Full Disclosure: The FTC Updates Its Endorsement Guidelines

Last April, Lord & Taylor blitzed into thousands of social media feeds by having 50 influential style-savvy Instagram ambassadors each pose wearing the same dress. The campaign was a hit with consumers and the dress sold out almost immediately. There was, however, one major problem: Lord & Taylor and its content partners failed to mention it was a paid promotional campaign. It’s not just a dishonest and deceptive move – it’s an almost illegal one. The Federal Trade Commission recently updated their strict endorsement guidelines for the first time since 2010, and it’s up to brands to know these guidelines in order to avoid bad PR blowback and even false advertising lawsuits. As the social media world has shifted, the issue has gotten more complicated. The key, as always, is disclosure, says the FTC:

The Guides, at their core, reflect the basic truth-in-advertising principle that endorsements must be honest and not misleading. 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. 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 main thing to remember is that the guidelines apply across the board, whether it’s a print advertorial, or as in the Lord & Taylor campaign, an influencer-driven campaign. Brands should always disclose (and make sure partners disclose) paid endorsements with words such as “ad,” “sponsored” or “paid” in a blog post, tweet, caption or status update. The FTC doesn’t suggest exact wording, but truth in advertising is obviously the goal.

TPR POV: Generally speaking, it’s better to be safe than sorry. If you’re running an influencer campaign via social media, take some time to read and understand the FTC’s guidelines – and when in doubt, disclose. Likewise, know this: native and sponsored content has become ubiquitous, and when done right can deliver as credible and authentic a message as any form of communication. There’s simply no reason for brands to “hide” their intentions when it comes to paid promotional campaigns. On the contrary, dishonesty can easily torpedo any campaign, no matter your intentions.

For more on the updated disclosure guidelines, check out Marketing Land’s recent feature here.