Legal Lessons for Advertisers and Agencies on Influencer Marketing
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On July 11, the Federal Trade Commission announced that it had come to a settlement with Warner Bros. Home Entertainment (WB) over its failure to adequately disclose it had paid influencers on YouTube to promote the launch of a new video game. This, in and of itself, isn’t news.
The FTC has made it known that it intends to protect consumers from deceptive social media marketing practices by ensuring that paid endorsements and testimonials are clearly and conspicuously disclosed as being paid. Since September, the FTC has settled three high-profile cases involving Microsoft, Lord & Taylor and WB in pursuing this policy.
What is interesting is how the FTC treated WB differently than Microsoft, even though both used YouTube influencers to promote a product. The differing treatment is instructive for advertisers and agencies alike.
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