Dive Brief:
- The FTC has updated the "What People Are Asking" portion of its FAQ page for endorsement requirements with more direct and detailed information surrounding social media marketing.
- The updates emphasize that material relationships between brands and endorsers on social media must be “clearly and conspicuously” disclosed.
- The FTC's policy hasn't changed, but now that guidelines have been expressed, it could mean stricter enforcement on social media.
Dive Insight:
Brands have been operating in a bit of a free-for-all when it comes to utilizing endorsers on social media. Endorsers haven't been held accountable to make clear that the messaging is coming directly from the brand or that money/material has been exchanged.
IZEA Founder and CEO Ted Murphy told Marketing Land the big issue is the lack of education in the marketing community, specifically to do with disclosure. Marketing Land notes that a 2014 IZEA survey found "29% of marketers were completely unaware of the disclosure rules and that only 10% were aware of and understand the FTC guidelines."
Now that the FTC has updated its guidance, brands should pay close attention that they aren't violating any of the policies -- and when in doubt, disclose.
