Trust and integrity matter! Learn how skipping FTC disclosures can hurt influencers and what it takes to stay compliant.

Understanding FTC Disclosure Guidelines for Influencers: A Case Study


In an age where social media influencers hold significant sway over consumer purchasing behaviors, transparency and honesty in marketing are not just ethical imperatives; they are legal requirements. Federal Trade Commission (FTC) guidelines mandate that influencers must disclose any material connections with brands they promote. But, they do not always comply. Even really successful influencers fail to comply with FTC guidelines.

The Case: Non-Disclosure by a Brand Assistant

Two TikTok influencers caught a lot of heat from their community when they started selling $98 holiday pajamas a few weeks ago. Samantha and Cecily Bauchmann are sisters-in-law who regularly post about their lives as stay-at-home moms. They have almost 3 million followers on TikTok. You might recognize Cecily as the mom who took her kids to Disney World during Hurricane Milton. 

While the Bauchmanns had many issues with their pajamas' launch, one misstep was particularly shocking. They used their assistant to review and promote the pajamas without disclosing that the influencers employed her. The assistant does indicate about ¾ through the video that she can been seen modeling the pajamas on the Bauchmanns’ website, but never says it is because she is employed by them. The assistant’s glowing review of the product started to fill TikTok’s For You Page because other consumers had different reactions to the pajamas and contrasted their experience with her review. 

FTC Guidelines: What You Need to Know

The FTC is clear about what constitutes adequate disclosure for influencer marketing. Their guidelines state that any financial, employment, personal, or familial relationship with a brand must be disclosed clearly and conspicuously in social media posts. The FTC requires these disclosures to ensure consumers are informed about potential biases or incentives influencing a review.

Adequate disclosures according to the guidelines must be clear and conspicuous. Simply stating you’re a model for the brand isn’t enough. Explicitly stating “Ad,” “Paid Partnership,” or “Sponsored” is usually what is required.

Influencers, regardless of their following size, need to adhere to the FTC’s guidelines to avoid both legal repercussions and tarnishing their credibility with followers. The backlash and potential fines for nondisclosure can be severe. More importantly, it upholds the principle of honesty in advertising, giving consumers the respect and transparency they deserve.

Steps to Ensure Compliance: A Practical Guide

  1. Research and Understand Rules: Influencers should familiarize themselves with FTC guidelines. The FTC provides an easily accessible PDF guide, only eight pages long, which details the necessary steps and examples for proper disclosure. https://www.ftc.gov/system/files/documents/plain-language/1001a-influencer-guide-508_1.pdf

  2. Consistent Disclosure Practices: Always disclose any relationship with the brand at the beginning of the post or video. Use clear terms like “ad,” “sponsored,” “partnership” upfront to make sure the message gets across before viewers scroll past or click away.

  3. Education and Training: Brands that work with influencers should provide training on FTC guidelines. This ensures influencers understand their legal responsibilities.

  4. Audit and Monitor: Brands and influencers should periodically review social media posts to ensure compliance. This can help catch and correct oversights before they become issues.

Conclusion: Upholding Trust and Integrity in Influencer Marketing

The Bauchmanns' scenario is a stark reminder that the seemingly simple act of disclosure is mandatory but still ignored. For influencers and brands alike, compliance isn’t just about avoiding penalties; it’s about respecting the consumer's intelligence and trust. In a digital age where everyone is an influencer, maintaining this trust is invaluable.

Disclaimer: This is not legal advice but an informative post.

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