FTC (2019)Disclosures 101 for Social Media Influencers

Disclosures 101 for Social Media Influencers

Importance of Compliance

• Influencers must comply with the law when recommending or endorsing products.

• A key component is to disclose your relationship to the brand clearly.

• The FTC actively works against deceptive advertising practices.

• Influencers should familiarize themselves with the Endorsement Guides issued by the FTC.

Definition of Material Connection

• A "material connection" includes personal, family, employment, or financial relationships.

• Financial relationships involve compensation, free products, or discounted services.

• Transparency in these relationships allows followers to assess the integrity of endorsements.

• It is the influencer's responsibility to make accurate disclosures.

When to Disclose

• Disclose any financial, personal, or family relationships with brands.

• Financial relationships include more than just monetary compensation; any value received must be disclosed.

• If given free or discounted items, disclose when mentioning the brand, regardless of whether requested to do so.

• Do not assume followers are aware of your relationships with brands; be proactive in disclosing.

• Tags, likes, and other interactions count as endorsements that require disclosure.

• U.S. law applies to posts potentially affecting U.S. consumers, even if posted abroad.

• If discussing a product solely based on personal experience with no brand relationship, no disclosure is necessary.

How to Disclose

• Ensure disclosures are easily visible and understood by your audience.

• Place disclosures close to the endorsement message for visibility.

• Avoid placing disclosures on profile pages or at the end of content where they may be overlooked.

• In posts on visual platforms, such as Snapchat or Instagram Stories, overlay disclosures on images for better visibility.

• In videos, include the disclosure within the video content instead of merely in the description.

• For live streams, repeat disclosures periodically for viewers.

Best Practices for Clear Disclosure

• Use simple and direct language, e.g., "Thanks to Acme brand for the free product."

• Common terms like "advertisement," "ad," and "sponsored" are acceptable disclosures.

• For platforms with limited characters (like Twitter), using terms such as "AcmePartner" is encouraged.

• Including corresponding hashtags like #ad or #sponsored can enhance visibility but is optional.

• Avoid vague terms or abbreviations that may confuse followers.

• Disclosures should match the language used in endorsement content.

• Relying solely on platform-specific disclosure tools is not recommended; implement clear personal disclosures as well.

Additional Compliance Guidelines

• Influencers must not provide testimonials about products they haven't personally used.

• If compensated for a negative portrayal of a product, it cannot be falsely promoted as positive.

• Do not fabricate claims about products requiring proof from advertisers, such as health benefits.

Resources for Further Information

• The FTC’s publication "Endorsement Guides: What People Are Asking" offers extensive answers to endorsement-related questions.

• Visit FTC.gov/influencers for more insights and examples regarding influencer endorsements.

Disclosures 101 for Social Media Influencers

Importance of Compliance

Influencers must comply with legal requirements when recommending or endorsing products. This compliance is essential not only for maintaining trust with followers but also for avoiding potential legal repercussions. A key component of this compliance is to disclose your relationship to the brand clearly and transparently. The Federal Trade Commission (FTC) actively works against deceptive advertising practices and has established guidelines for endorsements to protect consumers. Influencers should familiarize themselves with the Endorsement Guides issued by the FTC, which outline specific rules and examples.

Definition of Material Connection

A "material connection" is a term used to define various types of relationships between influencers and brands that could impact the credibility of endorsements. This connection includes personal, family, employment, or financial relationships. Financial relationships, in particular, involve any form of compensation, whether monetary or in the form of free products or discounted services. By being transparent about these relationships, influencers enable their followers to assess the integrity of their endorsements and make informed decisions. It is ultimately the influencer's responsibility to ensure that disclosures are accurate and easy to understand.

When to Disclose

Influencers are required to disclose any financial, personal, or family relationships with brands when endorsing products. These financial relationships encompass not only direct monetary compensation but any value received in exchange for promoting a product. If influencers are provided with free or discounted items, they must disclose this information when discussing the brand, irrespective of whether disclosure was requested by the brand. Influencers should not make assumptions that their followers are aware of these relationships; instead, they should proactively disclose this information. Additionally, interactions like tags, likes, and comments can be considered endorsements that also necessitate disclosure. It is important to note that U.S. law applies to any posts that could potentially affect U.S. consumers, even if such posts are created and shared abroad. If a product is mentioned solely based on personal experience without any brand relationship, a disclosure is not required.

How to Disclose

To ensure transparency, disclosures must be easily visible and comprehensible to an audience. Influencers should position disclosures in close proximity to the endorsement message to enhance visibility. Avoid placing disclosures on profile pages or at the end of content where they might be overlooked. On visual platforms, such as Snapchat or Instagram Stories, adding text overlays on images for disclosures improves their visibility. In video content, disclosures should be integrated within the material itself rather than just being included in the description. For live streams, it’s advisable to repeat disclosures at regular intervals to ensure that viewers receive the information.

Best Practices for Clear Disclosure

Use simple, clear language for disclosures. For instance, a straightforward statement like, "Thanks to Acme brand for the free product" can effectively communicate the relationship. Common terms such as "advertisement," "ad," and "sponsored" are also acceptable as disclosures. On platforms with character limits, such as Twitter, it is encouraged to use terms like "AcmePartner" for clarity. Including popular hashtags such as #ad or #sponsored can enhance visibility, although they are not mandatory. It is crucial to avoid vague or ambiguous terms that might confuse followers. Moreover, disclosures should use the same language as the endorsement itself to maintain consistency. Relying solely on platform-specific disclosure tools is not advisable; influencers should take the initiative to implement personal, clear disclosures as well.

Additional Compliance Guidelines

Influencers are prohibited from providing testimonials about products they have not personally used or experienced. Additionally, if they receive compensation to provide a negative portrayal or review of a product, it cannot be falsely marketed as positive. Influencers must not fabricate claims regarding products, especially those that require substantiation from advertisers, such as health benefits or efficacy claims.

Resources for Further Information

The FTC’s publication titled "Endorsement Guides: What People Are Asking" offers a comprehensive overview and answers to a plethora of endorsement-related questions. Influencers can also visit FTC.gov/influencers for further insights, resources, and examples to navigate the complexities of influencer endorsements.