FTC Updates Disclosure Guidelines for Affiliates and Influencers – Tricia Meyer
By Tricia Meyer
Tricia Meyer, Affiliate Marketing Resources, Affiliate Summit, Affiliate Marketing, Newsletter Signup, Affiliate Marketing Consulting, About, Contact Me (an Affiliate Marketer, Blogger, and Consultant)
June 29, 2023
The Federal Trade Commission (FTC) has finally released updated Endorsement Guides, shaping the disclosure rules for affiliate marketers, influencers, and more. This update, long-awaited, incorporates references to "dog influencers" among other changes.
Key Takeaways for Affiliate Marketers:
- Liability Expansion: Everyone involved in marketing (bloggers, influencers, affiliates, agencies, advertisers) can now be held liable for non-compliance.
- "Clear and Conspicuous" Disclosure: Means making it impossible to miss, not just included.
- Responsibilities: Advertisers and intermediaries must provide guidance on rules, monitor compliance, and take action on non-compliance.
- Insufficient Tools: Reliance on built-in disclosure tools of social media platforms may not be adequate.
- "Paid Link" as Adequate Disclosure: "Affiliate link," "Affiliate," "Buy Now," and "Commissionable Link" are not sufficient.
- Influencer Liability: Endorsers can be held liable for false claims about personal use of a product.
- Social Media Tags: Tags in social media posts that promote brands with material connections require disclosure, and it must be unavoidable. An influencer cannot simply disclose connections on their profile; disclosure must appear in the post itself.
- Endorser Disclosure: Endorsers cannot rely solely on built-in platform tools; they must supplement if tools are insufficient.
- Target Audience Perspective: The effectiveness of a disclosure is evaluated based on the perspective of the target audience.
- Agency Liability: Advertising agencies and similar intermediaries can be liable for creating or disseminating deceptive endorsements, as well as hiring and directing endorsers who do not disclose properly. They must have "reasonable programs" in place to train and monitor influencers.
- Monitoring Endorsers: The FTC doesn’t provide specifics, suggesting "reasonable efforts" are required, potentially leading to pre-approval of posts for some companies.
- Affiliate Review Sites: Ranking brands on review sites must be done without payment for rankings.