Can we pay them for letting us use their endorsements? For example, simply flagging that a post contains paid content might not be sufficient if the post mentions multiple brands and not all of the mentions were paid. Basically, don't be shady. If I write a blog sharing my thoughts about the product, should I disclose anything? You don't need to be a zombie to enjoy the illusion you're feasting on human flesh! Is it sufficient for me to rely on that tool? Will we be liable if someone in our network says something false about our product or fails to make a disclosure? The same is usually true if the endorser has been paid or given something of value to tout the product. Therefore, it might be better to err on the side of caution and disclose that donations are made to charity in exchange for reviews. Report International Scams at econsumer.gov (video) Your complaints help the FTC and law enforcement agencies conduct investigations, bring lawsuits and prevent international scams. What about a disclosure in the description of an Instagram post? But if a significant portion of his followers don’t know that, the relationship should be disclosed. Is it ok if it’s at the end? The products that I promote are also sold in the U.S. Am I under any obligation to tell my viewers that I have been paid to endorse products, considering that I’m not living in the U.S.? Moreover, the financial arrangements between some bloggers and advertisers may be apparent to industry insiders, but not to everyone else who reads a particular blog. The Federal Trade Commission (FTC) was established as an independent administrative agency pursuant to the Federal Trade Commission Act of 1914. We pay and direct the influencers. The use of  “#sp”, “#spon”, “#paid”, etc. You don’t necessarily have to use words to convey a positive message. 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. Affiliate disclosures should be written so they're easily understandable. Generally not, but if concerns about possible violations of the FTC Act come to our attention, we evaluate them case by case. Does it matter? However, the same general principle – that people get the information they need to evaluate sponsored statements – applies across the board, regardless of the advertising medium. Have adequate proof to back up the claim that the results shown in the ad are typical, or. I’m a blogger. This practical guide allows any business, big or small, to create and maintain its own social media strategy no more paying agencies or hiring expensive consultants. Also, even if getting one free item that’s not very valuable doesn’t affect your credibility, continually getting free stuff from an advertiser or multiple advertisers could suggest you expect future benefits from positive reviews. Therefore, if you give free products to reviewers you should disclose next to any average or other summary rating that it includes reviewers who were given free products. Determining whether followers are aware of a relationship could be tricky in many cases, so we recommend disclosure. Is “#employee” good enough? No money changes hands. To get feedback on the food and service, I’m inviting my family and friends to eat for free. If you endorse a product through social media, your endorsement message should make it obvious when you have a relationship ("material connection") with the brand. The disclosure should catch users’ attention and be placed where they aren’t likely to miss it. Again, determining that could be tricky, so we recommend disclosure. If your audience thinks that what you say or otherwise communicate about a product reflects your opinions or beliefs about the product, and you have a relationship with the company marketing the product, it’s an endorsement subject to the FTC Act. Still others send offers of discount codes to those who previously posted reviews in exchange for discounted products. Also, depending upon what it says, the badge may not adequately inform consumers of your connection to the trade association. When you send a tweet, post to Facebook, upload an image to Instagram, pin an image to Pinterest, or update any other social media channel that is promoting (amplifying) a sponsored post or sponsored content, you need to once again let your readers know they are reading sponsored content. Below is a list of those six identifiers, with successful native advertising examples for each, so you can have an easier time spotting native ads and formulating your own plan for sponsored content. What if all I get from a company is a $1-off coupon, an entry in a sweepstakes or a contest, or a product that is only worth a few dollars? When in the review should I make the disclosure? Followers might not know why you are tagging a dress and some might think you’re doing it just because you like the dress and want them to know. Knife manufacturers know how much I love knives, so they send me knives as free gifts, hoping that I will review them. Some influencers only tag the brands of their sponsors, some tag brands with which they don’t have relationships, and some do a bit of both. A disclosure that is made in both audio and video is more likely to be noticed by consumers. As always, we encourage you to take some time to read through the FTC guidelines for yourself! Affiliate disclosure guidelines 1. Our company’s policy says that employees shouldn’t post positive reviews online about our products without clearly disclosing their relationship to the company. Specific social media platforms, such as Instagram and YouTube, also provide guidelines to their ad . No. Now suppose the person works for the company that sells the product – or has been paid by the company to tout the product. Would that recommendation factor into your decision to buy the product? But “Thanks XYZ for the free product” or “Thanks XYZ for the gift of ABC product” would be good enough – if that’s all you got from XYZ. Expert Endorsers Making Claims Outside of Traditional Advertisements, Using Testimonials That Don’t Reflect the Typical Consumer Experience, The FTC’s Endorsement Guides: What People Are Asking. Federal Trade Commission guidelines for social media endorsements require that influencers prominently disclose if they receive anything—cash, gifts, or something else—that could affect how . Found insideAfter reading this book you'll learn how to master the Linkedin platform to develop business, including how to create a sales-oriented profile and connections policy to attract more leads, become an industry thought leader by establishing ... I've seen some say it at the top and others at the bottom. But we have several thousand people working here and we can’t monitor what they all do on their own computers and other devices when they aren’t at work. For example, if customers are told in advance that their comments might be used in advertising, they might expect to receive a payment for a positive review, and that could influence what they say, even if you tell them that you want their honest opinion. To file a complaint or get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. You could say something like, “I get commissions for purchases made through links in this post.” But if the product review containing the disclosure and the link are separated, readers may not make the connection. People reading your posting on a review site probably won’t know who you are. The Commission's recent request for public comment on the Endorsement Guides, which was formally published in the Federal Register on February . According to the FTC, #ad or #sponsored are the preferred hashtags for sponsored content campaigns. If you’re new to blogging, the FTC Guidelines for Bloggers may seem a bit overwhelming, but trust me they’re not. Am I liable for that? A disclosure like “Company X gave me [name of product], and I think it’s great” gives your readers the information they need. That said, some of your tweets responding to questions about the event might not be endorsements, because they aren’t communicating your opinions about the conference (for example, if someone just asks you for a link to the conference agenda). On social media, using the word “AD” “#AD” “AD:” or “Sponsored” is sufficient, which is why we require our influencers to include “AD” in every social media post. in your claims about a product. Is that an "endorsement" that needs a disclosure? What does the FTC have to say about product placements on television shows? Like the FTC on Facebook, follow us on Twitter, read our blogs, and subscribe to press releases for the latest FTC news and resources. No. The FTC works to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop and avoid them. Is that still an endorsement subject to the FTC’s Endorsement Guides? . If you write about how much you like something you bought on your own and you’re not being rewarded, you don’t have to worry. Of the top 50 accounts, 30 accounts posted sponsored content. So, although we aren’t saying it has to be at the beginning, it’s less likely to be effective in the middle or at the end. Are “#client” “#advisor” and “#consultant” all acceptable disclosures? A hyperlink like that isn’t likely to be sufficient. Consumers should be able to notice the disclosure easily. So they won’t hear an audio-only disclosure. I’m starting a new Internet business. Under Section 5 of the Federal Trade Commission Act, the Commission has broad authority to prohibit "unfair or deceptive acts or practices" in interstate commerce. The FTC did not immediately return a request for comment. Constant Comedy takes readers behind the scenes into the comedy startup on its way to becoming one of the most successful and creative purveyors of popular culture in the United States. Each year, the Ombudsman evaluates the conduct of these activities and rates each agency’s responsiveness to small businesses. of the page, outside of the blog, might also be overlooked by consumers. If there are multiple, periodic disclosures throughout the stream people are likely to see them no matter when they tune in. Should I include an additional disclosure when I post on Facebook about how useful one of our products is? Even though the services might say that a review is not “required,” it’s at least implied that a review is expected. Having it at the beginning of the review would be better. Many people might watch the video without even seeing the description page, and those who do might not read the disclosure. In the second one, you are working it into the post in a more natural way, while still meeting the guideline. To that end, the FTC wants to create more transparency in sponsored content by placing more onus on . That content, advertising space or post will be clearly identified as paid or sponsored content in accordance with the FTC Guidelines. The purpose of the FTC is to enforce the provisions . No, you aren’t liable for the changes the marketer made to your review. A Quick Look At The Newest FTC Social Media Guidelines For 2016. Found insideFederal Trade Commission native advertising and influencer regulations The FTC has identified native advertising as a priority ... For example, if an app developer gave you their 99-cent app for free for you to review it, that information might not have much effect on the weight that readers give to your review. Found insideThough much of the guidelines reflected existing practice, the FTC asked for two significant ... “Sponsored Advertising Content,” or some variation thereof. Answers to questions people are asking about the FTC’s Endorsement Guides, including information about disclosing material connections between advertisers and endorsers. . UPDATED November 14, 2019 — The FTC's endorsement guidelines for sponsored content rests on a simple assumption: consumers are likely to react differently to recommendations that come from trusted friends (or social media stars) than from people who receive compensation to endorse a product. Is that true? My company runs contests and sweepstakes in social media. The disclosure should be easy to notice and read in the time that your followers have to look at the image. The Guides are intended to give insight into what the FTC thinks about various marketing activities involving endorsements and how Section 5 might apply to those activities. What about “#ad” at or near the end of a post? Watch a video. You can check out a copy here: FTC Guidelines. No. The FTC, which has the authority to bring charges against companies that deceive consumers, now has nonbinding guidelines on the use of the sponsored content ads. Should I still make a disclosure? What are our responsibilities? Suite 317, It wouldn’t be reasonable to expect you to monitor every social media posting by all of your employees. But even for less valuable products, it’s best to be open and transparent with your readers. We encourage influencers to incorporate an organic statement into the first paragraph of their post to inform their audience that it is sponsored content, while still encouraging them to read on along with clear disclosure at the bottom as well. Also, if you learn that an employee has posted a review on the company’s website or a social media site without adequately disclosing his or her relationship to the company, you should remind them of your company policy and ask them to remove that review or adequately disclose that they’re an employee. To let readers know the are reading sponsored content on a social media channel, in every social media amplification and it needs. In addition, the Guides say, if there’s a connection between an endorser and the marketer that consumers would not expect and it would affect how consumers evaluate the endorsement, that connection should be disclosed. The Guides offer more than 35 examples involving various endorsement scenarios. In the case of affiliate links or sponsored content, the anchor text needs to . 45. The FTC enters consumer complaints into the Consumer Sentinel Network, a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. and abroad. In each case, influencers were not required to clearly state that the content they were sharing with their audience was paid for. My company recruits “influencers” for marketers who want them to endorse their products. Your viewers may assess your review differently if they knew you got the knife for free, so we advise disclosing that fact. (#ad) http://bit.ly/UJOMAl. Having regulated brands and social media influencers for years where sponsored posts are concerned, trade publication WWD reported that the FTC started taking notice of one of . In so doing, the FTC is clarifying the lines between normal social media posting and advertisements. However, the word “sweeps” probably isn’t, because it is likely that many people would not understand what that means. To be cautious, you could have a continuous, clear and conspicuous disclosure throughout the entire stream. The FTC guidelines take the time to point out that clear and conspicuous disclosures are not just good for consumers, they are good for vendors and advertisers as well. If I upload a video to YouTube and that video requires a disclosure, can I just put the disclosure in the description that I upload together with the video? I've seen some say it at the top and others at the bottom. A Summary of Disclosures 101 for Social Media Influencers: What Influencers Should and Shouldn't Do It would be much clearer to use the words “my company” or “employer’s” in the body of the message. On blog posts the disclosure must be clear as well. The FTC (Federal Trade Commission) has long been aware of the problem of influencers and celebrities failing to disclose sponsored content on their social media channels. The point is to give readers the essential information. Do we still need to disclose which reviews were of free products? What about a “buy now” button? Does it matter how I got the free product to review? Do I need to make a disclosure? How can I make a disclosure on Snapchat or in Instagram Stories? Disclosures should not be hidden or buried in footnotes, in blocks of text people are not likely to read, or in hyperlinks. Is it OK for me to click a “like” button, pin a picture, or share a link to show that I’m a fan of a particular business, product, website or service as part of a paid campaign? There is a lot to be gained from working with influencers. But sometimes I get questions about the conference in my off time. If your product has changed, it’s best to get new endorsements. I disclose my relationship with the association in my blogs and in the tweets and posts I make about the event during the hours I’m working. The scope of the program depends on the risk that deceptive practices by network participants could cause consumer harm – either physical injury or financial loss. Even if some readers are aware of these deals, many readers aren’t. Stands Out. The Federal Trade Commission works to promote competition, and protect and educate consumers. A beautifully illustrated alphabet book for children aged 5-7 from award-winning children's author and illustrator Debi Gliori When people view Instagram streams, longer descriptions are truncated, with only the first two or three lines displayed. I create sponsored beauty videos on YouTube. However, you should establish a formal program to remind employees periodically of your policy, especially if the company encourages employees to share their opinions about your products. This comes hot on the heels of the settlement of their high profile case against Lord & Taylor, accused of hiring 50 influencers to post about their product on Instagram without disclosure. Bloggers who are part of network marketing programs, where they sign up to receive free product samples in exchange for writing about them, also are covered. We just entered into a contract with a videogame marketer to pay some of our network members to produce and upload video reviews of the marketer’s games. Say a car company pays a blogger to write that he wants to buy a certain new sports car and he includes a link to the company’s site. I share in my social media posts about products I use. a connection that might materially affect the weight or credibility of your endorsements (that is, your reviews), since bad reviews of each others’ books could jeopardize the arrangement. The same consumer protection laws that apply to commercial activities in other media apply online. The FTC Act's prohibition on unfair or deceptive acts or practicesÓ encompasses Internet advertisements, marketing & sales. The brochure also addresses how those established consumer protection principles apply in social media and influencer marketing. They will fly me to the launch and put me up in a hotel for a couple of nights. If you were paid to try a product and you thought it was terrible, you can’t say it’s terrific. If the payment for the endorsement isn’t expected by the audience and it would affect the weight the audience gives the endorsement, it should be disclosed. Would a single disclosure on my home page that “many of the products I discuss on this site are provided to me free by their manufacturers” be enough? Would a disclosure at the beginning of the stream be ok? One form is "native advertising," content that bears a similarity to the news, feature articles, product reviews, entertainment, and other material that surrounds it online. Here are some guidelines to follow when writing your affiliate disclosure. Since some publications only offered long-term commitments to marketers that could include other benefits (banners, email, social promotion, etc. He focuses on the two most important inflation-protected benefits military retirees and their families receive and can build upon for creating a financially independent and semi-retired lifestyle: military pension TRICARE health system He ... If you are interested in working with influencers, let us help you stay within FTC and industry guidelines while producing creative, engaging content that reaches your target audience. And even more recently, L’Oreal and Warner Bros were outed for hiring online influencers to share sponsored content without proper disclosure. I’m getting paid to do a videogame playthrough and give commentary while I’m playing. The key question is always the same: If consumers knew the company gave it to you for free (or at a substantial discount), might that information affect how much weight they give your review? Truth in advertising is important in all media, whether they have been around for decades (like television and magazines) or are relatively new (like blogs and social media). Advertisers need to have reasonable programs in place to train and monitor members of their network. Here are answers to some of our most frequently asked questions from advertisers, ad agencies, bloggers, and others. Tell us what you’re looking for and we’ll find the right match for your brand. And that’s a huge no-no. Thanks for the information. Online Advertising and Marketing. The numbers may look bad, but they actually. Get to know the Chuck Norris of parenting bloggers. Does she have to disclose when she’s being paid to tweet about products? I would prefer that recipients of my discount codes not have to disclose that they received discounts. I have a small network marketing business. You just talked about putting “#ad” at the beginning of a social media post. According to Activate's study, only 52% of influencers and 60% of marketers have a solid understanding of FTC guidelines for sponsored posts; and only 56% of influencers and 31% of marketers were . Put a program in place to check periodically whether your members are making those disclosures, and to deal with anyone who isn’t complying. 'Web browsers can arguably do more in alerting users about sponsored content.' Arunesh Mathur, Princeton University It’s how I start my day!” and takes a sip – a disclosure probably isn’t necessary. Not necessarily. While the FTC has supplemented its Endorsement Guides in recent years to provide guidance to businesses, the FTC last amended the Endorsement Guides in 2009, a different era in the world of social media. I still use the product. If your company allows employees to use social media to talk about its products, you should make sure that your relationship is disclosed to people who read your online postings about your company or its products. Knowing that reviewers got the product they reviewed for free would probably affect the weight your customers give to the reviews, even if you didn’t intend for that to happen. When Does the FTC Act Apply to Endorsements? What if I upload a video to YouTube that shows me reviewing several products? Follow them, but also follow the hashtags #influencers101 and #influencertips for more help with staying FTC compliant with your sponsored content. What matters is whether the information would have an effect on the weight readers would give your review. If they have no reason to expect compensation or any other benefit before they give their comments, there’s no need to disclose your payments to them. If you mention a product you paid for yourself, there isn’t an issue. In essence, all content you are sponsoring should be clearly noted as sponsored by your influencer from the start of every post, video, or other type of content. One of our company’s paid spokespersons is an expert who appears on news and talk shows promoting our product, sometimes along with other products she recommends based on her expertise. In addition, truth-in-advertising standards apply if . What can I do? But even if you don’t specifically ask for their endorsement, there may be an expectation that attendees will spread the word about the restaurant. My company wants to get positive reviews. If she sounds like your standard mom blogger think again: this woman has some serious guts! First, it may be relevant to readers that people endorsing your restaurant on social media are related to you. Somewhere between wrangling her four children, her dog and her husband, she still finds the much-needed girl time for a glass of wine while crafting. Found insideFaced with constant changes in consumer behavior, marketers are seeking various tools to promote and market their brands. That’s why disclosure is important. Delegating part of your promotional program to an outside entity doesn’t relieve you of responsibility under the FTC Act. So, although we aren’t saying it has to be at the beginning, it’s less likely to be effective in the middle or at the end. That common-sense premise is at the heart of the Federal Trade Commission’s (FTC) Endorsement Guides. The FTC has expressed the opinion that under the FTC Act, product placement (that is, merely showing products or brands in third-party entertainment content – as distinguished from sponsored content or disguised commercials) doesn’t require a disclosure that the advertiser paid for the placement. While the FTC doesn’t mandate specific wording of disclosures, the fact that an influencer has been paid must be clear in each post. As for where to place a disclosure, the guiding principle is that it has to be clear and conspicuous. Therefore, a disclosure placed above a photo may not attract their attention. My advice is to always send influencers a PDF version of the FTC's guidelines and ask them . The ad sales intelligence firm scanned sponsored content ads from 12,000 brands over the course of 2016. The closer it is to your recommendation, the better. An endorsement must reflect the honest opinion of the endorser and can’t be used to make a claim that the product’s marketer couldn’t legally make. Determining whether a small gift would affect the weight or credibility of an endorsement could be difficult. You can superimpose a disclosure on Snapchat or Instagram Stories just as you can superimpose any other words over the images on those platforms. According to the FTC, the goal in altering these guidelines is to "educate influencers that they are obligated to disclose relationships with brands when endorsing them". All of our employees agree to abide by this policy when they are hired. Influencer marketing is booming. ), some publications' unit pricing could be inflated. Here are a few posts you’ll find helpful: Stacy is a mom blogger who shares her experiences raising multiples and parenting a child with multiple food allergies. 844-GET-SWAY (844-438-7929), © 2021 Sway Group. Follow up if you find questionable practices. Small businesses can comment to the Ombudsman without fear of reprisal. To get the exact language of these guidelines, visit the FCC and FTC websites. (#ad) http://bit.ly/UJOMAl. This is true for any social media amplification for which you are being paid. The disclosures we are talking about are brief and there is no space-related reason to use a hyperlink to provide access to them. If they talk about their experience on social media, is that something that should be disclosed? The most important book on antitrust ever written. It shows how antitrust suits adversely affect the consumer by encouraging a costly form of protection for inefficient and uncompetitive small businesses. 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