As business-to-business influencer marketing continues to grow, so do the complaints surrounding brands and influencers failing to meet Federal Trade Commission (FTC) disclosure rules.
Samantha Rothaus, a partner in the Advertising + Marketing Practice Group at Davis+Gilbert, shared insights with Ad Age regarding disclosure requirements for businesses and influencers, and enforcement actions being taken.
Samantha noted that brands and influencers haven’t been strongly deterred from flouting disclosure requirements, at least not from traditional sources. For example, in recent months the FTC has not been prioritizing enforcement and issuing monetary penalties to brands and influencers that fail to meet its disclosure guidelines. But while this may not be a priority for the current FTC, the National Advertising Division (NAD), a self-regulatory body, has ramped up its enforcement efforts.
“While the NAD cannot administer financial penalties, it can dissuade brands and influencers from flouting disclosures by bringing them into the public eye, which can pose a reputational risk, especially for influencers,” Samantha explained. She went on to share that in recent years she has seen some enforcement actions where influencers are publicly identified, “and then these individuals lose their own credibility and opportunities with other brands.”
To read more about the current state of B2B influencer marketing, read the full article below.