FTC Issues New Guidance for Influencer Disclosures

On November 5, 2019, the U.S. Federal Trade Commission (“FTC”) released an updated guide and video for online influencers and streamers about complying with mandatory sponsorship disclosures. Some of the important points discussed are as follows:​​

• Whenever influencers and streamers endorse a product, they are required to tell their audience if they have a relationship with the brand. A relationship with a brand can exist if the brand pays you, gives you free stuff, allows you to review a free product in an unbiased manner, or offers a discount. A relationship exists if there is a “material connection” with a brand. Along with a financial relationship, a “material connection” to a brand includes personal, familial, or employment relationships.
• Influencers must tell people about their brand relationship alongside their endorsement. Simply listing the brand in your profile, bio, or hashtags is not enough. To sufficiently comply with FTC guidelines, the relationship must be placed early in a message or placed prominently on a posted picture. When streaming, the disclosure must be clear and repeated often enough that the audience will hear/see it. Seemingly small actions such as tagging, liking, or pinning promoted brands are still ways of showing your endorsement; however, if you have no brand relationship and tell people about a product you bought and like, no disclosure is necessary to state that you don’t have a brand relationship.
• A post can be labeled as an ad, advertisement, or sponsored, with, or without, a hashtag. If you’ve only received a free product, thanking the brand or labeling yourself a partner or ambassador of the brand is enough as long as the disclosure is easily seen. If you mention a product that wasn’t required by your endorsement, disclose its connection to the brand – never assume that your followers know your brand relationships, or a product’s relationship to a brand.  

In conclusion, remember:

1. Make sure your disclosure is hard to miss.
2. It is the influencer’s responsibility to comply with FTC disclosure guidelines.