Truth in Advertising – Law Street https://legacy.lawstreetmedia.com Law and Policy for Our Generation Wed, 13 Nov 2019 21:46:22 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.8 100397344 The FTC Isn’t Kidding About Instagram Ads https://legacy.lawstreetmedia.com/blogs/technology-blog/the-ftc-isnt-kidding-about-instagram-ads/ https://legacy.lawstreetmedia.com/blogs/technology-blog/the-ftc-isnt-kidding-about-instagram-ads/#respond Fri, 21 Apr 2017 18:49:34 +0000 https://lawstreetmedia.com/?p=60342

The agency wants to put an end to sneaky #SponCon.

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The Federal Trade Commission means business when it comes to regulating Instagram advertisements.

The consumer rights advocacy group Public Citizen recently complained celebrities weren’t being upfront about which of their posts were sponsored. So, the FTC responded by reviewing the photos and sending warning letters to more than 90 Instagram users. The commission has discussed its standards for advertising on social media before, but has not directly confronted the celebrities named in complaints until now.

Public Citizen wasn’t alone in its push to make sponsored content more transparent—this past summer, the nonprofit Truth in Advertising filed a complaint against the Kardashian family for “deceptive marketing.” Though the FTC won’t name which celebrities received the letters, Public Citizen also included the Kardashians in its petition, in addition to well-known Instagrammers like Rihanna, Michael Phelps, Chris Pratt, Jennifer Lopez, Lindsay Lohan, Lebron James, Drake, Mark Wahlberg, and Blake Lively.

The 113 photos Public Citizen referenced in its complaint usually show the celebrities using a product from the brand that has paid them, with an accompanying caption endorsing it. Products range from makeup and hair care from companies like L’Oreal to athletic gear from Nike and Adidas to snacks from Lay’s and Dunkin’ Donuts.

According to a release on the FTC’s website:

The FTC’s Endorsement Guides provide that if there is a ‘material connection’ between an endorser and an advertiser – in other words, a connection that might affect the weight or credibility that consumers give the endorsement – that connection should be clearly and conspicuously disclosed, unless it is already clear from the context of the communication. A material connection could be a business or family relationship, monetary payment, or the gift of a free product. Importantly, the Endorsement Guides apply to both marketers and endorsers.

The release adds that Instagrammers should be clear that their post is an ad within the first three lines of the photo caption, and should avoid writing too many hashtags that could bury disclaimers. The use of hashtags and captions like “#sp” (short for “sponsored”), “Thanks [Brand],” or “partner” do not directly communicate that the post is sponsored and can confuse followers, the FTC says.

In its Endorsement Guides, the FTC writes that ads should be “honest and not misleading”—and consumers should know when they’re reading an endorsement that has been paid-for, because it can affect the way they “[evaluate] the endorser’s glowing recommendation.”

This doesn’t mean your favorite actors, athletes and reality stars are headed to court or getting banned from Instagram anytime soon. Often, it’s the sponsor behind the post that ends up taking the heat for its sneaky ad campaigns. In July, Warner Bros. settled charges that it failed to disclose information about paying “influencers,” like Youtube star PewDiePie, to recommend one of its video games. In March, the department store Lord & Taylor settled charges over its failure to inform consumers that it had sent popular Instagram users free clothing in exchange for promotion of one of its clothing lines.

Victoria Sheridan
Victoria is an editorial intern at Law Street. She is a senior journalism major and French minor at George Washington University. She’s also an editor at GW’s student newspaper, The Hatchet. In her free time, she is either traveling or planning her next trip abroad. Contact Victoria at VSheridan@LawStreetMedia.com.

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Truth in Advertising Org Threatens to Report Kardashian/Jenner Family to FTC https://legacy.lawstreetmedia.com/blogs/entertainment-blog/kardashian-jenners-deceptive-advertising/ https://legacy.lawstreetmedia.com/blogs/entertainment-blog/kardashian-jenners-deceptive-advertising/#respond Mon, 22 Aug 2016 19:41:11 +0000 http://lawstreetmedia.com/?p=55018

The sisters have been given a week to fix their "deceptive Instagram ads."

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Have you ever scrolled though your Instagram feed and stopped on an image of one of the Kardashian/Jenner sisters (yes, it’s ok to admit that you follow one, if not all of them) posing with some new fit tea, hair pill, or waist trainer? Was the photo perhaps missing a clearly visible sponsored content label?

Chances are your answers to both of these questions are yes, which is why the famous celebrity clan has been warned that if they don’t remedy their deceptive advertising practices in a week, a formal complaint will be filed with the FTC.

On August 17, Truth in Advertising.org sent the family’s matriarch/mom-ager, Kris Jenner, and 27 companies–including Puma, Calvin Klein, JetSmarter, Fit Tea, LuMee, and Balmain–a letter notifying them about the deceptive marketing campaigns. The nonprofit reviewed accounts for Kim, Khloe, Kourtney, Kylie, and Kendall, and found “a plethora of posts that do not clearly or conspicuously disclose their relationships with the companies being promoted in the posts as is required by federal law.”

TINA.org writes:

We intend to notify the Federal Trade Commission that these individuals and companies are engaged in deceptive marketing campaigns unless, by August 24, 2016, the issues described above are fully corrected by clearly and conspicuously disclosing that all applicable posts – past, present, and future – are paid advertisements or the result of material connections between the Kardashian/Jenner individuals and the companies featured in the posts.

Read TINA.org’s letter to the Kardashian-Jenner family here.

The sisters, who have a combined Instagram following of more than 316 million, reportedly make an upwards of $300,000 per sponsored post. According to TINA.org, youngest sister Kylie had the most problem posts, followed by Kim. Also, Puma, with which Kylie has an endorsement deal, lead all companies in improperly marked paid content with 13 posts.

While the girls have occasionally used tags such as #sp and #spon to mark their sponsored posts, the FTC told Bloomberg the subtle disclaimer isn’t enough. Using the hashtag #ad is okay, but only if it’s at the beginning of a post.

Since receiving the letter, the Kardashian-Jenners have already begun retroactively amending posts to contain #ad at the end. However,  since the number of impressions garnered on a post significantly decreases after the initial posting, this remedy may be a waste of time. On August 24 it will be interesting to see if TINA.org is satisfied with changes, or if the group decides to move forward with filing an official FTC complaint.

Alexis Evans
Alexis Evans is an Assistant Editor at Law Street and a Buckeye State native. She has a Bachelor’s Degree in Journalism and a minor in Business from Ohio University. Contact Alexis at aevans@LawStreetMedia.com.

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