3. FEDERAL TRADE COMMISSION ACT
Section 5:
Unfair or Deceptive Acts or
Practices
Prevent unfair methods of
competition and unfair or
deceptive acts or practices in
or affecting commerce
UDAAP:
Unfair, Deceptive, or Abusive
Acts or Practices
Examples: Superlative
language, potentially vulnerable
consumers, or images aligning
with marketing
5. AWARENESS OF FTC GUIDELINES ON INFLUENCER MARKETING
AMONG US INFLUENCERS AND MARKETERS
2015 2016
1
1 1
2
2 2
Influencers Marketers who work with influencers
(% of respondents)
Aware/understand
Aware/somewhat familiar
Aware/not familiar
Not aware
67%
19%
5%
7%
8%
23%
30%
33%
60%
19%
7%
7%
11%
23%
26%
30%
Note: numbers may not add up to 100% due to exclusion of “prefer not to answer” and “not sure” responses
Source: Izea, “The 2017 State of the Creator Economy Study” conducted by Lightspeed GMI and Research Now in partnership with Halverson Group and The Right Brain
Consumer Consulting, Feb 13, 2017
eMarketer
6. 6
Federal Trade Commission staff recently sent out more than
90letters reminding influencers and marketers that
influencers should clearly and conspicuously
disclose their relationships to brands when promoting or
endorsing products through social media.
7. FTC ENFORCEMENT
FTC utilizes
funnels to
mine
complaints
Informal/Formal
communication:
• Subpoena
marketing
• Advertisers
may quash
File suit
Freeze assets
Require compliance
reporting: 10-20 years
8. ‘Advertisers need to
make a reasonable
effort to monitor what
publishers are saying
about their brands’
13. 4 P’s OF DISCLOSURE
Prominence
Presentation
Placement
Proximity
14.
15. Simply posting a picture of a product in social
media, such as on Pinterest, or a video of you
using it could convey that you like and
approve of the product. If it does, it’s an
endorsement and that needs to be disclosed.
“ “
- Federal Trade Commission
16.
17. 17
Putting #spon directly after the
link might confuse consumers and
make it less likely that they would
understand that it is a disclosure.
“Ad:” at the beginning of a tweet
or similar short-form message
should inform consumers that the
message is an advertisement.
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31. BEST PRACTICES
Ensure the
marketing message
is complete and
accurate
All text is large
enough to read
Wording and format
are understandable
All information is
located where the
consumer can be
expected to look
Conduct your own
focus group
Have substantiating
evidence to support
your stance
Avoid the use of
Asterisks (*)
Limited Time Offers-
must have end date