Content Creator Beware: The FTC Is Cracking Down On Improperly Disclosed Sponsored Posts

The Federal Trade Commission (FTC) recently issued warning letters to social media influencers regarding inadequate disclosures in their product-promoting content. This is notable because influencers often depend on sponsored posts for monetary or product compensation. Influencers typically disclose these posts as sponsored or advertisements. However, the FTC's updated guidelines impose stricter disclosure requirements. As explained below, content creators must "clearly and conspicuously" disclose all sponsored posts to avoid potential penalties of up to $50,120 per violation.

The FTC's Recent Warnings

In November 2023, the FTC sent official warnings to twelve social media influencers and two trade associations for failing to adequately disclose their connections to each other in social media posts. The American Beverage Association (AmeriBev) and the Canadian Sugar Institute had been working with influencers to create content that either endorsed aspartame as a