🚨 BREAKING NEWS: On August 14th, the FTC Passed a Rule Officially Ending Pay-For-Post Influencer Marketing As We Know It 🚨

TLDR: On August 14, 2024, the FTC released a landmark rule that fundamentally changes influencer marketing. If your brand pays for influencer posts, you’re at risk. Each paid post is now a compliance violation risk, with penalties up to $43,792 per violation. NO BRAND IS SAFE.

THE 4 KEY CHANGES THAT CHANGE EVERYTHING FOR INFLUENCER MARKETING

The FTC’s rule is designed to combat deceptive marketing practices, with a particular focus on fake reviews and misleading endorsements. Here’s how it impacts the influencer marketing model:

1. ALL PAID INFLUENCER POSTS UNDER SCRUTINY—DISCLOSURES WON’T PROTECT YOU

The FTC’s rule is designed to combat deceptive marketing practices, with a particular focus on fake reviews and misleading endorsements. Here’s how it impacts the influencer marketing model:

2. CONDITIONAL INCENTIVES BANNED—NO PAYMENTS FOR ANY REVIEW–POSITIVE, NEGATIVE, OR ANY SENTIMENT IN BETWEEN.

Brands can no longer offer payment or incentives for any reviews, regardless of whether they are positive or negative. Any hint of conditional compensation can trigger severe penalties, up to $43,792 per violation.

3. SEVERE PENALTIES OF UP TO $43,792 PER VIOLATION—NO BRAND IS SAFE

The FTC’s rule allows the agency to seek civil penalties of up to $43,792 per violation. For brands that continue to use traditional influencer marketing practices, the financial risks are substantial. This is not just a slap on the wrist; penalties can add up quickly, especially for large-scale campaigns.

4. INFLUENCERS AND CELEBRITIES ON THE HOOK—FAILURE TO DISCLOSE WILL COST THEM

Social media influencers and celebrities must ensure their endorsements are genuine and fully disclose any material connections to the brands they promote. Failure to comply can lead to significant penalties, impacting their reputation and financial standing.

The Bottom Line: A New Era for Influencer Marketing

This new FTC rule marks a turning point for influencer marketing. The days of straightforward pay-for-post campaigns are over. The safest path forward: stop paying for posts.