Brand communicators beware: The Federal Trade Commission (FTC) has declared open season on social media influencers who fail to disclose that they are paid for endorsing a brand’s products and services. Not only that, disclosures must take a specific form; they also should be ubiquitous in some cases.
Late last year the FTC issued a long-awaited policy statement regarding native advertising and influencers, which was a follow-up to an earlier FAQ on the topic. Not even three months after it issued the later document, it “put industry on notice,” says Allison Fitzpatrick, partner at Davis & Gilbert in its marketing, promotions and PR practice groups, by slapping a penalty on high-end retailer Lord & Taylor ( PRN, March 21).