On Wednesday, February 12, Rohit Chopra, a Commissioner of the Federal Trade Commission issued a statement “Regarding the Endorsement Guides Review.”
- Advertisers and social media platforms are seeking big returns from influencer marketing, which can allow paid advertising to seem more authentic.
- When companies launder advertising by paying an influencer to pretend that their endorsement or review is untainted by a financial relationship, this is illegal payola.
- Misinformation is plaguing the digital economy, and recent no-money, no-fault FTC settlements with well-known retailers and brands to address fake reviews and undisclosed influencer endorsements may be doing little to deter deception.
- The FTC will need to determine whether to create new requirements for social media platforms and advertisers and whether to activate civil penalty liability
Find Your Influence has issued the following statement:
“Find Your Influence (FYI) fully supports the Federal Trade Commission in their charge to safeguard the digital economy from misinformation. Over the course of the seven years, FYI has been helping brands and agencies work with influencers to create and authentically disclose sponsored content. FYI remains committed to helping brands and influencers create transparency, in alignment with the FTC’s disclosure guidelines. FYI works with influencers within its platform to provide tools and guidelines on proper and effective disclosures. Should the opportunity present itself, FYI welcomes the opportunity to work directly with the Federal Trade Commission, and social media platforms, as they chart the path forward to best protect consumers.”
–Cristine Vieira, President and co-founder, Find Your Influence