FALSE ADVERTISING I FRAUD I ENDORSEMENT I SOCIAL MEDIA FRAUD – Social Media Influencers found Liable for False Advertising and Endorsement Fraud

FALSE ADVERTISING I FRAUD I ENDORSEMENT I SOCIAL MEDIA FRAUD – Social Media Influencers found Liable for False Advertising and Endorsement Fraud

July 02, 2021

False Advertising in Social Media

Social media is a major platform for marketing and advertisements and often is a lucrative line of revenue for influencers. However, with this line of revenue influencers have been quick to make false advertisements in hopes of earning quick profits, leading to civil liability in the realm of fraud and false advertising. With the rise of these allegations the FTC has been quick to respond by publishing an endorsement guideline aimed at social media influencers directly. The endorsement guideline serves as an outline as to what disclosures social media influencers must make when advertising a product or service and what statements should not be made, disclosure of which can lead to liability for fraud or false advertising.

FTC’s Regulation of Social Media Advertisement and Social Medial Endorsement

Social media influencers have not only created a platform for their own name recognition; however, they have simultaneously created a platform to market various products and services. Through advertisements, product placements and endorsements, influencers have created a lucrative revenue stream. The FTC has created an endorsement guide to help influencers follow regulations, understand their responsibilities and avoid liability for fraud or false advertising.

Influencer Responsibility to Avoid Fraud and False Allegations

Social media influencers have an obligation to make certain disclosures when advertising certain products and services. Specifically, when an influencer has a financial interest or a relationship whether it be an employment, family or personal, in products or services they are promoting, this interest must be disclosed. These disclosures must be clear and simple so that people can easily understand the influencers’ interest in the product. Aside from making the aforementioned disclosures there are other limitations on social media advertisements including:

• Influencers cannot comment or discuss their experience with a product or service they have not tried. Such statements are false and give way to a fraud claim.
• Influencers cannot falsely claim that a product or service was great when they did not have a good experience with the product or service.
• Influencers cannot make claims that a product or service can help with a health condition or other issue if there is no scientific proof to support that conclusion. Making false claims regarding a product or service gives was to an action for fraud or false advertising.

For additional Articles discussing the FTC’s Role in consumer protection please see the links below:

• ANTITRUST LAWS I BUSINESS FRAUD I CORPORATE FRAUD I BUSINESS AND ANTITRUST I PREDATORY PRICING – Antitrust Laws and Potential Liability for Predatory Pricing
• UNFAIR PRACTICES ACT I UNFAIR COMPETITION LAW I ANTITRUST LAWS I BUSINESS FRAUD I CORPORATE FRAUD I CALIFORNIA UNFAIR COMPETITION LAW – Producers Engaged in Price Fixing Drive out Competition in Violation of California Unfair Practices Act and Unfair Comp

For further articles discussing fraud and false advertisement please see the links below: 

• FRAUD I CORONAVIRUS FRAUD SCHEMES I COVID-19 SCAMS – THE CORONAVIRUS CRISIS HAS CREATED AN INCREASE IN FRAUD AND THE FTC IS WARNING CONSUMERS
• FRAUD I BREACH OF FIDUCIARY DUTY – What Fiduciary Duties Are Owed? A Fiduciary Owes The Duty Of Undivided Loyalty. What Happens If A Fiduciary Breaches Their Duty Of Undivided Loyalty?
• FRAUD I BREACH OF FIDUCIARY DUTY – What Fiduciary Duties Are Owed? A Fiduciary Owes The Duty To Use Reasonable Care. What Happens If A Fiduciary Breaches Their Duty To Use Reasonable Care?
• FRAUD I BREACH OF FIDUCIARY DUTY – What Is A Fiduciary Duty? What Does A Breach Of Fiduciary Duty Mean? What Is A Fiduciary?
• FRAUD – What Constitutes Fraud In California? What Does A Cause Of Action For Fraud By Intentional Misrepresentation In California Mean?
• FRAUD – WHAT CONSTITUTES FRAUD IN CALIFORNIA? WHAT DOES A CAUSE OF ACTION FOR FRAUD BY FALSE PROMISE IN CALIFORNIA MEAN?
• FRAUD VIA FALSE PROMISE OR PROMISSORY FRAUD
• INTENTIONAL FRAUD AND DECEIT
• CONVERSION OR BREACH OF FIDUCIARY DUTY 

• FRAUDULENT CONCEALMENT OR CONCEALMENT FRAUD
• FRAUD – Legal Liability For Fraud – Civil Tort For Conversion Or Breach Of Fiduciary Duty
• CONSTRUCTIVE FRAUD OR NEGLIGENT MISREPRESENTATION
• CORPORATE LAW – Corporations Claiming Personhood And Fiduciary Duties

For Articles discussing Fraud verdicts in California please see links below:

• BREACH OF CONTRACT I FRAUD I VERDICT – Homeowner Recovers $1.63 Million In Damages Against Mortgage Fraud Broker In Fraud, Negligent Misrepresentation, Breach Of Fiduciary Duty Action
• BREACH OF CONTRACT I BUSINESS LAW – FRAUD DAMAGES IN BREACH OF CONTRACT – COMPANY FAILS TO PAY FORMER PRESIDENT’S SHARES, PRESIDENT SECURES VERDICT FOR $553,000:
• FRAUD I BREACH OF FIDUCIARY – Drew Brees Alleges Breach Of Fiduciary Duty Against SD Jeweler Vahid Moradi
• FRAUD I BREACH OF FIDUCIARY – Jury awards Brees $6 million in Jewelry Fraud Lawsuit
• BREACH OF CONTRACT I FRAUD I VERDICT – Homeowner Recovers $1.63 Million In Damages Against Mortgage Fraud Broker In Fraud, Negligent Misrepresentation, Breach Of Fiduciary Duty Action
• FRAUD – Legal Liability for Fraud – Civil Tort for Conversion or Breach of Fiduciary Duty

For articles discussing Fraud and False Advertisement Damages please see the links below:

• FRAUD I DAMAGES I CIVIL LITIGATION – Punitive Damages Vs. Compensatory Damages
• FRAUD I DAMAGES I CIVIL LITIGATION – What Are Punitive Damages?

Recovery from the Victims Of Corporate Fraud Compensation Fund of California: For articles discussing damages:

• BUSINESS FRAUD I CORPORATE FRAUD – Payment From The Victims Of Corporate Fraud – VCFCF: Victims Of Corporate Fraud Compensation Fund
• BUSINESS FRAUD I CORPORATE FRAUD I DAMAGES – Compensation For “Aggrieved Person” Who Has Obtained A “Final Judgment” Against A Corporation Based Upon The Corporation’s Fraud, Misrepresentation Or Deceit – VCFCF: Victims Of Corporate Fraud Compensation Fun

Victim of False Advertising?

If you, your business or corporation has suffered a harm as a result of false advertising or fraud, learn your rights.  We encourage you to contact our offices at 619-432-5145 for a free consultation with one of our false advertising attorneys.