Instagram Adds Paid Partnership Tool For Transparency

Instagram recently unveiled a new "branded content tool" that will allow influencers who are paid to endorse consumer products to tag partnering brands with an automated "paid partnership" disclosure.

This new feature is intended to create more transparency in the Instagram community and to provide sponsors and influencers the ability to track the performance of their social media content.

Background

This new tool is being rolled out on the heels of the 90 warning letters that the Federal Trade Commission (FTC) recently sent to brands, celebrities and influencers regarding Instagram posts which failed to disclose their paid relationships, as discussed in a previous Alert, through the use of words such as "ad," "sponsor" or "paid." The FTC has provided guidance to brands and influencers on how to make a clear and conspicuous disclosure of their material connections, which some influencers feel limits their creativity or authenticity.