Feds Crack Down On Misleading Social Media Celebrity Product Endorsements

The Federal Trade Commission has warned companies that use celebrity endorsers on social media – notably Instagram – must disclose that the endorsements, which include photos of celebrities displaying products, are paid and not voluntary. The agency sent 90 letters to brand holders and endorsers allegedly in violation of federal law. Companies notified included dietary supplement firms, personal care brands, food companies and consumer goods companies like Adidas and Puma. Endorsers included Heidi Klum, Naomi Campbell, Allen Iverson, Jennifer Lopez, and former NFLer James Harrison. FTC guidelines say a company that has a “business relationship” with a celebrity endorser should “clearly and conspicuously” disclose that relationship in the endorsement ad. [Image Credit: © FTC.gov]