The endorsement of a celebrity or social media “influencer” can be a valuable tool for companies seeking to instantaneously advertise to the millions of individuals who follow a popular influencer. Companies pay very handsomely for these endorsements, with some celebrities earning over $1 Million per post. However, this explosion in paid endorsements and influencer marketing has led to the Federal Trade Commission (“FTC”) cracking down on misleading ads where influencers fail to disclose their relationship with the promoted companies. Given the potential for large fines and negative press, companies must be aware of their obligations to ensure that their influencer marketing campaigns comply with applicable law.
How Should Companies Protect Themselves?[Read More]