July 02, 2021
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.
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.
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:
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.