In the age of social media, influencer marketing has become one of the most effective ways for brands to reach their target audiences. However, with great influence comes great responsibility, particularly when it comes to adhering to advertising laws. Failure to comply with disclosure requirements can lead to legal repercussions for both influencers and the brands they collaborate with. Here, we’ll break down what influencers and brands need to know about advertising laws and disclosures.
Why Disclosures Are Necessary
Transparency is the cornerstone of trust between influencers and their followers. Disclosures ensure that audiences are aware when content is sponsored or incentivized by a brand. The Federal Trade Commission (FTC) mandates these disclosures to protect consumers from deceptive advertising practices. By clearly stating that a post is an ad or a paid collaboration, influencers help maintain credibility while adhering to legal requirements.
Key FTC Guidelines for Influencer Disclosures
- Clear and Conspicuous Disclosures: Disclosures must be easy to understand and prominently placed in the content. Avoid vague terms like “partner” or “thanks to”—instead, use explicit terms like “#ad,” “sponsored,” or “paid partnership.”
- Placement Matters: Disclosures should appear in a location that’s hard to miss, such as at the beginning of a post or video, or in a visible part of a caption. Burying disclosures in a string of hashtags or at the bottom of a lengthy caption is not sufficient.
- Consistency Across Platforms: Whether the content is shared on Instagram, YouTube, TikTok, or any other platform, the same rules apply. Each post, video, or story must include the necessary disclosures.
- Language and Visibility: Disclosures should be in the same language as the content and clearly visible on all devices. For video content, verbal disclosures or on-screen text are required.
- Influencer-Specific Responsibility: Even if the brand fails to provide guidance, or contractually asks you to not, influencers are legally obligated to include disclosures when promoting products or services in exchange for compensation or gifts.
Examples of Non-Compliance
Several high-profile cases have highlighted the consequences of failing to adhere to FTC guidelines. Influencers who do not disclose their paid partnerships risk public scrutiny, fines, and damage to their professional reputation. Brands may also face penalties for misleading advertising practices, making it essential for both parties to understand and enforce these rules.
Best Practices for Influencers
- Communicate with Brands: Before posting sponsored content, clarify disclosure expectations with the brand.
- Use Built-In Tools: Many platforms, such as Instagram and YouTube, offer branded content tools to help disclose partnerships transparently.
- Stay Updated: FTC guidelines may evolve, so it’s crucial to stay informed about changes in advertising laws.
- Be Honest: Always disclose when there is a material connection to a brand, even for gifted items or affiliate links.
How Landry Legal Can Help
Navigating the complex world of advertising laws can be daunting, especially as an influencer or a growing brand. At Landry Legal, PLLC, we’re here to provide you with the guidance you need to stay compliant and protect your reputation. Whether you need help drafting or reviewing contracts, understanding disclosure requirements, or addressing potential legal issues, our team is ready to assist.
Contact us today at 888-914-0011 or email us at contact@landrypllc.com to schedule a consultation.
