Influencer Endorsement and Online Review Regulations

Today, being an influencer is a career field, but like any career field, there are still legal regulations to abide by. In the last few years, the government has become much stricter about transparency—in the past it was too easy for influencers to endorse products or level critique or criticism, which seemed like neutral opinions, but which were actually paid by companies seeking the influencer’s positive opinions.

Who Has to Follow The Regulations?

If you are an influencer that sells, promotes, reviews, or even displays products, and you get money from the product itself, you need to be aware of the government’s requirements.

And you don’t have to be directly paid by the company—even if you are promoting or reviewing a product or company that you have some affiliation with—say, your mother’s company, or a company that your buddies own—or even if you are just an affiliate of a company that you are sending viewers to in order for them to buy things, but you get money from their purchases if they use your links or referrals, you need to abide by these guidelines.

What Has to be Disclosed?

If true, you are required to disclose that you received a product for free, or on a discount, by the manufacturer or seller.

This is true no matter how unbiased your reviews may be, and even if you aren’t afraid to give negative reviews to companies that supply you product. Saying “but I give impartial reviews,” is not a defense to ignoring the government’s regulations. Disclosures must be made even if the company that sent you the product didn’t ask you for anything, such as a review, a mention or a positive mention.

How to Disclose

You can disclose this relationship in writing or verbally, but in writing is better because no matter when a viewer happens to start your video, he or she will see the disclaimer.

You do not have to disclose details, like how much you are paid to show the product, or how much you get if the product is purchased. Simply saying you were provided a product by the company to review, or that you are doing a video or reel in partnership with a company, is fine.

However, avoid abbreviations or ambiguous terms—for example, don’t say “collab with Burger King,” or “#thanksamazon,” or similar language—be very clear in your disclosures and disclaimers, such that anybody of any technical knowledge would understand the relationship between you and the product or company you are endorsing or reviewing.

Be Truthful

Remember that just like the maker of the company can be liable for false advertising, so too can you—even though you’re not selling the product. While you can’t be sued for false advertising exactly (assuming you’re not selling whatever it is you’re reviewing), you can be liable should you make representations that a product does something it doesn’t or works in a way that it does not, if you get money directly or indirectly from the seller or manufacturer.

Note that so long as you have no relationship at all, and you derive no direct payment or benefit from the seller or manufacturer, you do not need to comply with these guidelines.

Treat your influencer status as a real business. See us about staying legally safe. Contact the West Palm Beach business litigation attorneys at Pike & Lustig for more information.

Source:

sproutsocial.com/insights/ftc-influencer-guidelines/