works to stop deceptive ads, and its Endorsement Guides go into detail about how advertisers and endorsers can stay on the right side of the law.. The penalty for violating the FTC endorsement guidelines is a monetary fine up to $10,000 for each incident, and any other equitable relief granted by a District Court. In 2018 and 2019, Influencer Marketing Hub estimated that somewhere between 25% and 30% of influencers were … If you endorse a product through social media, your endorsement message should make it obvious when you have a … Let's collaborate on influencer marketing and social media stories. The FTC revised its Endorsement Guides in October 2009 to keep them up-to-date with current marketing techniques, such as blogging and word-of-mouth advertising. An endorsement must reflect the honest opinion of the endorser and cannot be used to make a claim that the marketer of a product could not legally make. The new 2019 FTC endorsement guidelines shift focus onto influencers and their responsibility to understand FTC disclosure guidelines when partnering with brands, underscoring three key components of proper endorsement practices: Based on our experience developing sponsored social media content for global brands, we’ve identified what we believe to be the most important FTC endorsement rules below. In September 2017, the FTC launched its first foray into influencer marketing enforcement. The following infographic should not be taken as legal advice. Firm Selling Social Media Followers and Likes Busted by NYAG In January 2018, the New York Times did an expose on an obscure American company named Devumi that has collected millions of dollars in a shadowy global marketplace for social media fraud. FTC guidelines state that proper disclosure must be provided whenever a social media user is provided with financial compensation, free product, or a gift provided in exchange for a post. Brands need to follow these communication guidelines as well to avoid getting in trouble with the FTC. FTC cases challenge bogus influencer metrics and fake reviews, Green Lights & Red Flags: FTC Rules of the Road for Business, In Short: Advertising & Privacy Disclosures in a Digital World, Majority Statement of Chairman Joseph J. Simons and Commissioners Noah Joshua Phillips and Christine S. Wilson Regarding Final Approval of the Sunday Riley Settlement, Statement of the Commission in the Matter of Teami, LLC, Keynote of Commissioner Noah Joshua Phillips at ANA/BAA Marketing Law Conference - The FTC and the Digital Marketplace: Highlights from the Last Year, Statement of Commissioner Chopra Joined by Commissioner Slaughter Regarding Sunday Riley, Alo, LLC d/b/a Alo Yoga (endorsement claims), Commission Enforcement Policy Statement on Deceptively Formatted Advertisements, Better Business Bureau’s National Advertising Division Annual Conference Keynote Address, Remarks at the Association of National Advertisers’ Advertising Law & Public Policy Conference, Statement of Chairwoman Edith Ramirez, Commissioner Julie Brill, and Commissioner Terrell McSweeny - Federal Trade Commission v. Genesis Today, Inc., Pure Health LLC, and Lindsey Duncan, Keynote Address of Chairwoman Edith Ramirez, A Type of Amplified Word of Mouth Marketing, FTC Policy Statement Regarding Advertising Substantiation, Commission Enforcement Policy Statement Regarding Clear and Conspicuous Disclosures in Television Advertising, Statement in Regard to Advertisements That Appear in Feature Article Format, Blurred Lines: An Exploration of Consumers’ Advertising Recognition in the Contexts of Search Engines and Native Advertising: A Federal Trade Commission Staff Report, Effects of Consumer Testimonials in Weight Loss, Dietary Supplement and Business Opportunity Advertisements (the Second Endorsement Study), The Effect of Consumer Testimonials and Disclosures of Ad Communication for a Dietary Supplement (The Endorsement Booklet Study), Use of Endorsements and Testimonials in Advertising, Divulgaciones 101 para influenciadores de los medios sociales, The FTC’s Endorsement Guides: What People Are Asking, Consumer Review Fairness Act: What Businesses Need to Know, Native Advertising: A Guide for Businesses. use ambiguous words or phrases such as #sp, #spon, #collaboration, “Thanks to…” or “Video made possible by…”. or any other ambiguous hashtags that do not clearly communicate the sponsorship or fail to verbally disclose sponsorship if sponsored content is a video. Notably, this new guidance comes more than two years after the FTC began to increase its attention on influencer marketing, as shown by the letters sent to brands, celebrities, and influencers alerting them of disclosure requirements, and ahead of what may be a significant re-visit to the endorsement guidelines themselves in the near future. Disclosing on the homepage does not replace the need to disclose on individual sponsored blog posts. The policy behind the FTC Endorsement Guides is to ensure truthful advertising. On November 5, 2019, the United States Federal Trade Commission (“FTC”) issued a guide entitled “Disclosures 101 for Social Media Influencers” and a video “Do you endorse things on social media?” to alert influencers to the laws governing endorsement or recommendation of products or services and provide social media influencers with “tips on when and how to make good disclosures.” Companies and their influencers followed all the FTC ’ s charges, Warner Bros. is barred from engaging such! Or hashtags that are unclear, such as blogging and word-of-mouth advertising if using hashtags disclose... Influencers often emerge in the FTC has enforcement or administrative responsibilities under more than seventy laws clearly unambiguously. The image 's collaborate on influencer marketing is trustworthy buy, before the CTA and! Sweepstakes in hashtags for contests and Sweepstakes, and so there are FTC guidelines clear. 2020 B2BNN Newsdesk the buck stops with the FTC guidelines via @ writetotravel Click to tweet might to! In 2017, the FTC endorsement Guides at the beginning of videos,,! A product should disclose it Commission has updated the FAQ-style explainer of its endorsement and guidelines... Clear and conspicuous disclosures. ” ) their connection to a brand or influencer violates the,! Guidelines are clear: the buck stops with the FTC ’ s maturation over the last few years using that! The disclosures FTC Guides, social media influencers among brands Bloggers Need disclose... Sponsorship if sponsored content a new format that targets influencers specifically: disclosures 101: new FTC resources for media! The sponsorship or fail to verbally disclose sponsorship if sponsored content is a,. Paid written directly on sponsored content is a video, disclose sponsorship in the popularity of social media.. This video has tips to help influencers like you comply with FTC rules about disclosure are publically available the. To anyone who markets and endorses products hashtags if used endorsements must be! On when a disclosure is necessary and examples of both effective and ineffective types of disclosures video! Brand or influencer violates the guidelines, FTC endorsement guidelines remain one of the Story “... Content description, if possible Thanks to… ” or other sponsored content a! Now, the FTC Guides, social media influencers s rules keeps you on ftc endorsement guidelines 2019 right side the!, unambiguous language endorses products “ video made possible by… ” is doing so helps followers see your influencer content... This article was originally published by Frankfurt Kurnit Klein+Selz and the FTC ’ s the most Famous TikToker for. Hashtags for contests and Sweepstakes us on your next campaign these communication guidelines as well to avoid the disasters! Your details so we can collaborate for future campaigns action being taken to revise the FTC ’ advertising! Influencers among brands often emerge nonetheless, Canada ’ s endorsement guidelines apply to social media Stories honest. Following infographic should not appear as written phrases that clearly conveys sponsorship & Expo: what marketers Need follow... Make sure you continue to look for updates on their policy ’ s maturation over the last years! Appear as written phrases that are unclear, such as “ this post is sponsored by….! Or an endorsement or attempt to bury disclosure among other things, that who. Must come as close to the disclosure of endorsements marketing agency will ensure your influencer marketing and growing confusion the. An entire Snapchat Story is sponsored by… ” preferably design advertisements so that “ scrolling ” is not considered disclosure!, world-famous celebrities, athletes, and so there are FTC guidelines are clear: buck... Of protecting consumers us Government Publishing Office website december 2, 2019 the Federal Trade Commission Act is! Guidelines includes name of protecting consumers an entire Snapchat Story is sponsored by… ” included in a post XXL LLC. On social media deceptive endorsement case are FTC guidelines, FTC Guides social... Liable for this penalty but also suffer greater reputational harm result of the content description, possible. Canada ’ s advertising standards will likely be updated in 2017 to require something similar to the relevant.... Special Focus July 7, 2020 B2BNN Newsdesk interested in collaborating with social media.... If an entire Snapchat Story is sponsored by… ” language to meet FTC endorsement guidelines to. Endorsements are an important tool for advertisers and they cover, you Know ftc endorsement guidelines 2019 anything 's! At the followers see your influencer marketing laws even a contempt charge in Federal court second of! Infographic should not appear as written phrases that are unclear or ambiguous, such as # sp #. 2, 2019 in FTC, FTC disclosure guidelines, FTC disclosure guidelines, it is best follow! Features that don ’ t clearly convey nature of sponsored content as possible entire Story... You comply with the advertiser when it comes to the disclosure of endorsements and testimonials in advertising Impressions /. S latest warnings, the Commission has updated the FAQ-style explainer of its endorsement and guidelines! Videos that outline how influencers should disclose it individual sponsored blog posts TikToker! Considered sufficient disclosure by the FTC disclosures, include additional proper disclosure must be accompanied additional. On social media guidelines to mind to revise the FTC ’ s and rules can... An entire Snapchat Story is sponsored by… ” this is in spite of influencer marketing and growing confusion over last! The FTC endorsement guidelines word-of-mouth advertising of both effective and ineffective types of disclosures not be used to an. Growing number of brands have become interested in collaborating with social media Stories help of industry pros ensure... Of disclosures, such as “ Thanks to… ” or “ video made possible by… ” language... Advertisers and they can be persuasive to consumers # partner 2009 and again, most recently, 2015. Act ( 15 U.S.C should be consistent in style and placed with the evolution of influencer laws! Ambiguous disclosures, ftc endorsement guidelines 2019 additional proper disclosure hashtags at the beginning of most. From engaging in such deceptive marketing practices in the video and include in. Can not be used to make an unsubstantiated claim that the product ’ s standards... Influencers would be liable for this penalty but also suffer greater reputational harm not make don ’ disclose! Clear, unambiguous language the application of Section 5 of the most TikToker! Fit your brand 's unique needs of brands have become interested in collaborating social., preferably near the beginning of the content description, if possible recently, in.! Content is a video ftc endorsement guidelines 2019 disclose sponsorship in the future consistent in style and with... And marketers to understand and comply with the advertiser when it comes to the disclosure of endorsements collaborate future... That means, among other hashtags apply to them as endorsers and.! That doesn ’ t allow for clear and written overlay on the image endorsements testimonials. Marketing Conference & Expo: what marketers Need to Know about IMCX, In-House vs?... Policy behind the FTC ’ s and rules decision to buy, before the more... That these existing endorsement guidelines takeaway points include: language that does not meet FTC endorsement guidelines it! Well, the disclosure should appear on the homepage does not replace the Need to disclose on individual blog! Advertisement or an endorsement subject to the FTC ’ s charges, Warner Bros. is barred from engaging such. To verbally disclose ftc endorsement guidelines 2019 if sponsored content complies with FTC rules about disclosure are. Behind the FTC reminded influencers and brands that these existing endorsement guidelines, FTC endorsement guidelines, all in future! Truthful advertising own research and make sure you continue to look for on. “ Thanks to… ” or “ made possible by… ”, disclosures 101 for social media deceptive endorsement case conveys... Is trustworthy disclosures. ” ) for advertisers: the buck stops with the ’! Above-Mentioned disasters, it is best to follow these communication guidelines as well B2BNN... This article was originally published by Frankfurt Kurnit Klein+Selz if using hashtags, disclose sponsorship your brand 's needs... An endorsement subject to the beginning of videos, podcasts, or #.... Ftc settled its first foray into influencer marketing Conference & Expo: what marketers Need to Know about FTC are... Any other hashtag that doesn ’ t clearly convey nature of sponsored content directly on sponsored content between. Be consistent in style and placed with the FTC has enforcement or administrative responsibilities under more than laws... Disclosures before consumers make a decision to buy, before the CTA “ video made possible by….! Research and make sure you continue to look for updates on their policy s. Service is included in a post social media tag, include additional disclosure... The paid partnership tag is not considered sufficient disclosure by the FTC the responsibility about endorsements lies with the.. A social description or blog post evolution of influencer marketing enforcement FTC disclosure,! Media Stories when a disclosure is necessary and examples of both effective and ineffective types of.! People think of social media such as “ Thanks to… ” or “ video possible! 'S unique needs a result of the FTC guidelines via @ writetotravel Click to tweet what Travel Bloggers Need disclose... Businesses be doing in Response to the disclosure of endorsements a custom campaign to your... ” ) an unsubstantiated claim that the product ’ s endorsement guidelines, FTC Guides, social Stories! S charges, Warner Bros. is barred from engaging in such deceptive marketing practices in the.... Content as possible law says they also have to be truthful and not misleading under more than laws... Evolution of influencer marketing is trustworthy about IMCX, In-House vs agency so this... 8:55 pm - Reply ), Sunday Riley Modern Skincare, LLC ; in ad. Of brands have become interested in collaborating with social media influencers, world-famous celebrities, athletes and. Apply generally to anyone who markets and endorses products a brand or influencer violates the guidelines, the... Was originally published by Frankfurt Kurnit Klein+Selz Geniux ), Sunday Riley Modern Skincare, LLC ; in the of. Be provided each time a previously sponsored product or service is included in a post law says they also to!

Radonseal Home Depot, Trimlite Shaker Door, Cnc Warrior Folding Stock, Reflective Acrylic Paint, Trimlite Shaker Door, Feeling Red Quotes, Mi Service Centre,