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Influencers, disclosures and your brand

On Behalf of | Oct 8, 2024 | BUSINESS & COMMERCIAL LAW - Business & Commercial Law

These days, every brand seems to be partnering with online influencers as a way to reach their target audience and boost engagement. However, the “Wild West” days of online influencing have passed.

The Federal Trade Commission (FTC) has handed down rules that require transparency in sponsored content so that consumers are protected. If you’re about to collaborate with an influencer, it’s essential to understand and comply with these disclosure guidelines.

Why are disclosure rules important? What are they?

The main idea is that consumers have a right to know when an influencer is being compensated for their endorsements. When influencers fail to disclose material connections with their sponsors (whether they receive money, free products or some other benefit), that can be misleading to the average consumer.

To that end, the FTC requires clear and conspicuous disclosers of your connection. In other words, consumers should be able to tell that content is sponsored, without having to dig through a ton of fine print or multiple posts. The disclosures are also expected to be placed at the beginning of a post or in a prominent spot so that it can be spotted right away.

While the FTC rules apply to all social media platforms, compliance can differ according to the platform. For example, YouTube may require verbal disclosures, while Instagram may require an influencer to use their “Paid Partnership” feature.

Ultimately, it’s your responsibility to ensure that your influencers are compliant with the FTC’s disclosure rules. You cannot assume they will do it correctly. That requires careful construction of your influencer contracts and – when necessary – legal action to enforce those contracts.

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