FTC Commissioner Proposes Making Endorsement Guides Into Rules, Seeking Stiffer Penalties
At least one FTC commissioner seems convinced that the agency’s Enforcement Guides are ripe for an update to address unscrupulous influencer marketing practices. Democrat Rohit Chopra proposes their codification into formal rules that would make violators liable for civil penalties and damages.
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Adam Waheed, an award-winning content creator with more than 17m social media followers, addresses challenges and legal risks that have escalated in recent years as influencer marketing opportunity has exploded in the US and abroad. He was joined at NAD 2021 by his manager, Leanne Perice of Made By All, and Andrew Borsen, partner at Borsen Law, LLC.
US FTC commissioners Rohit Chopra and Rebecca Slaughter maintain that the agency’s no-money, no-fault settlement with Sunday Riley Skincare, now finalized, sends a message of FTC permissiveness regarding fake online reviews that artificially boost brands’ standing and product sales.
Non-monetary settlements are more effective than litigation at changing consumer product companies’ advertising practices, says FTC Commissioner Christine Wilson. “We see non-monetary settlements curtail behavior and require sometimes fundamental changes in the way companies do business.”