FTC Endorsement Guidelines:  All Eyes on Influencer Economy

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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.

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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.