The FTC has recently revised its endorsement guides for influencer marketing and online reviews, marking the first update since 2009. The objective of the guidance is to prevent deceptive practices in consumer reviews and paid endorsements that appear as genuine feedback.
The FTC continues to emphasize the disclosure of “material connections” between endorsers and advertisers to consumers. Key changes in the updated guidance include:
- An expanded definition of endorsement
- Recommendations for disclosure placement
- Guidelines for how advertisers handle consumer reviews.
One significant update is that FTC considers social media “tags” endorsements.
The FTC emphasizes that disclosures in interactive electronic mediums, such as social media, should be unavoidable, contrary to disclosures that only appear when consumers click on a link labeled “more.”
Companies are also advised to refrain from distorting consumer reviews by suppressing or editing them.
The concept of “material connections” between advertisers and influencers extends beyond monetary payment and includes family relationships, early access to products, and opportunities to win prizes or appear in television ads.
The FTC expresses concern regarding endorsements in ads targeting children and acknowledges that disclosures may not effectively work for younger children. The agency is exploring potential actions for ads in digital media aimed at children.
H/T MediaPost
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