Entertainment Law Resources
​
  • HOME
  • LAW PRACTICE
    • Mark Litwak
    • Glenn Litwak
    • Pete Wilke
  • ARTICLES & VIDEO CLIPS
    • Video & Audio Clips
  • STORE
  • RESOURCES
  • BLOG
  • CONTACT
  • FAQ
  • SITE MAP

Federal Trade Commission Cracks Down on Social Media Bloggers

12/27/2017

1 Comment

 
​Many bloggers and social media users may be surprised to learn that truth in advertising laws apply to them just as they do to television broadcasters and magazine publishers. Endorsements must be honest and not misleading. The endorser must disclose if they have a financial interest in the product they are promoting or if they are being paid to promote it.
 
Recently, the Federal Trade Commission (FTC) for the first time went after social media influencers who did not disclose their interest in a website that they promoted to their subscribers.  Trevor Martin and Thomas Cassell are popular social media influencers in the online gaming community. They posted videos on their YouTube channels (with 3.3 million and 10 million subscribers respectively) showing them participating in an online gambling service without disclosing that each had a 42.5% ownership interest in the online gambling company, thereby violating FTC disclosure laws. The FTC’s complaint can be read here.  
 
The case was settled with a Consent Agreement that requires the parties to:
 
  • Comply with FTC disclosure guidelines, with an additional burden to properly monitor and ensure compliance by any endorsers they partner with for promotional purposes in the future;
  • Submit a compliance report in one year;
  • Keep records of activities related to the business for up to 10 years; and
  • Submit to ongoing compliance monitoring by the FTC for a period of up to 10 years.
  
The FTC is troubled with endorsements that are made on behalf of a sponsoring advertiser. For example, an endorsement by a blogger would be covered by the FTC Act if he or she was paid to mention a product. Even if not paid, if one receives free products or other benefits with the expectation that the blogger will promote a product in a  blog, the blogger is potentially violating the law.  Such practices may constitute unfair or deceptive acts affecting commerce in violation of Section 5(a) of the Federal Trade Commission Act.
 
The FTC publishes endorsement guides  to provide guidance as to the rules and laws that apply. A single disclosure on a home page may not be adequate to insulate yourself from liability if visitors would not see the disclosure when reading a review or watching a video on your site.
 
 Mark Litwak
1 Comment
thomas link
8/24/2021 06:56:35 am

Great piece of content! Thank you so much for writing as well as for sharing it. It really gave me the inspiration to come up with some new places to look for content ideas.

Reply

Your comment will be posted after it is approved.


Leave a Reply.

    Archives

    February 2023
    January 2023
    November 2022
    September 2022
    July 2022
    June 2022
    April 2022
    March 2022
    January 2022
    December 2021
    August 2021
    July 2021
    May 2021
    March 2021
    December 2020
    November 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    December 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    October 2018
    September 2018
    August 2018
    May 2018
    March 2018
    January 2018
    December 2017
    August 2017
    April 2017
    March 2017
    January 2017
    December 2016
    November 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    May 2015
    April 2015
    March 2015
    December 2014
    November 2014
    July 2014
    May 2014
    April 2014
    March 2014
    January 2014
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    March 2013
    February 2013
    December 2012
    November 2012
    October 2012
    September 2012
    August 2012
    May 2012
    April 2012
    February 2012
    December 2011
    October 2011
    September 2011
    July 2011
    June 2011
    April 2011
    February 2011
    January 2011
    December 2010
    November 2010
    October 2010
    September 2010
    July 2010
    June 2010
    May 2010
    February 2010
    December 2009
    November 2009
    October 2009
    September 2009
    July 2009
    June 2009
    January 2009

    Disclaimer: The information in this blog post (“post”) is provided for general informational purposes only and may not reflect the current law in your jurisdiction. No information contained in this post should be construed as legal advice from the individual author, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through, this Post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country or other appropriate licensing jurisdiction.
    For older posts, please visit The Litwak Blog.
    Join our Email Newsletter list
    Email Newsletter icon, E-mail Newsletter icon, Email List icon, E-mail List icon
    For Email Newsletters you can trust
Picture
Home
Law Practice
Store
Articles & Video Clips
Resources

Blog

Contact
FAQ
Site Map

LAW OFFICES OF
MARK LITWAK & ASSOCIATES

201 Santa Monica Blvd.
Suite 300
Santa Monica, California 90401
Phone: 310-859-9595
Law2@marklitwak.com


Follow us on
Join our Email Newsletter list
Email Newsletter icon, E-mail Newsletter icon, Email List icon, E-mail List icon
For Email Newsletters you can trust
Copyright  2013-2021, Mark Litwak. All Rights Reserved.│ Legal Disclaimer │ Terms of Use & Copyright    │  Privacy Policy