Its primary authority was granted under the Federal Trade Commission Act. Media Resources. The endorsement guidelines publicized by the FTC help bloggers, influencers, brands and agencies understand what is required of them when a company pays someone to promote / endorse their product. Special Focus July 7, 2020 July 7, 2020 B2BNN Newsdesk. 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.. Acceptable language to meet FTC endorsement guidelines include: Language that does not meet FTC endorsement guidelines includes. For example, a car brand would need to disclose that a short video on Instagram is an advertisement or paid endorsement when they pay a famous basketball player to drive in the brand’s car with his kids. Nonetheless, Canada’s advertising standards will likely be updated in 2017 to require something similar to the FTC’s Endorsement Guides. The Guides provide 45) to the use of endorsements and testimonials in advertising. The Guides are not regulations, and so there are no civil penalties associated with them. Instagram’s built-in paid partnership tag is not considered sufficient disclosure by the FTC. Do you recommend or endorse things on social media? November 4, 2019. In 2019, several e-cigarette companies ran afoul of the FTC when paid influencers pitched their vaping products on Facebook, Instagram, Twitter, and YouTube. — 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. The FTC guidelines are clear: The buck stops with the advertiser when it comes to the disclosure of endorsements. Some takeaway points include: Material connections must be disclosed. 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. Accompany ambiguous disclosures with additional proper disclosure. The Coming FTC Crackdown on Misleading Influencer Marketing . Currently, there's no direct action being taken to revise the FTC's endorsement guidelines. In 2017, the FTC settled its first social media deceptive endorsement case. In 2018 and 2019, Influencer Marketing Hub estimated that somewhere between 25% and 30% of influencers were … Additional verbal disclosure is also recommended. “ 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 … The FTC new endorsement guidelines apply to a broad range of electronic advertising Medical providers and medical companies can be forced to suspend their electronic advertising, pay fines and penalties, and lose money if their advertising is misleading or deceptive There has been a tremendous increase in the popularity of social media influencers among brands. The FTC suggests using the hashtag #ad at the beginning of your Tweet or post; This only touches on the FTC disclaimer policy. For lengthy sponsored livestreams, disclose periodically throughout the livestream . 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.” Verbally disclosures must come as close to the beginning of videos, podcasts, or other sponsored content as possible. Required disclosures must be clear and conspicuous. They were revised in 2009 and again, most recently, in 2015. 07.25.2019. A little more than six months later, the regulator closed its first investigation of blogger-brand endorsement deals by issuing a warning letter to Ann Taylor but deciding not to fine the brand. When using the paid promotion tool, include additional proper disclosure. When using the paid partnership tag, include additional proper disclosure. With the evolution of influencer marketing and growing confusion over the FTC guidelines, incongruities between brands and influencers often emerge. “Thanks to…” or “Video made possible by…”. In April 2017, the FTC sent 90 letters to influencers and marketers to educate them on these influencer marketing laws. Let's collaborate on influencer marketing and social media stories. Use #[Brand]Sweepstakes in hashtags for contests and sweepstakes. 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. Nick: Well, the FTC has actually published endorsement guidelines that apply generally to anyone who markets and endorses products. Written disclosures must also be visible, appear in a different color than the background color, occur at the top/beginning of sponsored social media content, and remain on the screen long enough to be read and understood (for written disclosures in videos). 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. The FTC has also stepped-up its own investigations into deceptive online endorsements. Additionally, content creators must disclose when they have a family relationship with a brand. 08 Apr 2019. What Travel Bloggers Need To Know About FTC Guidelines via @writetotravel Click To Tweet. Place disclosure hashtags at the beginning of a social description or blog post. #collab, or #ambassador. The FTC is seeking input from stakeholders on revisions to the FTC guidelines. 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. Share 2. What the FTC Endorsements Guidelines Do. However, this is a good opportunity for businesses to evaluate their current marketing practices, especially if they utilize social media platforms and influencer endorsements. YouTube’s built-in paid promotion tool is not considered sufficient disclosure by the FTC. 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. 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. 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.” To that end, the FTC wants to create more transparency in sponsored content by placing more onus on brands and influencers to openly divulge the relationship between companies and the influencers recommending their products or services. ... Apart from FTC endorsement guidelines for social platforms, there are FTC guidelines for communication as well. If the blogger was paid, it … Is that still an endorsement subject to the FTC’s Endorsement Guides? In November 2019, it also released a guide simplifying the information and giving clear examples. Endorsements are an important tool for advertisers and they can be persuasive to consumers. The FTC’s endorsement guides establish guidelines for advertisers. 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. To avoid the above-mentioned disasters, it is best to follow the FTC social media guidelines. In April 2017, the FTC reminded influencers and brands that these existing endorsement guidelines apply to them as endorsers and advertisers. Place the disclosure before the “more” button and at the beginning of the content description, if possible. If sponsored content is a video, disclose sponsorship. Influencers and brands should reference FTC influencer guidelines directly at FTC.gov for more information and can contact endorsements@ftc.gov to ask any questions about FTC disclosures.. Update: The FTC updated their FTC influencer guidelines about disclosures in November 2019. While the FTC endorsement guidelines have always aimed to convey transparency to digital consumers, influencers have either been unaware of best practices, found ways to conceal ads, or ignored the guidelines altogether. 14, 2019 The Federal Trade Commission’s endorsement guidelines remain one of the most confusing aspects of influencer marketing. Advertisers should consider its placement in the ad and its proximity to the relevant claim. Learn more here. If you endorse a product through social media, your endorsement message should make it obvious when you have a … In September 2017, the FTC launched its first foray into influencer marketing enforcement. Native advertising has been around for a long time—it’s advertising designed to look like editorial or … 15 U.S.C. 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. Federal Trade Commission for the guidance of the public in conducting its affairs in conformity with legal requirements. 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. Advertisers shouldn’t encourage endorsements using features that don’t allow for clear and conspicuous disclosures.”).. To ensure that “material connections” between brands and influencers are clearly and fully disclosed, the FTC has put forth guidelines […] 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. The FTC has responded with efforts to clarify its endorsement and disclosure guidelines, all in the name of protecting consumers. 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. The FTC guidelines are publically available in the FTC Endorsement Guides at the US Government Publishing Office website. Canada Rolls Out FTC-style Endorsement Guidelines Beginning 2017. The Federal Trade Commission (FTC) has focused its attention on social media influencers. Proper disclosure must be provided each time a previously sponsored product or service is included in a post. The guide includes pointers on when a disclosure is necessary and examples of both effective and ineffective types of disclosures. However, this is a good opportunity for businesses to evaluate their current marketing practices, especially if they utilize social media platforms and influencer endorsements. But the law says they also have to be truthful and not misleading. The following infographic should not be taken as legal advice. The FTC guidelines are clear: The buck stops with the advertiser when it comes to the disclosure of endorsements. Display disclosures before consumers make a decision to buy, before the CTA. The guide includes pointers on when a disclosure is necessary and examples of both effective and ineffective types of disclosures. The FTC guidelines are publically available in the FTC Endorsement Guides at the US Government Publishing Office website. FTC Endorsement Rules for Videos There are requirements that the disclosure must be in the video, both spoken and superimposed on the video itself. Disclosures should not appear as written phrases that are unclear, such as “Thanks to…” or “Made possible by…”. Hashtags. That is why the U.S. Federal Trade Commission (FTC) created Endorsement Guidelines that explain key influencer marketing guidelines and examples for companies to use. 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. Share 1. Advice for Social Media Influencers. Some takeaway points include: Material connections must be provided each time a previously sponsored product or service is in. 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