The commission is also inviting comments on whether discounted and free products influence reviews and if they require disclosure.
As per a statement released by Federal Trade Commission’s (FTC) Rohit Chopra, undisclosed influencer marketing posts must trigger financial penalties. In a 5-0 vote, the FTC has approved a Federal register which calls for public comments on questions about whether The Endorsement Guides for advertising need to be updated.
The statement adds that the FTC will need to determine whether new requirements for social media platforms and advertisers need to be created. It would also determine if civil penalty liabilities need activation.
Chopra has urged FTC to codify elements of current endorsement guides into formal rules. This, he says, ensures that “violators can be liable for civil penalties under Section 5(m)(1)(A) and liable for damages under Section 19.”
[2 minute read]