New York (The Verge) — The FTC is cracking down on influencer marketing on YouTube, Instagram, and TikTok theverge.com/2020/2/12/2113….
The Federal Trade Commission voted 5-0 to approve a Federal Register notice that would seek public comment on whether Endorsement Guides for advertising need to be reviewed. A statement by Commissioner Rohit Chopra calls for tougher penalties for companies that disguise advertising on platforms like Instagram, YouTube, and TikTok as authentic reviews.
For years, the Federal Trade Commission has required influencers to disclose sponsored posts, but the guidelines seem to have had little effect. In one recent case mentioned in the letter, a Lord & Taylor campaign paid 50 social media influencers to post about a dress on Instagram, but didn’t require them to disclose that the posts were sponsored. The FTC charged Lord & Taylor with deceiving the public, settling the case by prohibiting the company from “misrepresenting that paid ads are from an independent source,” but didn’t levy a monetary fine. — Dami Lee/@verge