The FTC is cracking down on the use of influencers on Instagram to promote unproven health claims. The below is an excerpt from a recently published Adweek article on the latest action taken by the FTC.
“On Friday, the Federal Trade Commission announced a complaint against—and settlement with—Teami, a marketer of teas and skincare products that the regulator says spread misleading messages across social media, fueled by popular celebrities and influencers.
This action marks the first time the FTC has brought legal action against an advertiser using Instagram to promote unsubstantiated health claims, the agency said in a press call Friday morning.
“Influencers should be on notice: If you have a brand affiliation, you must clearly and conspicuously disclose material connections to the brand,” FTC Commissioner Noah Phillips tweeted following the announcement.
Read the full article here.
Whether you’re working on sponsored content or promoting affiliate links, following FTC guidelines is crucial for any influencer’s business. The FTC believes that the consumer deserves the right to know any time a person is paid by a company, given free products, or something of value is exchanged for promotion, when evaluating their recommendation.
According to Sprout Social, 74% of shoppers make buying decisions based on social media content. This amount of influence is powerful and the FTC wants to ensure paid promotions are fully disclosed, honest, and not misleading. It should be very clear in a post that you were paid or will be paid for an endorsement.
Image via ShopStyle Collective influencer @blondeandbubbly