FTC Reminds Influencers, Marketers About Disclosing 'Material' Relationship on Social Media

More than 90 letters were sent out to influencers and marketers, aimed at reminding them they "should clearly and conspicuously disclose their relationships to brands when promoting and endorsing products" on Instagram and other social media sites, said the FTC in a Wednesday news release. The agency said the letters were sent out after Public Citizen and other groups filed petitions on influencer advertising on Instagram. The FTC said if there's a "material connection" -- such as a business or family relationship, monetary payment or gift -- between an endorser and advertiser it must be clearly disclosed unless it's already clear from the context of the communication. Specifically, FTC staff letters said influencers and marketers should disclose the material connection within the first three lines of an Instagram post. Staff also said if a disclosure is included in multiple tags, hashtags or links readers may not notice them. The FTC said some letters addressed other unclear disclosures, "pointing out that many consumers will not understand a disclosure like '#sp,' 'Thanks [Brand],' or '#partner' in an Instagram post to mean that the post is sponsored."