The Federal Trade Commission Updates Its Endorsement Guides
Federal Trade Commission
The Federal Trade Commission (FTC) has updated its Endorsement Guides for the first time since 2009. The Guides provide guidance to individuals and companies regarding endorsements, including product reviews, sponsored content, and other types of advertising partnerships. In addition, the FTC has released an updated FAQ document that covers specific examples, such as disclosures for TikTok videos, influencer trips, de-influencing, and gifting.
Here's a breakdown of some of the most notable updates or reinforcements:
TikTok Disclosures: Due to the small text description and multiple elements in TikTok content, creators must also include a disclosure overlaid in sponsored TikTok videos.
Sponsored Trips: When brands sponsor a trip for creators, creators should include disclosures for all of their content during the trip, except when sharing posts unrelated to that location.
De-influencing: When creators criticize or make negative comments about a competitor of a brand they have worked with, they should disclose that relationship as it can impact how their audience views their comments.
Gifting/Seeding Programs: When marketers send creators free, unsolicited gift products, they have to ask them to clearly and consciously disclose the gift in any content they share, including how it should be disclosed and request that they be tagged in the content.
Gifted Products: "#Gifted" alone isn't a sufficient disclosure when creators receive free products or services. Creators must also include the brand name, such as "Gifted by XYZ."
Disclosure Language: The language of a disclosure should match the language of a creator's post. For example, if a creator shares a sponsored video in Spanish, the disclosure should also be in Spanish.
With the acceleration of the creator economy and influencer marketing specifically, it's surprising how slow the FTC has been in updating its policies compared to other regulators and agencies across the world, like the Advertising Standards Authority, which has been quite aggressive in not only its policies but also taking action on creators and brands who violate them.
Considering the significant amount of money being spent on sponsored content, reviews, and the influential power of these endorsements, expect the FTC and others to continuously tweak and update their policies to adapt to the evolving landscape and protect consumers by making it clear when and where they are being advertised to.
For anyone who touches anything connected to creators (e.g., brands, agencies, influencer platforms, talent reps, creators themselves, etc.), it's important to stay updated with the rules and regulations across all relevant regions to avoid potential issues arising from improper disclosures or inappropriate practices.
