FTC Guidelines and Influencers
In today's digital age, social media influencers have significant potential to shape customer perceptions and behaviors. “In an era where traditional advertising and marketing can often feel intrusive and impersonal, influencers offer a human face to the products and services they endorse” (Nolden 2023).
With the advent of influencer marketing, in which corporations engage with influencers to promote their products or services, there is a greater need for transparency and honesty. Recognizing this need, the Federal Trade Commission (FTC) has issued guidelines to help influencers comply with laws and FTC rules relating to deceptive advertising and consumer protection. Consumers often do not know what is real and what is not, and can feel deceived by posts by their favorite influencers. “The boundary between organic and sponsored content can become somewhat hazy, especially when influencers blend purchased and gifted products in a single video. This is where the FTC’s Endorsement Guides come into play” (Nolden, 2023).
Influencers
Candace Marie:
Candice Marie is an influencer and social media consultant. She is also a founder of the non-profit Black In Corporate, which aims to aid black individuals navigate the corporate world. She is also a part time lecturer, teaching courses on social media on the graduate and executive level. She has extensive knowledge about social media, influencer marketing, partnerships, communications, PR and content creation, with more than 10 years of experience in the industry. Her years of experience and MBA are shown through her engagement statistics and measurable performance outcomes in the luxury, entertainment, fashion and editorial space for both domestic and international markets. Candace Marie has consulted with and worked for an extensive list of companies including Prada, Refinery 29, and Chanel. She has also partnered as a creative with many companies including Dior, Nordstrom, Tommy Hilfiger, and ULTA.
Chanel Tyler:
Chanel Tyler, “The Glow Expert,” is an entrepreneur, former YouTube executive and content creator emphasizing inclusivity and diversity in the beauty and skincare industry.
Chanel Tyler is an accomplished professional, having graduated from Spelman College and Columbia Business School, and went on to become a leader in and leave an impact on the beauty industry. Chanel began her career at Estée Lauder in marketing and later transitioned to her role at YouTube as the Global Lead, Creator & Content Partnerships for Beauty. After her time at YouTube, she began her current role as Head of Creator Business Development at Planet Howl. Chanel has supported beauty creators and developed impactful initiatives throughout her career. Her journey into influencing began with sharing skincare tips on social media, leading to the creation of her Glow Community.
Disclosure Guidelines
The FTC requires that an influencer must disclose when they have any financial, employment, personal, or family relationship with a brand. If an influencer has no brand relationship and is just telling people about a product they bought and happen to like, they do not need to declare that they don’t have a brand relationship.
In the Disclosure Guidelines, the FTC provides detailed information about how information should be disclosed, including:
● “Place it so it’s hard to miss”
○The guidelines describe the visibility of disclosures and information. The disclosure should be in the endorsement itself, or in the video. They advise that influencers do not put disclosures on a “click more” page or a collection of hashtags.
● “Use simple and clear language”
○ Simple explanations like “Thanks to Acme brand for the free product” or “ad” or “sponsored” are effective if they’re placed in a visible location. The FTC advises against using vague language like “collab.”
● “The disclosure should be in the same language as the endorsement itself.”
● “Don’t assume that a platform’s disclosure tool is good enough, but consider using it in addition to your own good, disclosure”
(FTC, 2023). The FTC also states that an influencer must only talk about their experience with a product they have tried, must be honest in their review (“If you’re paid to talk about a product and thought it was terrible, you can’t say it’s terrific.” (FTC, 2023)), and cannot make claims about a product that would require proof that the advertiser does not have, such as scientific proof that a product can treat a health condition.
We spoke with Candace Marie and asked for her input on why FTC guidelines are so important.
We also asked Chanel Tyler for her outlook on the ever evolving landscape of social media influencing and FTC guidelines.
How Different Influencers Disclose:
Our influencers described how they disclose, and good practices regarding disclosures. Candace Marie shared best practices for disclosing, and how she maintains authenticity while adhering to FTC guidelines.
Choosing who to work with and represent on your social media accounts is incredibly important for an influencer, since their accounts are their brand. We spoke to Chanel Tyler about what kinds of content she likes to create and who she chooses to partner with while staying authentic to her personal brand.
Chanel Tyler also shared with us how she personally discloses
Examples of Influencers’ Disclosures:
In this post by influencer Candace Marie, she is advertising a Carolina Herrera perfume being sold at Ulta Beauty. Candace Marie uses #ad and tags @carolineherrera and @ultabeauty in order to disclose that she is getting paid to post this. We asked Candace Marie for some backstory on this post and how it still fosters authenticity on her page and in her online persona.
This Candace Marie post is a paid partnership with Farm Rio. This post literally states “paid partnership” at the top in order to follow the FTC’s Disclosure Guidelines. This is an Instagram feature that Candace Marie is using. Additionally, in her caption she includes a tag for @FarmRio.
Disclosing in Different Ways & Other Interesting Disclosures:
Contests and Sweepstakes
For contests and sweepstakes, specific language should be used and it should be placed so it’s clear and conspicuous. The FTC states that “Making the word “contest” or “sweepstakes” part of the hashtag (e,g., #XZY_Contest or #XYZ_Sweepstakes) should be enough. However, the word “sweeps” probably isn’t because it’s likely that many people wouldn’t understand what that means.
The Shipwreck Rum post is an example of a giveaway post. Some hashtags included in this post are #sweepstakes and #contestalert along with more specific hashtags which relate to this specific contest.
Negative Comments for competing brands
The FTC states that “If you criticize a competitor of a brand that you are paid to endorse, you should disclose your paid relationship.” In other words, if an influencer posts negative comments or opinions on a brand that is competing with their endorsement deal, they must disclose their endorsement.
References:
Nolden, C. (2023, December 21). Navigating the new FTC guidelines: What brands and Influencers Need To Know. Burrelles. https://burrelles.com/navigating-the-new-ftc-guidelines-what-brands-and-influencers-need to-know/
Staff in the Office of Technology. (2023, August 10). Disclosures 101 for Social Media influencers. Federal Trade Commission. https://www.ftc.gov/business-guidance/resources/disclosures-101-social-media-influencers
Staff in the Office of Technology. (2023a, August 3). FTC’s endorsement guides: What people are asking. Federal Trade Commission. https://www.ftc.gov/business-guidance/resources/ftcs-endorsement-guides-what-people-are -asking
Chanel Tyler. The AFROTECH Experience. (n.d.). https://experience.afrotech.com/speaker-detail/?speaker_id=2149113&conference_id=4246
Candace Marie. (n.d.). https://www.candacemarie.co/
Ware, A. M. (2023, February 1). How this youtube beauty executive gets her skin so good. The Cut. https://www.thecut.com/2023/02/how-this-youtube-beauty-executive-gets-her-skin-so-good.html