PRESENTED BY THE FUTURE OF COMMERCE
FTC Endorsement Guidelines:
All Eyes on Influencer Economy
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Influencer marketing is
a $21B+ industry
The FTC last updated ad guidelines in 2009, making social-media driven marketplaces the Wild, Wild West at times with regard to paid endorsements.
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The FTC notes that the best disclosures are prominent and simply worded. For example: “This is an ad for brand X.”
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Product + customer reviews are also targeted in the FTC updates.
Recognizing the importance of product reviews, the
FTC wants
to rein in activities that manipulate reviews.
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The agency noted the growing use of generative AI, which is likely to make it "easier for bad actors to write fake reviews."
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The FTC proposed a rule to ban fake reviews and illicit endorsement practices.
Consumers aren't going to trust a company that tinkers with reviews or fails to disclose paid endorsements.
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#FACTS:
Influencer marketing only works if it's trustworthy.
FTC endorsement guidelines: Read the full story
HERE.
The Future of Commerce