Under the Influence: Disclosure Rules For Celebrity Social Media Endorsements

Brands on Social MediaMore and more brands are paying online “influencers” to engage with, positively review and market their products. However, recent federal actions, as well as a strong push from consumer groups, illustrate the importance of clearly disclosing the sponsored nature of such content. A quick scroll through one’s Instagram account invariably reveals numerous product endorsements, the majority of which fail to comply with guidelines set by the Federal Trade Commission (FTC). Brands, creators and endorsers have long assumed that government regulators would take a laissez-faire approach to enforcing endorsement rules in the social media space, but as recent events demonstrate, the time to clean up your paid influencer program is upon us.

Adam Solomon is the CMO of unstacked data solutions company Lotame.