Last week, a first-of-its-kind case was filed against two social media “influencers” by the Federal Trade Commission, who additionally sent notices to 21 more individuals for potential violations of FTC standards.
The FTC says that the two influencers were found to be in violation for endorsing an online gaming service which they did not disclose to be theirs. Maureen Ohlhausen, the FTC’s acting chairman, said that their move should send a message to other influencers that things like these should be disclosed clearly so that the public can make informed buying decisions.
Experts however, say that this guideline would be difficult to enforce. A study done earlier this year has already revealed that almost 40% of media organizations fail to comply with the FTC’s ad labeling and disclosure standards.