The Federal Trade Commission in the US has warned both brands and social media influencers that they must fully disclose when a company pays an influencer for a product promotion. It has released new rules that say that any influencer endorsing a product must “clearly and conspicuously” state if they have been paid to make an endorsement, if they have been sent a sample for free, or if they have a family or business relationship with the product owner. Anyone who does not give such a disclosure may be guilty of “disguised advertising”, and may face punishment from the Federal Trade Commission. In its guidelines, it says that a disclosure such as “Company X sent me [this product] to try, and I think it's great” is sufficient.
