|Published : 20 Apr 2017, 17:14:32|
FTC warns celebrities about paid ads
The US Federal Trade Commission (FTC) has sent over 90 reminders to influencers -celebrities, athletes, models - asking them to clearly state at the beginning of each post if they were paid to endorse a product or service, according to a FTC statement.
The FTC said any "material connection" should be made clear in the first three lines of a photo's caption -- so all mobile users can see it without needing to click "more" -- and noted a simple #sp (sponsored post) or "thanks [Brand]" aren't sufficient disclosures.
Sponsored posts on Instagram are big business for many. Kim Kardashian nets around $500,000 for a "campaign" worth of endorsements, according to US Weekly, and a user with between 3 and 7 million followers can expect a cool $75,000 per Instagram post, reported Esquire.
FTC did not reveal the list of recipients, although it said that the letters were sent partly in response to petitions filed by advocacy group Public Citizen.
The US isn't the only country with its eye on sponsored social-media posts. The Australian Association of National Advertisers added new guidelines stipulating that influencers have to clearly identify all sponsored content last month.
Instagram was contacted but declined to comment, according to media reports.