How can you comply with FTC guidelines for influencer marketing in retail?

1 Why disclosure matters

Disclosure is not only a legal requirement, but also a way to build trust and credibility with your customers. Consumers have the right to know when someone is promoting a product or service because they have a financial or personal connection to it. This helps them make informed decisions and avoid being misled by deceptive or unfair practices. If you fail to disclose your influencer partnerships, you risk facing FTC enforcement actions, fines, lawsuits, and reputational damage.

2 How to disclose properly

The FTC has provided some general principles and examples on how to disclose your influencer relationships in a clear and conspicuous way. For instance, use simple language that your audience can comprehend, make sure the disclosure is visible on all devices and platforms, and repeat the disclosure as often as needed. Additionally, be sure to be honest and accurate about your experience and opinion; don't make false or exaggerated claims that can't be proven or endorse something you haven't tried or don't like.

3 What to disclose and what not to disclose

It's not necessary to disclose every influencer relationship, however, the FTC requires disclosure when there is a material connection between you and the brand. This could be money, free products, discounts, gifts, or personal or family ties. For example, if you receive a free product or service from a brand in exchange for a review or mention, you need to disclose this. Likewise, if you get paid by a brand to create or share content about their products or services, you need to disclose this. Furthermore, if you have a discount code or an affiliate link that gives you a commission or benefit when someone uses it, disclosure is necessary. Additionally, if you have a personal or family relationship with someone who works for or owns a brand that you promote, disclosure is necessary. On the other hand, if you buy a product or service with your own money and share your honest opinion about it without any incentive from the brand, disclosure is not required. Similarly, if you mention a brand or product that you like without any expectation from them, disclosure is not necessary.

4 How to monitor and manage your influencers

As a marketer, it is your responsibility to ensure that your influencers comply with FTC guidelines and your own policies. You cannot simply trust them to do the right thing; you must monitor and manage your influencer campaigns and take corrective measures if necessary. To do this, you should communicate your expectations and requirements clearly and contractually, provide influencers with examples and best practices on how to use disclosure language and placement, review and approve their content before they post it, and track and measure their performance and compliance. Additionally, you should give feedback to help them improve their disclosures, check if their disclosures are clear and conspicuous, make sure their claims are honest and accurate, identify any issues or violations, and address them promptly.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?