The U.S. Federal Trade Commission (FTC) announced on Wednesday that it has issued warnings to two trade associations and 12 dieticians and online influencers regarding social media posts promoting the artificial sweetener aspartame or sugary products without proper disclosure of payment.
The FTC highlighted the requirement for online influencers to transparently disclose when they are compensated for promoting products.
In letters addressed to the American Beverage Association and the Canadian Sugar Institute, the FTC expressed concern that influencers hired by these groups to post on platforms such as Instagram and TikTok did not adequately identify their posts as advertisements.
Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, emphasized the responsibility of trade groups to ensure that influencers disclose their relationships with the products they are promoting.
Levine stated, “It’s irresponsible for any trade group to hire influencers to tout its members’ products and fail to ensure that the influencers come clean about that relationship.”
In response to the warnings, a spokesperson for the American Beverage Association asserted that the group had taken proactive steps to ensure transparency about its partnership with experts.
The spokesperson stated, “We will continue our ongoing commitment to disclose the relationship between dietitians and American Beverage, and we appreciate the FTC’s guidance on how to best ensure transparency.”
The Canadian Sugar Institute did not immediately provide a comment on the matter.
The FTC’s actions underscore the importance of transparency in influencer marketing, particularly when it comes to endorsements related to health products such as artificial sweeteners or sugary items.
The regulatory intervention serves as a reminder to both trade associations and influencers of their obligation to clearly disclose financial relationships when promoting products on social media platforms.
This development is part of the broader regulatory efforts aimed at ensuring consumer protection in the digital advertising space.
As social media continues to play a significant role in shaping consumer choices, regulators are keen on addressing potential issues related to the transparency of influencer marketing to safeguard consumers from deceptive practices.
Moving forward, it is anticipated that influencers and trade associations will be more diligent in adhering to disclosure guidelines to maintain transparency and trust in digital advertising.
The FTC’s warnings serve as a proactive measure to curb potential misinformation and undisclosed promotional activities, promoting a fair and transparent marketplace for consumers.