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Responding to FTC Investigations of Online Influencers
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Dealing With the FTC as an Influencer
Being an influencer online is a pretty sweet gig. You get to make fun videos and photos, partner with awesome brands, and even make some money. But it also means you have some legal stuff to worry about. The Federal Trade Commission (FTC) oversees influencer marketing and will come after you if you break their rules.If the FTC comes knocking, don’t freak out! Just work with them, be upfront, and make any changes they ask. With the help of a lawyer who knows their stuff, you’ll get through it no problem.
The FTC Can Crack Down on False Ads
The FTC enforces laws about fake or misleading ads under Section 5 of the FTC Act. This gives them power over influencer marketing too. If an influencer’s post seems shady, leaves out important info, or straight up lies, the FTC can bring down the hammer.In 2017, the FTC filed its first complaint against individual influencers, Trevor “TmarTn” Martin and Thomas “Syndicate” Cassell. They got in trouble for not telling people they actually owned the online gambling site they hyped up. It showed the FTC will hold influencers personally accountable.
If The FTC Investigates You
If you get a letter or subpoena from the FTC about your influencer content, here’s what you should do:
- Respond ASAP and be helpful – it makes you look good.
- Hire a lawyer who knows the FTC – they’ll walk you through it.
- Save anything related to the inquiry – don’t delete stuff!
- Review your old social posts – find any issues.
- Give them all the info they ask for – hiding things can backfire.
You typically only have 30 days to respond, so move fast. They may give you more time if you ask nicely and show you’re working on it.
Avoid Shady Marketing
To stay on the FTC’s good side, influencers should:
- Disclose any free stuff or payments from brands.
- Make disclosures easy to see – don’t hide them!
- Disclose in every related post – don’t assume people saw it before.
- Give your real opinion – don’t exaggerate or leave out problems.
When in doubt, disclose! Being upfront builds trust with your followers.
Negotiating a Settlement
If the FTC thinks you broke the rules, they’ll probably want to settle it. This usually means:
- Agreeing to stop the shady stuff.
- Adding clear disclosures to old posts.
- Making a plan to comply in the future.
- Paying some money – often thousands of dollars.
Settling allows you to fix it without going to court. But the FTC might demand unreasonable things, so have your lawyer negotiate hard.
Avoiding More Problems Later
Once your case is over, stay out of trouble by:
- Following the FTC’s Endorsement Guides closely.
- Getting legal reviews of any iffy posts.
- Regularly checking your old social media.
- Keeping detailed records of your compliance efforts.
Stay current on FTC rules as they change. What’s cool today may not fly tomorrow.
Don’t Get Hit Personally
If your business is set up as an LLC, that normally protects your personal money from lawsuits. But the FTC could still target you as an individual. Consider insurance just in case.
Get a Good Lawyer
A lawyer who knows this stuff can guide you through an FTC investigation, help negotiate a good settlement, and keep you compliant in the future. Find someone who specializes in influencer law and gets both the marketing and legal side.With the right legal help, most influencers can resolve FTC issues without too much trouble. Don’t let it tank your influencer career!