In an era where Influencer Marketing has become a ubiquitous aspect of Brand promotion, businesses and Influencers alike must stay informed about the latest regulatory guidelines. The Federal Trade Commission (FTC) is the watchdog ensuring that deceptive ads are kept at bay, and its Endorsement Guides provide a comprehensive understanding of how endorsers and advertisers can remain compliant with the law.

Understanding Material Connection and Its Importance

Any relationship between an Influencer and a Brand that could affect the credibility of an endorsement is considered a "material connection." This could be financial compensation, family ties, employment relationships, or even free or discounted products or services from the Brand.

This connection is critical because when Influencers disclose these relationships, it maintains the integrity of their recommendations, allowing followers to assess the value of endorsements. As Influencers, it's their duty to understand and comply with the Endorsement Guides, as well as laws against deceptive ads.

When and How to Disclose

Influencers are required to disclose any employment, financial, personal, or family relationships with a Brand. This isn't just limited to monetary transactions - if a Brand offers anything of value in exchange for a product mention, it must be disclosed. Even if the Brand relationship is not explicitly mentioned, disclosures should still be made, considering that actions like tagging, liking, or pinning are seen as endorsements.

Furthermore, if an Influencer posts from abroad, but it's foreseeable that the post will impact U.S. consumers, U.S. law applies. It's also important to note that foreign laws might apply in these cases.

However, if there's no Brand relationship and an Influencer is simply sharing a personal purchase they enjoyed, there's no need to declare the absence of a Brand relationship.

Best Practices for Disclosures

• You should make sure that disclosures are easily understood and visible to the consumer.
• Avoid placing disclosures on your profile page, about me, at the end of a post or video, or anywhere where the consumer would need to click somewhere else to learn about the partnership.
• Superimpose the disclosure on the image for both Instagram stories and Snapchat. On videos, make sure it's included in the description and video. For live streams, continually repeat the disclosure so new viewers will receive the same message.
• Use terms like "ad," "advertisement," or "sponsored" to describe your post. Using terms like "X Brand partner" is also good enough. Avoid confusing terms or slang that would make it hard for consumers to understand.
• You're not allowed to make false claims or review products they haven't actually tried out.

Conclusion

When it comes to Influencer Marketing, transparency is key. Our goal as Influencers should be to provide an honest and accurate portrayal of our partnerships with Brands. It's also important to stay up-to-date with the latest FTC regulations so we can remain compliant and keep our followers informed. Following best practices when it comes to disclosures helps maintain integrity in the world of Social Media Influencer Marketing and ensures that our followers remain loyal and informed.

_{The information provided on this blog does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only.}