If you are using social media as a marketing tool, you are familiar with influencer advertising. What you may not know is that the FTC has established regulations that require certain disclosures to inform consumers of the sponsorship of the content in these ads. 16 CFR 255. The advertising industry has also created self-administering regs (ERSP) administered by the BBB to monitor influencer advertising.
Recently, this body considered influencer ads by Alo Yoga for its clothing lines and yoga studios. The ERSP identified 60 Instagram accounts where there was a commercial connection, ie. payment or free products, for their endorsements.
Notably Alo followed standard practices of citing the FTC guidelines in its contracts and provided literature to these influencers on how to properly identify the commercial connection. While the ERSP commended these efforts, it still found them lacking. The ERSP notes that more than half of the accounts failed to include the required hashtags and indicia of a commercial connection. Alo needed to train and monitor its influencers to ensure ongoing compliance with FTC regulations.
This area of law continues to evolve. The FTC website provides useful guidance athttps://lnkd.in/eu6SvVk
