Influencer Marketing and the Law Part I: FTC Puts Brands and Influencers on Notice That More Enforcement – and Penalties – Are Coming

As influencers on social media have gained in popularity, influencers—and the brands that use them—have come under increasing scrutiny by the Federal Trade Commission (FTC) to protect consumers from deceptive or unfair marketing practices.

In late 2021, the FTC warned 700 brands and advertising agencies that social media influencers must clearly disclose their brand connections in social media posts. This development indicates the agency is ready to take a more hardline approach to its enforcement efforts, while laying the groundwork for pursuing civil penalties against companies that violate its influencer guidelines.

In this PLI Chronicle article written by Advanced Media & Technology partner Nerissa Coyle McGinn, Nerissa outlines previous measures the FTC has taken to caution and inform brands and influencers against illegal advertising practices. Although the FTC has not accused recipients of any violations in prior letters thus far, the notices can serve in future filings to demonstrate that the companies had actual knowledge of the legal risk and engaged in unlawful conduct anyway.

Click here to read the full article on PLI PLUS.