Blog
Responding to FTC Probes of Influencer Marketing
Contents
Responding to FTC Probes of Influencer Marketing
Influencer marketing has exploded in popularity over the past few years. Brands are eager to tap into the powerful reach of social media influencers to promote their products. However, this new form of marketing has also attracted increased scrutiny from government regulators.
The Federal Trade Commission (FTC) in particular has ramped up enforcement of its endorsement guidelines as they apply to influencer marketing campaigns. Failure to properly disclose material connections between an influencer and a brand can result in serious legal consequences.
If your company receives an inquiry from the FTC regarding an influencer marketing campaign, it’s important to respond appropriately. Here is an overview of FTC endorsement guidelines, how to prepare if you receive a probe, and tips for conducting compliant influencer marketing moving forward.
FTC Endorsement Guidelines
The FTC’s Endorsement Guides provide instructions for disclosing material connections between brands and influencers. The basic requirements are:
- Clearly disclose if the influencer has a material connection to the brand, such as receiving compensation or free products.
- Ensure disclosures are clear and conspicuous – don’t hide them in a sea of hashtags or links.
- Disclose connections both visually in the post/video and in the caption.
The FTC has specifically called out fake reviews and unclear sponsorships as deceptive practices. Failing to abide by endorsement guidelines can lead to financial penalties or other legal action.
Preparing for an FTC Probe
If your company receives a probe letter from the FTC regarding an influencer campaign, remain calm but take it very seriously. You will likely have only 30 days to respond.
Immediately consult with legal counsel experienced in FTC matters. Pull together documentation on the campaign in question, including:
- Influencer contracts
- Creative briefs and guidelines given to influencers
- Records of payments to influencers
- Copies of posts and disclosure language
Draft a detailed response letter explaining the campaign and how disclosures were made. Include screenshots or other evidence. Provide full transparency to demonstrate a good faith effort at compliance.
If violations did occur, take responsibility and outline the steps you are taking to improve processes going forward. The FTC looks favorably on companies that acknowledge mistakes and strengthen compliance.
Conducting Compliant Influencer Marketing
Here are some tips for keeping your influencer marketing campaigns on the right side of FTC guidelines:
- Train influencers on disclosure requirements and regularly audit their posts.
- In contracts, make clear that proper disclosures are mandatory.
- Develop disclosure templates for influencers to easily copy/paste.
- Stagger disclosures throughout long videos so viewers don’t miss them.
- Monitor engagement and watch for suspicious spikes that could indicate fake followers.
Maintaining open communication with influencers is key. Check in frequently to reinforce expectations and address any concerns. No campaign is worth jeopardizing your company’s legal standing and reputation.
Influencer marketing can deliver outstanding ROI but it requires diligent oversight. If issues arise, respond swiftly and work cooperatively with regulators. Transparency is always the smartest approach.