Influencer Advertising the Federal Trade Commission Meredith Lowry

Influencer Advertising & the Federal Trade Commission Meredith Lowry Wright Lindsey Jennings LLP mlowry@wlj. com @meredithlowry

Problems Fake reviews Fake grassroots campaigns - Astroturfing Distinguishing Native Advertising from Editorial Content

Basic Premise Advertising Must be Truthful Advertisers Must Have Evidence for Claims Marketers May Use Disclosures to Avoid Deception Disclosures must be Clear & Conspicuous

Application to Bloggers & Influencers Bloggers and Influencers can be both Advertisers and Endorsers Advertisers, Bloggers and Influencers are Liable for Claims made that are Deceptive

Types of Deceptive Claims 1. Claims that fail to disclose a material relationship

Types of Deceptive Claims 2. Claims that aren’t supported by scientific evidence

What is an Endorser? Expresses His or Her Opinions, Information or Viewpoints In a manner that consumers would believe reflects the opinions of a person other than the actual advertiser Also referred to as advocates, influencers, or ambassadors Monetary payment isn’t necessary if goods given for comments

Bloggers Advertising Liability Advertisers are liable for claims made that are Deceptive Advertisers are liable for misrepresentations or unsupported Representations Liable even if a third party provided the representations

Disclosures – Clear & Conspicuous Proximity to Advertisement Utilize Hyperlinks Effectively

Disclosures – Clear and Conspicuous

Disclosures – Hyperlinks Make Link Obvious Label Link Appropriately to Convey Importance of Information it Leads to Make Link Noticeable Assess Effectiveness of Link by Watching Click-through Rates

Solutions Disclose financial arrangements in conspicuously in clear language Consider the “significant minority” of readers

Sources Federal Trade Commission (2013) ‘. Com Disclosures – How to Make Effective Disclosures in Digital Advertising’, available at: https: //www. ftc. gov/sites/default/files/attachments/press-releases/ftc-staffrevises-online-advertising-disclosureguidelines/130312 dotcomdisclosures. pdf Federal Trade Commission (2009) ‘Guides Concerning the Use of Endorsements and Testimonials in Advertising’, available at: https: //www. ftc. gov/sites/default/files/documents/one-stops/advertisement -endorsements/091005 revisedendorsementguides. pdf Federal Trade Commission (2015) ‘The FTC’s Endorsement Guides: What People Are Asking’, available at: https: //www. ftc. gov/tips-advice/businesscenter/guidance/ftcs-endorsement-guides-what-people-are-asking