Consequences of non-compliance
Both influencers and brands face serious consequences—like fines, legal fees and other penalties—if they don’t properly disclose partnerships. For example, in 2020, a tea company agreed to pay a $1 million settlement after the FTC found it had misled consumers by not disclosing payments to influencers promoting its products.
There is also the risk of consumer backlash. In 2023, the FTC issued warning letters to TikTok and Instagram health influencers who failed to disclose paid endorsements for artificial sweeteners and sugary foods. The resulting scandal eroded trust with followers, leading to negative comments and press.
Each social network has its own approach to disclosure requirements, and brands venezuela mobile database and influencers need to understand the nuances of each one. Remember, however, that using a platform’s built-in disclosure tools doesn’t guarantee compliance with the FTC’s rules. Here’s a quick guide to keeping content compliant across Instagram, Facebook, YouTube and more.
Instagram
According to their branded content policies, Instagram creators can only post branded content using the branded content tool, which applies a “Paid Partnership” label on posts, Stories, Reels and live content. This label indicates when a brand or business has influenced the content in exchange for payment or gifts. Creators must use this tool for sponsored content to maintain transparency with their followers.
Influencer marketing regulations by network
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