Social media websites have received an increase in user traffic due to the Covid-19 pandemic. One tried and true way to advertise to users on social media is to get the endorsement of a celebrity or social media “influencer.” Superficially, the process is easy – businesses pay influencers to post endorsements of their goods or services across the influencers’ social media accounts. However, when done incorrectly, businesses and influencers can become the subject of investigations initiated by the Federal Trade Commission (“FTC”). Those investigations can lead to FTC lawsuits that can result in reputational harm and significant fines.
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