If you’re a company or brand that has ever considered partnering with influencers for a paid or in-trade collaboration, you’ve likely wondered about the guidelines surrounding these types of engagements. This week, we’re breaking down the rules and regulations the Federal Trade Commission (FTC) has put into place when it comes to online ads and collaborations.
Influencers must disclose a partnership anytime they have any financial, employment, personal or family relationship with a brand.
FACT! The FTC says, “Telling your followers about these kinds of relationships is important because it helps keep your recommendations honest and truthful, and it allows people to weigh the value of your endorsements.”
Influencers only have to disclose a partnership when payment is exchanged.
FICTION! The partnerships listed above (financial, employment, personal, family relationship) don’t always mean the money is exchanged between the parties involved. These partnerships can include free or discounted products. Yes, that includes meals, foodies!
It’s not necessary to include a hashtag with the disclosure, such as #ad or #sponsored.
FACT! While many influencers DO include these hashtags, the FTC says it’s not completely necessary if you already have a clear disclosure attached to your content or caption. They ask influencers to “use simple and clear language” in their disclosures and avoid mixing the disclosure with groups of hashtags or links.
Influencers can talk about their experience with a product they haven’t yet tried.
FICTION! Influencers must have tested or tried the product before sharing their experience or review. Similarly the FTC states, “If you’re paid to talk about a product and thought it was terrible, you can’t say it’s terrific.” Influencers also cannot state or generate claims about a product that the company does not have proof to verify.
When making an endorsement in a video (YouTube, IGTV, etc.), influencers must include their disclosure in both the caption of the video as well as in the video itself.
FACT! Additionally, the FTC asks that in video content like a Facebook or Instagram Live Stream, influencers repeat their disclosure throughout, assuming that some audience members may tune in after a disclosure was stated. Again, CLEAR and simple language is a must!
Expect the existing guidelines to be revised as influencer marketing continues to evolve. You can find more information on the FTC website. Interested in planning and executing your own influencer campaign? Chat with our team about the process of making it happen. Reach us here!
