#IFBC18: FTC Disclosures (Yes, they matter!)

If you’re a blogger who wants to work with brands, you should know the rules of the road–food writer and blogger, Stacy Brooks, will lead this session covering everything you need to know to be in compliance with the FTC’s disclosure rules for bloggers and influencers.

Transcript

2. FTC Disclosures (Yes, they matter!) Stacy Brooks tangledupinfood.com
3. Background • Blogging since 2011: Tangled Up In Food • Brand and destination partnerships including Stonyfield Organic, Barlean’s, and Travel Manitoba • Former intellectual property paralegal
4. Who’s the FTC, and why do they care about my blog? FTC = Federal Trade Commission Mission: to protect consumers and maintain competition
5. How does the FTC do that? • By prohibiting “deceptive practices” that deceive a “significant minority” of consumers • Law giving this power to the FTC to protect consumers has been in place since 1938 • Guidelines are periodically updated
6. How does this affect bloggers? • FTC has rules to ensure statements to consumers are truthful ◦ Applies to all media: “traditional” (newspapers, radio, TV) and “new” (blogs, social media, podcasts, YouTube)
7. • FTC rules apply to sponsored posts, branded content, photos of products provided for free—anything you’re publishing to promote a brand or product • Endorsement = making claim about product • Endorser = person making claim It’s not just about traditional advertising...
8. FTC Requirements: Truth-in-advertising principle 1. Must be honest opinion of endorser 2. Can’t make claims product’s maker couldn’t legally make Example: claims about food, over-the-counter drugs, dietary supplements, alcohol, and tobacco 3. Need to disclose relationship
9. Why all the hubbub? • Ambiguity about relationship between blogger/influencer and brand • FTC first addressed blogger and brand relationships in 2009 guidelines
10. Is the FTC monitoring my blog/social media? • Probably not • Will investigate violations brought to their attention • Usually focus enforcement actions on brands and their ad agencies/PR firms
11. But if the FTC isn’t reading my blog, why does it matter? • Right thing to do ◦ It’s the law ◦ Even playing field • Consequences for brand/PR firm • Contracts often require disclosure ◦ Often don’t explain how ◦ Up to you to be informed and in compliance
12. Most important reasons to disclose: • Respect for your readers • Your readers’ respect for you
13. When do I have to disclose? • Receive free product or perks • Part of marketing program with free samples • Received any type of incentive ◦ Contest entry ◦ TV appearance • Each new endorsement • Includes photos or videos of product
14. How do I disclose? • No magic words • Just need to give consumer the essential information ◦ Company X gave me this product to try ◦ I was compensated for this post (don’t need to specify amount) ◦ Hotel Y hosted my stay ◦ Company Z paid my travel expenses to attend the conference
15. “Reasonable consumer standard” • Legal concept beloved by lawyers • “Average” person who has common sense, but isn’t an expert • Your mom
16. “Clear and conspicuous” • Close to claims about product • Font/color that is easy to read • Video: on screen long enough to be noticed, read, and understood • Audio: understandable pace and wording • Need to be able to see disclosure ◦ Mobile ◦ Hashtags
17. Social media disclosures • Exact wording isn’t mandated, but must provide necessary info • Good: sponsored, promotion, ad, paid ad • Bad: thank you, partner, sp • Relationship with brand must be clear
18. Snapchat/Instagram stories • Superimpose disclosure over image • Consider timing and contrast • Must be easy to read
19. Examples
20. Blog posts Text credit: Stacy Brooks
21. Instagram
22. Instagram Image credit: Stacy Brooks
23. Twitter
24. Twitter Image credit: Stacy Brooks
25. Facebook Image credit: Stacy Brooks
26. Facebook Image credit: Stacy Brooks
27. Snapchat/Instagram stories
28. How not to disclose • Single disclosure on home or about page • Disclosure only in video description • Making people click on a hyperlink
29. Affiliate links need to be disclosed too! • Clear and conspicuous standard • Need to define affiliate link
30. And the endorsement has be accurate... • Actual experience/opinion of endorser • Legal claims about product • Typical experience
31. Case Studies (Adapted from the FTC Guidelines)
32. Mike regularly purchases a particular brand of dog food, and he decides one day to purchase a new, more expensive brand made by the same manufacturer. Mike writes in his blog that the change in diet has made his dog's fur noticeably softer and shinier, and that in his opinion, the new food definitely is worth the extra money. Is this an endorsement that Mike needs to disclose?
33. Acme Skin Care is a company that participates in a blog advertising service. The service matches up companies with bloggers who will promote the companies’ products on their personal blogs. Acme Skin Care requests that Sara try a new body lotion and write a review of the product on her blog. Acme Skin Care does not make any specific claims about the lotion's ability to cure skin conditions and Sara does not ask Acme Skin Care whether there is evidence for such claims.
34. In her review Sara writes that the lotion cures eczema and recommends the product to her blog readers who suffer from this condition. Is this an endorsement that Sara needs to disclose? Are there any other issues here?
35. Maria has earned a reputation as a video game expert. She writes a blog where she posts about her gaming experiences. Readers of her blog frequently seek her opinions about video game hardware and software. As it has done in the past, the manufacturer of a newly released video game system sends Maria a free copy of the system and asks her to write about it on her blog. She tests the new gaming system and writes a favorable review. Is this an endorsement that Maria needs to disclose?
36. The bottom line… When in doubt, disclose! (where your readers can easily see it, using language your mom would understand)
37. Questions?
38. Most importantly... Respect your readers’ trust in you
39. Helpful FTC links: FAQs: https://www.ftc.gov/tips-advice/business-cen ter/guidance/ftcs-endorsement-guides-what- people-are-asking Official text and examples: https://www.ecfr.gov/cgi-bin/text-idx?SID=70 1066299822530421fece37367c91d3&mc=tr ue&node=pt16.1.255&rgn=div5
40. Online advertising: https://www.ftc.gov/system/files/documents/plai n-language/bus41-dot-com-disclosures-informa tion-about-online-advertising.pdf (examples 14-17 relate to social media, example 21 relates to blogging) FTC blog post about Instagram: https://www.ftc.gov/news-events/blogs/busines s-blog/2017/04/influencers-are-your-materialco nnection-disclosures
41. Sample letter FTC sent to influencers: https://www.ftc.gov/system/files/attac hments/press-releases/ftc-staff-remi nds-influencers-brands-clearly-disclo se-relationship/influencer_template.p df