{"id":9690,"date":"2023-08-16T14:29:33","date_gmt":"2023-08-16T14:29:33","guid":{"rendered":"https:\/\/mysourcefunding.com\/marketing\/the-ftc-updated-its-endorsement-guidelines-for-the-first-time-since-2009-and-some-people-have-questions\/"},"modified":"2023-08-16T14:29:36","modified_gmt":"2023-08-16T14:29:36","slug":"the-ftc-updated-its-endorsement-guidelines-for-the-first-time-since-2009-and-some-people-have-questions","status":"publish","type":"post","link":"https:\/\/mysourcefunding.com\/?p=9690","title":{"rendered":"The FTC updated its endorsement guidelines for the first time since 2009\u2014and some people have questions"},"content":{"rendered":"

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If journalists shouldn\u2019t bury the lede, then influencers shouldn\u2019t bury the #ad.<\/p>\n

That\u2019s at least what new guidelines from the Federal Trade Commission (FTC) suggest. Earlier this summer, the commission released a new set of guidelines around online reviews and social media endorsements, some of which could impact how influencers and advertisers disclose sponsored content.<\/p>\n

The last update to its endorsement guides occurred in 2009, and while much has changed in the influencer space since then, those working in the industry tell us that many of the changes were pretty predictable. Under the updated guidelines, influencers will likely have to be clearer about differentiating regular content from branded posts.<\/p>\n

\u201cThe most important thing to say about all the updates is the basic principles haven\u2019t changed,\u201d Michael Atleson, senior staff attorney at the FTC, told us, noting that the FTC\u2019s \u201cDisclosures 101 for Social Media Influencers\u201d brochure from 2019 is the same, as is the FTC\u2019s definition of \u201cclear and conspicuous\u201d disclosures.<\/p>\n

\u201cWhat we\u2019re doing is clarifying or expanding on how we think these principles\u2026apply in a world in which social media ads, including influencer campaigns and the use of online reviews, are more and more prevalent,\u201d he said.<\/p>\n

Still, the new guidelines have raised some questions, so we broke down some of the basics.<\/p>\n

Are the guidelines the law?<\/strong><\/p>\n

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No, but they are intended to help people avoid breaking it. \u201cThe endorsement guides are the official commission views on what sorts of practices relating to endorsements, we think, violate the law,\u201d Atleson said. In this case, the endorsement guidelines were updated to remind people of the rules about deceptive advertising as it relates to the FTC Act.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

\u201cThe point of having these guides over time is to help businesses with compliance. So there\u2019s no such thing as violating the guide, you violate the law,\u201d he added.<\/p>\n

Some of the topics addressed in the new guidelines include online reviews, virtual influencers, and child-directed advertising.<\/p>\n

What about disclosures?<\/strong><\/p>\n

The updated guidelines stress that creators should be even more upfront about which posts are sponsored, though Atleson said the FTC has consistently emphasized that for years.<\/p>\n

\u201cWhere you put the disclosure and whether you use a bunch of gobbledygook, like a hashtag and some letters mixed in with a whole bunch of other hashtags\u2026We have seen that as a problem,\u201d he said. \u201cThat’s why we thought it was important to actually put it into guides.\u201d<\/p>\n

Still, there\u2019s no one-size-fits-all approach to how to word a disclosure\u2014although you probably shouldn\u2019t make people scroll or click \u201cmore\u201d to find it, according to the FTC\u2019s FAQ.<\/p>\n

Holly Melton, partner at law firm Crowell & Moring LLP who co-leads the firm\u2019s advertising and media practice, told us it\u2019s a \u201cgood thing to maintain some flexibility\u201d and not put strict parameters on how to word disclosures. \u201cThat\u2019s probably the biggest kicker, \u2018What\u2019s the magic language?\u2019\u201d she said. \u201cI don\u2019t think there is any\u2014and for good reason.\u201d<\/p>\n

Is using a platform\u2019s tools enough to be \u201cclear and conspicuous\u201d about disclosures?<\/strong><\/p>\n

Up until now, that seems to have been the industry consensus. \u201cThe fact that [the FTC] hasn\u2019t updated [its guidelines] as the apps have updated their tools has been problematic,\u201d Permele Doyle, founder and US president at influencer agency Billion Dollar Boy, told us.<\/p>\n

While it may have been enough to abide by a platform\u2019s guidelines before, Melton said that\u2019s \u201cdefinitely not a foolproof approach now.\u201d If a platform doesn\u2019t require that disclosures are \u201cunavoidable to a consumer,\u201d she said, it probably doesn\u2019t meet the FTC\u2019s standard for clear and conspicuous disclosure.<\/p>\n

\u201cYou have to sort of judge for yourself whether using that platform, it\u2019s going to be clear and conspicuous to the people who are going to be reading your posts, or videos, or whatever it is,\u201d Atleson said. \u201cIt\u2019s probably, from our perspective, more important to comply with the law first and platform requirements second,\u201d he added.<\/p>\n

Will changes in these new guidelines impact engagement?<\/strong><\/p>\n

According to people in the industry, probably not. \u201cAudiences are becoming so sophisticated, it doesn\u2019t really matter,\u201d Doyle said. \u201cThey know that it’s sponsored; like having #ad or #sponsored doesn\u2019t really impact them.\u201d<\/p>\n

Ali Fazal, VP of marketing at creator management platform Grin, agreed: \u201cI think that there\u2019s historically been this fear from people who don\u2019t really understand the creative economy that something being an endorsement or an advertisement in an obvious or transparent way might turn off consumers, but our data suggests just the opposite.\u201d<\/p>\n

As did Melton: \u201cI don\u2019t think that people are as put off by disclosures as companies might otherwise think. This is the way that companies market now, so I would always advise an influencer, an agency, or a brand to err on the side of disclosure.\u201d<\/p>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

If journalists shouldn\u2019t bury the lede, then influencers shouldn\u2019t bury the #ad. That\u2019s at least what new guidelines from the Federal Trade Commission (FTC) suggest. Earlier this summer, the commission released a new set of guidelines around online reviews and social media endorsements, some of which could impact how influencers and advertisers disclose sponsored content. 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