FTC Cracks Down on Non-disclousre by Influencers on Social Media Discussing Nutrition Claims

Influencers, appearing on popular social media sites such as Instagram and TikTok. have become a important source of information for too many Americans (unfortunately).  FTC is beginning to crack down on paid endorsements where disclosures are not made, in this case, where industry associations paid for endorsements by influencers where disclosure of that payment was not made known by those influencers.

“It’s irresponsible for any trade group to hire influencers to tout its members’ products and fail to ensure that the influencers come clean about that relationship,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “That’s certainly true for health and safety claims about sugar and aspartame, especially when made by registered dieticians and others upon whom people rely for advice about what to eat and drink.”

https://www.ftc.gov/news-events/news/press-releases/2023/11/ftc-warns-two-trade-associations-dozen-influencers-about-social-media-posts-promoting-consumption
FTC Warns Two Trade Associations and a Dozen Influencers About Social Media Posts Promoting Consumption of Aspartame or Sugar
Letters say influencers failed to adequately disclose that they were paid by industry
November 15, 2023

Federal Trade Commission staff have sent warning letters to two trade associations and 12 registered dieticians and other online health influencers warning them about the lack of adequate disclosures in their Instagram and TikTok posts promoting the safety of the artificial sweetener aspartame or the consumption of sugar-containing products.

The letters to the trade groups, the American Beverage Association (AmeriBev) and The Canadian Sugar Institute, express concerns that the organizations may have violated the FTC Act by failing to adequately disclose that the influencers were apparently hired to promote the safety of aspartame or the consumption of sugar-containing products, respectively. This action follows FTC’s recent revision of the Commission’s Guides for Endorsements and Testimonials, and is part of the agency’s continued monitoring of influencer marketing.

“It’s irresponsible for any trade group to hire influencers to tout its members’ products and fail to ensure that the influencers come clean about that relationship,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “That’s certainly true for health and safety claims about sugar and aspartame, especially when made by registered dieticians and others upon whom people rely for advice about what to eat and drink.”

The letter to AmeriBev detail concerns about posts on Instagram and TikTok by Valerie Agyeman, Nichole Andrews, Leslie Bonci, Keri Gans, Stephanie Grasso, Cara Harbstreet, Andrea Miller, Idrees Mughal, Adam Pecoraro, and Mary Ellen Phipps, each of whom also received an individual warning letter.

The letter to The Canadian Sugar Institute expresses concerns about Instagram posts by Jenn Messina and Lindsay Pleskot, each of whom also received an individual warning letter.

As discussed in the Commission’s Guides for Endorsements and Testimonials, paid endorsements should clearly and conspicuously disclose any unexpected material connections to ensure that consumers have the information they need to make informed purchasing decisions.

Each of the warning letters identified what appeared to be paid posts that either did not disclose a material connection, or that contained disclosures that may be inadequate. Each letter explained staff’s concerns regarding particular disclosures, including inconspicuous placement, ambiguous language, or the failure to clearly identify the sponsor of the posts.

Each letter also included the FTC’s notice of penalty offenses concerning misleading endorsements and noted that the recipient could face civil penalties of up to $50,120 per violation for future failures to disclose unexpected material connections. Finally, each letter asked the recipient to contact agency staff within 15 days and detail any actions taken or that will be taken to address staff’s concerns.

The primary staff attorney on this matter is Cassandra Rasmussen in the FTC’s Bureau of Consumer Protection.

The Federal Trade Commission works to promote competition and protect and educate consumers. Learn more about consumer topics at consumer.ftc.gov, or report fraud, scams, and bad business practices at ReportFraud.ftc.gov. Follow the FTC on social media, read consumer alerts and the business blog, and sign up to get the latest FTC news and alerts.