The Top 5 Things Influencers Need to Know About the FTC’s New Ban

The FTC’s new ban on deceptive reviews and endorsements has changed the game for influencers. With strict rules and hefty fines of $43,792 per violation, influencers must prioritize transparency and compliance. Here are the five most important things influencers need to know to avoid penalties and maintain trust with their audience.

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1. Clear Disclosures Are Mandatory

What’s Required:

Influencers must clearly disclose any material connection to the brand they’re promoting, such as paid partnerships, gifted products, or affiliate links. The disclosure must be:

• Clear: No vague terms like “Thanks to [Brand].”
• Conspicuous: Visible upfront, not buried in captions or hidden hashtags.

Why This Matters:

The FTC treats misleading or missing disclosures as deceptive practices. This includes failure to disclose brand relationships in videos, captions, or live streams.

Action Step:

Use straightforward terms like “#ad,” “#Sponsored,” or “Paid Partnership with [Brand]” at the start of your content.

2. You’re Responsible for What You Post

What’s Required:

As an influencer, you’re accountable for ensuring that the claims in your posts are truthful and not misleading. Even if a brand provides the talking points, you must verify their accuracy.

Why This Matters:

Posting false or exaggerated claims about a product could result in fines for both you and the brand.

• Example: Claiming a skincare product “erases wrinkles” without evidence could violate FTC rules.

Action Step:

Ask brands for supporting evidence when promoting specific claims, and avoid endorsing products you haven’t personally tried.

3. Fake Engagement is Illegal

What’s Prohibited:

Buying fake followers, likes, or engagement to boost your social media presence is now banned. Misrepresenting your influence can harm consumers and mislead brands.

Why This Matters:

Fake metrics create an illusion of reach and trustworthiness, which the FTC views as deceptive. Violators risk penalties and loss of credibility.

Action Step:

Focus on growing your audience organically. Brands value authentic engagement over inflated numbers.

4. Incentives Must Be Disclosed

What’s Required:

Any perks you receive for endorsements—free products, trips, discounts—must be disclosed, even if there’s no direct payment involved.

Why This Matters:

The FTC considers undisclosed incentives a deceptive practice. For example, failing to mention that a product was gifted could mislead your audience.

Action Step:

Always mention the nature of the incentive. Phrases like “Gifted by [Brand]” or “Received this product for free to try” keep your content compliant.

5. Transparency Builds Trust

Why It Matters:

Your audience’s trust is your most valuable asset as an influencer. The FTC’s rules aren’t just about avoiding fines—they’re about fostering honest relationships with your followers and the brands you partner with.

Action Step:

Make transparency a habit. Be upfront about partnerships, avoid promoting products you don’t believe in, and engage authentically with your audience.

Conclusion

The FTC’s new rules represent a shift toward transparency and accountability in influencer marketing. By following these guidelines, influencers can avoid penalties, protect their reputation, and build stronger connections with both their audience and brand partners.

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