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FTC's Letter to Paid 'Influencers'

By C. Ryan Barber

In the digital age, the Federal Trade Commission (FTC) has been keeping tabs on the growing trend of brands hiring so-called “influencers” — athletes, celebrities and others with large followings — to promote their products on social media.

The consumer agency has taken the view that advertisement without proper disclosures can mislead consumers and has put the burden of ensuring proper disclosure on the brands. Last year, the FTC reached a settlement with Warner Bros. Home Entertainment over a lack of disclosures for paid promotions of video game Middle-Earth: Shadow of Mordor. (See, “FTC Settles with Warner over 'Paid Influencers',” in our August 2016 issue.) But it did go after the likes of the popular YouTube personality “PewDiePie” and other influencers who were paid for positive videos and social media posts about the game.

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