Now that election week buzz has settled, it’s time to shift focus to an urgent issue flying under the radar for many brands and influencer marketers—but one that demands immediate attention.

In August, the Federal Trade Commission (FTC) introduced new rules targeting deceptive advertising practices, and as of mid-last month, these guidelines are in full force.

But here’s the catch: these changes mean more than you might think.

From fake reviews and undisclosed influencer partnerships to misleading endorsements, the FTC’s new rules bring stricter oversight to all influencer content—adding fresh layers of risk and complexity to your partnerships and campaigns.

With penalties reaching up to $43,792 per violation, you and your team can’t afford to miss a single detail.

The FTC's crackdown on influencer marketing: What you need to know

The FTC’s new regulations are a big deal for brands and influencers, directly impacting campaigns and partnerships. They raise the bar for transparency, making influencer marketing more authentic, trustworthy, and consumer-friendly.

New disclosure standards

What it is: The FTC is cracking down on vague or hidden disclosures in influencer marketing. It emphasizes that disclosures must be “clear, conspicuous, and understandable” to the average consumer, avoiding placement in long hashtag lists or buried within captions. The guidelines require disclosures to be easily noticeable, positioned at the beginning of captions, before any links, or as a standalone, prominent statement.

Who it impacts: Both brands and influencers.

Brands: Must ensure their influencer partners understand and follow the stricter disclosure requirements. This likely involves providing clear instructions, offering both positive and negative examples, and actively monitoring influencer content to ensure compliance.

Influencers: Must clearly and conspicuously disclose any material connection with a brand when promoting their products. Simple hashtags like #ad or #sponsored are no longer sufficient. Influencers must be explicit about the sponsorship or if they received a product for free, using unambiguous language. For example, “Thank you to Brand X for sending me this product!” or “I’m partnering with Brand Y on this campaign.”

Ban on conditional incentives

What it is: The FTC prohibits conditional incentives specifically tied to positive endorsements, specific sentiments, or any form of conditional compensation which undermines the authenticity of reviews. Compensating influencers solely on the condition that they provide favorable feedback or any specific sentiment is considered deceptive.

Who it impacts: Primarily brands (but also influencers)

Brands: must avoid using contract language that directly or indirectly requires positive feedback or specific sentiments as a condition for payment or incentives. Brands are responsible for setting transparent, ethical terms and can be held liable if they attempt to influence the authenticity of influencer endorsements through conditional incentives. Ultimately, brands must foster an environment of transparency, allowing influencers to share honest opinions based on their true experience—whether positive, neutral, or negative.

Influencers: Although influencers should be aware of these regulations, the primary impact remains on brands. Influencers must disclose material connections and provide honest reviews, but they’re less likely to be penalized for accepting well-meaning agreements. However, if they knowingly agree to conditional terms that require positive-only feedback, they could face scrutiny if it becomes evident that the arrangement breaches FTC rules.

No fake engagement

What it is: The FTC prohibits tactics that artificially inflate an influencer’s perceived reach or engagement. This includes buying fake followers and likes, using bots to generate comments and views, or employing other methods that misrepresent genuine interaction with an influencer’s content.

Who it impacts: Both brands and influencers.

Brands: cannot engage in or encourage practices that artificially inflate engagement metrics. They must vet influencers carefully to ensure they have authentic followings and genuine engagement. Using third-party services to boost engagement is also prohibited.

Influencers: cannot use tactics to inflate their social media metrics falsely. This includes purchasing followers and likes or using bots to generate engagement.

Transparent insider reviews

What it is: Insider reviews are reviews or endorsements provided by individuals with a material connection to a brand—this includes employees, executives, influencers with a financial or personal relationship with the brand, or even family members of these individuals. The FTC requires that these insiders clearly and conspicuously disclose their relationship to the brand in any review or endorsement. This aligns with the broader new disclosure standards, which apply to all influencer marketing.

Who it impacts: Both brands and individuals with any material connection to the brand who publish reviews.

Brands: Must ensure that all employees, executives, and other insiders, including influencers with financial or personal relationships with the brand, understand and comply with the disclosure requirements for insider reviews. This includes ensuring that the disclosure of their connection is prominent and easily understood by consumers.

Insiders (including influencers): Must clearly and conspicuously disclose their relationship with the brand in every relevant review or endorsement. The disclosure must be unambiguous and easily noticeable.

5 steps to take right now to avoid fines and ensure ongoing compliance

The new FTC regulations mark a shift toward increased authenticity, transparency, and accountability in influencer marketing. With these rules now in effect, you, your brand and influencer partners are under greater scrutiny. It’s essential to act quickly to ensure compliance and avoid potential risks.

1. Educate key stakeholders

• Gather your team: Bring together your influencer marketing, legal, marketing, PR, and social media teams to review the new guidelines.

• Educate executives: Provide concise updates to key decision-makers about the regulations and risks of non-compliance.

• Secure buy-in: Emphasize the importance of compliance for brand protection and avoiding penalties.

2. Audit your practices

• Review influencer contracts: Ensure contracts include FTC-compliant disclosure and endorsement clauses.

• Evaluate compensation structures: Check that your payment models don’t incentivize fake engagement or conditional incentives.

• Document everything: Keep records of your review process, including contract changes and campaign strategies.

• Revise contracts: Update agreements to reflect FTC disclosure requirements and guidelines.

3. Train influencers

• Develop guidelines: Create clear FTC compliance instructions, covering disclosures and authentic endorsements.

• Provide examples: Share practical examples of compliant and non-compliant content.

• Offer ongoing support: Conduct regular training and webinars to keep influencers informed of any updates.

4. Monitor, enforce, and review

• Schedule regular audits: Set a recurring audit schedule for influencer partnerships and contracts.

• Monitor campaigns: Track influencer content at the start of campaigns to ensure compliance.

• Standardize enforcement workflows: Develop clear processes for identifying and addressing non-compliance.

• Streamline enforcement: Create an escalation process to address violations swiftly, with clear consequences.

• Document compliance efforts: Keep detailed records of audits, enforcement actions, and process updates.

5. Foster ongoing compliance

• Embed continuous learning: Keep your team and influencers updated with proactive education on FTC guidelines.

• Develop a feedback system: Allow influencers to report challenges and refine processes based on feedback.

• Encourage accountability: Hold teams and influencers accountable, celebrating successes and addressing issues promptly.

That’s all for this week!

Before I go, a quick disclaimer: The information provided here is for general guidance only and should not be considered legal advice. Please consult a qualified legal professional for advice tailored to your specific situation.

Want to learn more?

• Dive deeper: Visit the FTC website for comprehensive guidance and the latest updates on influencer marketing regulations.

• Connect and collaborate: Join the Creator Marketing Community on LinkedIn. Share insights, ask questions, and learn how other influencer marketers are navigating these new compliance requirements.

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Industry insights

Are creators and influencers effective at driving sales on social media? According to a new EMARKETER survey, absolutely!

A recent EMARKETER survey reveals that 50% of US social shoppers have been inspired to make a purchase because of creator or influencer content, making it the most influential type of content among consumers. This number climbs to over 60% when excluding Facebook shoppers, with Snapchat users leading the way as the most likely to buy after engaging with creator or influencer posts. Read more here

Are influencers losing credibility with back-to-back brand collabs?

Experts caution that back-to-back endorsements may be eroding influencers’ authenticity. As a result, brands are becoming more selective with partnerships to ensure they maintain credibility and trust with audiences. Read more here

How Maybelline is leveraging Pinterest to reach Gen Z makeup fans

With over 522 million monthly active users, Pinterest has become a favorite platform among Gen Z, capturing the attention of brands eager to engage this audience. Maybelline is among the brands tapping into Pinterest’s new advertising tools to connect with Gen Z makeup enthusiasts, creating a valuable opportunity to reach this demographic. Read more here 

Over 90% of brands plan to boost creator budgets in 2025

As we approach 2025, creator marketing remains a crucial focus for brands. Recent research from LTK and Northwestern University’s Retail Analytics Council reveals that 93% of companies intend to boost their creator budgets or enhance the role of creators in their marketing strategies. Read more here

Forbes Top Creators 2024 list

The creator economy is rapidly expanding and maturing. The 50 honorees on the 2024 Forbes Top Creator list are at the forefront of this growth, which now boasts nearly 50 million participants. This year, the creators featured have collectively earned almost $720 million over the past 12 months. Read more here

Join an exclusive community of leading influencer marketers

Our newsletter keeps you informed, and our community keeps you connected. I highly encourage you to join our professional network on LinkedIn.

Join the Creator Marketing Community 

Connect with influencer marketing leaders and professionals from top brands like Nike, Kate Spade, Klarna, Niantic, Red Bull, and Calvin Klein to network and get insider access to exciting deals, events, and job opportunities.

Interesting reads

How brands can navigate the murky world of online streaming [LINK]

TikTok Shop Insiders Founder reveals why TikTok Shop could eclipse Amazon’s e-commerce model [LINK]

The professional platform shift: Why 3 in 5 creators are betting big on LinkedIn in 2025 [LINK]

Meet the de-influencers, who've built a brand on buying nothing [LINK]

Free Creator Economy Resource List

Looking for the latest news and insights on the creator economy? We’ve curated a selection of top industry resources — all continuously updated— to help marketers navigate the creator economy more effectively. Don’t miss our global marketing events calendar! Check it out here 👇