FTC’s New Scrutiny Of Social Media Campaigns

Fresh on the heels of recent enforcement actions involving endorsements on social media, the Federal Trade Commission updated its answers to some frequently asked questions about its Guides Concerning the Use of Endorsements and Testimonials. In addition to formalizing what was outlined in recent enforcement actions, the updated FAQs provide long-awaited guidance with respect to a number of endorsement-related issues on social media, including incentivizing “likes,” pinning photos, tweeting, and streaming videos.

According to the FTC, clicking a “like” button, pinning a photo or sharing a link as part of a paid campaign “probably” requires a disclosure. It is required regardless of character limitations, such as on Twitter. The words or hashtags “Sponsored,” “Promotion,” “PaidAd,” or “Ad” may be used to disclose the connection. Recent enforcement actions emphasized the responsibility of companies (like PR companies) to ensure their employees are disclosing their relationship with clients when posting about them on social media. With respect to video platforms, like YouTube, disclosures should be made within the video, not in the video description, and toward the beginning of the video, not the end.

The FTC’s recent updates, long overdue, address what have become high profile issues regarding endorsements and testimonials on social media. Companies are now on notice regarding the FTC’s position on how to properly make clear and conspicuous disclosures on social media. Notably, this could be a precursor to more FTC enforcement against social media campaigns.