FTC Advertising: Strong Message for Social Media Ads After Lord & Taylor settlement
  • Contest Factory
  • June 8, 2016


FTC Advertising Warning: Heed or Pay

NEW YORK (Legal Newsline) – Companies using social media influencers or native advertising to promote their products should pay attention to the settlement between Lord & Taylor and the Federal Trade Commission, New York attorney Adam Z. Solomon says.  FTC Advertising warnings are coming fast and sternly.

“In bringing the action against a large and recognizable company such as Lord & Taylor, the FTC sent a strong message to other advertisers,” said Solomon, a partner at Michelman & Robinson.

“This case should not just be a wakeup call to the fashion industry.”

Lord & Taylor recently settled with the FTC over charges that the national retailer didn’t properly disclose that several ads for its Design Lab clothing campaign were paid promotions.

According to the claims, Lord & Taylor paid for a native ad in Nylon, a pop culture and fashion publication, which is meant to look like editorial content and is supposed to note that it’s an advertisement, often titles advertorial.   The retailer also paid 50 social media users, called fashion influencers, to upload photos on Instagram promoting a dress they received for free. The FTC Advertising policies require this to be called out with Advertorial or Sponsorship.

The influencers allegedly weren’t told to inform their followers that they were paid for the post… Again, FTC Advertising News Flash: You must disclose compensation for any media.  It’s the law.

Credit: Legal News Line


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