Social media influencers must disclose paid posts

Travelers United is fighting the plague of unchecked social media influencers. Are they ads or legitimate editorials?

social media influencersTravel social media influencers continue to rake in large amounts of money to promote certain companies to their followers. Despite the Federal Trade Commission being very clear that influencers must let viewers know when a post is a paid advertisement, disclosure remains rare in the industry.

Travelers United has taken the lack of disclosures in social media posts as a policy issue, and we are committed to seeing transparency in the industry. Consumers should be able to make an informed travel decision based on genuine recommendations of the people they follow online. If a post or recommendation is an advertisement, this would impact the consumer’s buying decision.

Travelers United sued an influencer for failure to disclose payments and exaggeration of personal travel.

In 2022, Travelers United sued an influencer for failure to disclose that she was posting advertisements. She also made false statements about her accomplishments. The deceptive statements about personal achievements directly relate to the sales of goods. She likely did this to get more press, social media followers, and brand deals.

That case remains ongoing, but on Sept. 13, 2023, the judge stated that the case could move forward. The order says, “An influencer who misrepresents her background or omits relevant information to induce a consumer to purchase goods can be found to have misled the consumer in violation of the CPPA, particularly where, as here, the influencer’s statements about herself are inextricably linked to the promotion of her products.”

Influencers can be sued for lack of disclosure and false statements.

Join Our Membership Program TodayTravelers United is proud to have made it clear that DC’s Consumer Protection Procedures Act (CPPA) allows influencers to be sued for lack of disclosure and false statements in their posts. This is an essential precedent for revelations in social media.

To be clear, both the influencer and the company that pays the influencer to post are responsible. They must both ensure the statements are correct and compliant with the law.

If an influencer is British and lives in Bali but has his posts viewable to consumers in the United States, he is subject to the laws of the US. When an influencer gets a free stay at a hotel but does not disclose it in every social media post she makes about the hotel, she is violating the law. If there is a material connection between the subject of the advertisement (a hotel) and an influencer, it must be disclosed in every single post. This disclosure is required not just for static posts but also for disappearing stories on Instagram or Snapchat. Video on Instagram, Facebook, Snapchat, or TikTok also needs full disclosure, preferably by voice and written revelation.

social media influencersA Federal Trade Commission video makes the responsibilities of influencers clear.

Travelers United urges influencers in the travel space to familiarize themselves with the requirements of advertising disclosure in the United States. The FTC has a video for influencers about the laws. Travelers United covered the requirements of exposure in a post in 2021.

Unfortunately, multiple articles have recently discussed how the FTC could do more about enforcing influencer guidelines. But the FTC is severely understaffed, so influencers often flout the law. According to DC law, nonprofits can act “on behalf of the general public.” That is precisely what Travelers United intends to do regarding travel influencers ignoring disclosure requirements moving forward.

Irritated by hotel resort fees?Influencers, follow the law and disclose when making a paid social media post, or Travelers United will see you in court.


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