{"id":58,"date":"2020-07-15T14:14:53","date_gmt":"2020-07-15T14:14:53","guid":{"rendered":"https:\/\/salarydistribution.com\/2020\/07\/15\/ftc-proposes-changes-to-disclosure-guidelines\/"},"modified":"2020-07-15T14:14:53","modified_gmt":"2020-07-15T14:14:53","slug":"ftc-proposes-changes-to-disclosure-guidelines","status":"publish","type":"post","link":"https:\/\/salarydistribution.com\/affiliate-marketing\/2020\/07\/15\/ftc-proposes-changes-to-disclosure-guidelines\/","title":{"rendered":"FTC Proposes Changes to Disclosure Guidelines"},"content":{"rendered":"
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\"FTC<\/p>\n

The FTC came out with two documents this week that are significant for affiliate marketers, influencers, and merchants. For all of the background information on where the FTC currently stands, check out my post Affiliates Take Note: New FTC Disclosure Guidelines.<\/a> It includes 7 years worth of statements, settlements, and updates from the FTC in one place.<\/p>\n

Right now the FTC is talking a lot about \u201cinfluencers\u201d and doesn\u2019t distinguish how they are paid. In affiliate marketing, we might want to know if they are being paid when people click on their links or use their exclusive coupon codes or whether they are flat fees (or maybe a combination of both). But for purposes of this discussion, the FTC does not seem to care about payment details and is more concerned in general about the practice of influencer marketing<\/strong> and how brands are using the influencers to get away with advertising that doesn\u2019t look like advertising (they actually call it \u201claunder advertising\u201d<\/strong> and \u201cillegal payola\u201d<\/strong> which makes it sound even more sketchy!)<\/p>\n

Statement of Commissioner Rohit Chopra<\/h2>\n

Let\u2019s start with the Statement released on February 12, 2020. Regarding the Endorsement Guides Review. <\/a><\/p>\n

The Commissioner cites that influencer marketing will reach $15 billion for 2022 and that it is getting harder for families and small businesses looking for truthful information<\/strong>. It also believes the tech companies are part of the problem and not the solution right now.<\/p>\n

In an interesting statement and a change from the website that was fined last week<\/a>, the Commissioner says that they want to \u201cfocus on advertisers, not small influencers.\u201d<\/strong> Specifically \u201cWhen individual influencers are able to post about their interests to earn extra money on the side, this is not a cause for major concern.\u201d Chopra seems most frustrated that past enforcement (like the Lord & Taylor settlement) isn\u2019t \u201cdeterring misconduct in the marketplace\u201d and wants to be able to pursue larger sanctions against companies in violation.<\/strong><\/p>\n

Chopra wants to review the Endorsement Guides and would like the FTC to:<\/p>\n

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  1. Develop specific requirements for any technology platform that facilitates or in any way profits from influencer marketing.<\/li>\n
  2. Turn the \u201cguides\u201d into codified rules that will allow for both civil penalties and damages.<\/li>\n
  3. Give specific contractual requirements that all influencers will have to follow in their campaigns.<\/li>\n<\/ol>\n

    So after a long time of wondering if the FTC was going to actually take the disclosure guidelines seriously, I think we have our answer. There\u2019s just too much money being made not to.<\/p>\n

    FTC Looking for Public Comment<\/h2>\n

    As mentioned in Chopra\u2019s statement, the Commission wants to review the current Endorsement Guidelines and is now seeking public comment: FTC Seeks Public Comment on Its Endorsement Guidelines<\/a><\/p>\n

    This is an opportunity for our industry to officially tell the FTC what we like and don\u2019t like about the Guidelines. What is possible for us to do and what isn\u2019t.<\/p>\n

    A proposed Federal Register Notice<\/a> gives a lot more detail about what the FTC is going to be considering. The questions are just a starting point and not a limitation on comments. Further, the FTC would like commenters to submit any available evidence and data that they have, including consumer complaints. You can read all of the proposed questions<\/strong> yourself but these are the ones that stuck out to me with my comments in the parentheticals:<\/p>\n