The FTC Is Cracking down on Influencer Marketing on YouTube, Instagram, and TikTok

Commissioner Rohit Chopra called for tougher penalties on companies that disguise advertising on platforms like Instagram, YouTube, and TikTok as authentic reviews in a statement sent out Wednesday. The statement came after the FTC voted 5-0 to approve a Federal Register notice that would seek public comment on whether Endorsement Guides for advertising (which haven’t been updated since 2009) need to be reviewed.

For years, the Federal Trade Commission has required influencers to disclose sponsored posts, but the guidelines seem to have had little effect. In one recent case mentioned in the letter, a Lord & Taylor campaign paid 50 social media influencers to post about a dress on Instagram, but didn’t require them to disclose that the posts were sponsored. The FTC charged Lord & Taylor with deceiving the public, settling the case by prohibiting the company from “misrepresenting that paid ads are from an independent source,” but didn’t levy a monetary fine.

The statement specifically notes the rise of influencer marketing on Instagram, YouTube, and TikTok, and the difficulties in seeking truthful information when “fake accounts, fake likes, fake followers, and fake reviews are now polluting the digital economy.” In other words, the FTC is sick of fake friends, and seeking real consequences for companies that violate its policies.