FTC Updates Disclosure Guidelines for Affiliates and Influencers – Tricia Meyer
By Tricia Meyer
Affiliate Marketing Resources | Affiliate Summit | Affiliate Marketing | Newsletter Signup | Affiliate Marketing Consulting | About | Contact Me
Affiliate Marketer, Blogger, and Consultant
The Federal Trade Commission (FTC) has finally updated its Endorsement Guides, which outline the disclosure rules for affiliate marketers, influencers, and other creators. This update comes after a long wait, with the proposed changes first appearing in May 2022.
I’ll break down these guidelines into two sections: key takeaways for affiliate marketers and additional interesting points. The full document is 80 pages of guidelines plus an additional site of FAQs!
Key Takeaways for Affiliate Marketers
Clear and Conspicuous Disclosure
- Every user, including bloggers, influencers, affiliates, agencies, advertisers (but not tracking platforms/networks unless acting as agencies), must ensure their disclosures are "clear and conspicuous."
- This means they should be unavoidable.
Responsibilities of Advertisers and Intermediaries
- They need to provide guidance on the rules, monitor compliance, and take action if there’s non-compliance.
- Reliance on built-in disclosure tools from social media platforms might not be sufficient.
Adequate Disclosure Methods
- "Affiliate link" is not adequate. Neither are "Affiliate," "Buy Now," "Commissionable Link," or similar terms.
- "Paid Link" is considered adequate for disclosing affiliate connections.
Influencer Responsibilities
- Influencers can be held liable for false representations about their product usage.
Social Media Post Disclosures
- Tags: Tags in social media posts can be considered endorsements that need to be disclosed if the influencer has a material connection to the brand. For instance, posting an outfit with branded tags but receiving payment or free products from these brands is not sufficient disclosure.
- Profile Disclosures: Influencers cannot simply disclose brand connections on their profile; disclosures must appear in individual posts and be unavoidable.
Intermediaries and Agencies
- Advertising agencies, public relations firms, review brokers, and similar entities can be liable if they create or disseminate deceptive endorsements or hire and direct endorsers who don’t properly disclose.
- These companies should have "reasonable programs" to train and monitor influencers they pay and direct. The FTC doesn’t specify what constitutes "reasonable efforts," but suggests pre-approving posts as a consideration.
Additional Points:
- Target Audience: The effectiveness of a disclosure is evaluated from the perspective of the target audience (e.g., kids, elderly, or foreign language speakers).
- Affiliate Review Websites: These sites that rank brands must also adhere to these guidelines.