The FTC has updated its endorsement guidelines, impacting how ecommerce businesses manage influencer marketing and user-generated content. This episode clarifies what constitutes a material connection, when disclosures are necessary, and offers actionable advice to navigate the gray areas of gifting products and working with creators to ensure compliance and avoid legal pitfalls.
Key takeaways
Understand that receiving free product can be considered a material connection by the FTC, requiring disclosure if it influences an endorsement.
Implement clear disclosure practices (e.g., #ad) for any paid influencer promotions or when product is given in exchange for a post/review.
When sending products with "no strings attached," assess the value of the product and the creator's audience. Highly valuable items or creators whose audience expects reviews may still necessitate disclosure if they post.
For post-hoc arrangements, if an initial, unsolicited post didn't require disclosure, a brand can later engage the creator for more content, but all subsequent content *must* include appropriate disclosures as per the new agreement.
If an influencer has built their following on reviewing specific types of products, and they receive a product for free in that category, their audience would likely want to know about the free product. This makes disclosure more critical.
Utilize tools like Social Snowball for affiliate marketing to manage disclosures and tiered incentives effectively, especially for modern affiliates like creators and ambassadors.
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[00:02:55] FTC updates guidelines on advertising practices. Consult attorney for specific situations.
[00:06:56] FTC rules on disclosing connections in advertising.
[00:11:37] Social Snowball: Modern affiliate platform, eliminating code leaks, tiered system, easy payments.
[00:15:13] Disclosure of receiving free products for review.
[00:19:49] Consider relationships and legal implications of posting.
[00:24:38] Track influencers, analyze metrics, and reach out.
[00:28:28] Disclose video content's connection in ads.
[00:32:45] Customer reviews & disclosure rules clarified.
[00:33:52] "Low risk tolerance, influencer product endorsements"
[00:37:15] Contact us on Twitter for influence marketing help.
In this week’s episode we are joined by Rob Freund to dive into the world of influencer marketing and the latest updates from the FTC regarding influencer endorsement guidelines. We discuss the importance of clear and conspicuous disclosure between advertisers and endorsers, exploring scenari
Frequently asked about this episode
What does this episode say about brand risk management?
Understand that receiving free product can be considered a material connection by the FTC, requiring disclosure if it influences an endorsement.
What does this episode say about influencer marketing compliance?
Implement clear disclosure practices (e.g., #ad) for any paid influencer promotions or when product is given in exchange for a post/review.
What does this episode say about legal guidelines?
When sending products with "no strings attached," assess the value of the product and the creator's audience. Highly valuable items or creators whose audience expects reviews may still necessitate disclosure if they post.
What does this episode say about ugc strategy?
For post-hoc arrangements, if an initial, unsolicited post didn't require disclosure, a brand can later engage the creator for more content, but all subsequent content *must* include appropriate disclosures as per the new agreement.
What does this episode say about brand risk management?
If an influencer has built their following on reviewing specific types of products, and they receive a product for free in that category, their audience would likely want to know about the free product. This makes disclosure more critical.
