The Top 5 Things Influencer Marketing Agencies Need to Know About the FTC’s New Ban

The FTC’s new ban on deceptive reviews and endorsements has introduced stricter standards for influencer marketing agencies. With fines up to $43,792 per violation, agencies must ensure compliance to protect both their clients and their own operations. Here are the top five things every influencer marketing agency needs to know to navigate this new regulatory landscape.

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1. Agencies Are Liable Too

What’s Changing:

The FTC holds agencies accountable for their role in creating or facilitating deceptive endorsements. If an agency develops non-compliant campaigns, they can face penalties alongside the brand and influencer.

Why This Matters:

Agencies can no longer claim ignorance. They must actively ensure that all campaigns comply with FTC regulations.

Action Step:

• Educate your team on the FTC rules.
• Vet all influencer content before publication to ensure proper disclosures and compliance.

2. Review and Approval Processes Are Essential

What’s Changing:

Agencies must implement robust review systems to ensure influencer content aligns with FTC guidelines. This includes:

• Clear and conspicuous disclosures.
• Truthful and evidence-backed claims in endorsements.

Why This Matters:

A single oversight can result in steep fines and reputational damage for both your agency and your clients.

Action Step:

Establish a compliance checklist for all campaigns. Require influencers to submit drafts for approval, especially for sponsored posts.

3. Fake Metrics Are a Dealbreaker

What’s Changing:

Agencies can no longer turn a blind eye to influencers using fake followers, likes, or engagement metrics. Partnering with influencers who rely on fake metrics is now considered deceptive.

Why This Matters:

Your agency’s reputation and your clients’ marketing effectiveness depend on authentic partnerships. The FTC will scrutinize campaigns involving fake metrics.

Action Step:

Use verification tools to audit influencers’ engagement rates and follower authenticity before onboarding them to campaigns.

4. Incentive-Based Campaigns Must Be Transparent

What’s Changing:

If agencies design campaigns offering perks like free products or exclusive discounts to influencers, they must ensure that all incentives are disclosed.

Why This Matters:

Failure to disclose incentives can lead to penalties for all parties involved, including the agency that structured the campaign.

Action Step:

Include clear disclosure guidelines in influencer contracts and enforce compliance during campaign execution.

5. Compliance Protects Your Agency’s Future

Why It Matters:

The FTC’s rules are not just about avoiding fines—they’re about creating a more transparent marketing ecosystem. Agencies that proactively adapt will stand out as trusted partners for brands.

Action Step:

Position your agency as a compliance leader. Develop educational resources for your clients and influencers, showcasing your expertise in ethical marketing practices.

Conclusion

The FTC’s new rules demand a proactive approach from influencer marketing agencies. By ensuring compliance at every stage, agencies can protect their clients, enhance their reputation, and lead the charge in ethical influencer marketing.

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