Influencing the FTC to Update Disclosure Rules For the Social Media Era

By
Elizabeth A. Casale
40 Mitchell Hamline L.J. of Pub. Pol’y and Prac. 1 (2019)

Social media has revolutionized the way that we interact. In a Pew Research Center study, sixty-nine percent of respondents indicated that they use social media. This number stands in contrast to usage ten years ago, when only twenty-one percent of U.S. adults used social media. “Over a mere few years, what started as a means for regular people to connect with friends, family and coworkers has become an advertiser’s dream.” As social media has changed the ways we communicate, advertising has correspondingly changed as well. One such change to advertising is the rise of influencer marketing.

In Part II, this article will explore the history of influencer marketing and its prevalence on the internet and social media, particularly on the social media platform Instagram. The Federal Trade Commission (FTC) has the authority to take action against unfair and deceptive advertising practices, and thus is a source of oversight for influencer marketing practices, as will be discussed herein. Part III will discuss the sources of FTC oversight power, and how the FTC has attempted to provide guidelines for influencers. These guidelines impact influencers and the brands they promote, and thus compliance obligations for influencers, advertisers, and businesses will be discussed in Part IV. Finally, Part V will explore ways the FTC could better clarify internet disclosure obligations for influencers, businesses, and advertisers.