Increasingly, companies are turning to the internet and social media platforms to advertise their products, often by using native advertising or by providing incentives such as payments or free products to social media “influencers” (Instagrammers, Pinners, Bloggers and Vloggers, to name a few) in exchange for an endorsement.

As we have previously discussed, the FTC has issued Endorsement Guides that provide guidance on appropriate advertising on social media. The FTC has stated that advertising on social media platforms is subject to the same consumer protection laws that prohibit deceptive advertising and that advertising claims must be accompanied by “clear and conspicuous” disclosures.  For example, the FTC has stated that endorsements from social media influencers constitute advertisements that require a disclosure of the connection between the endorser and the advertiser company. If a necessary disclosure is not made or is insufficiently clear and conspicuous, companies may face enforcement action from the FTC.