CollectionsApr 26, 2024
Piece of the Week: Jacquie Aiche’s Starry Galaxy NecklaceThe necklace is featured in the brand’s “Rebel Heart” campaign starring Adam Levine and Behati Prinsloo.
TechnologyJun 29, 2017
Consumer Group Asks FTC to Enforce Influencer Disclosure
Public Citizen sent a letter to the FTC asking them to take action against the influencers who are still not disclosing sponsored posts on Instagram.
Washington, D.C.--It appears the letters the Federal Trade Commission recently sent to influencers warning them about sponsored internet posts didn’t help, and one consumer advocacy group wants the commission to take action.
In April, the FTC sent letters to more than 90 influencers and advertisers, reminding them to disclose any relationships they might have with brands when they’re promoting them on social media.
It marked the first time that the commission went after individuals--rather than entire companies or brands--and came as the number of celebrities and influencers getting into the gray area of sponsored posts continues to increase.
But, it appears that not many of the letter recipients are listening.
An investigation by Public Citizen’s Commercial Alert into the Instagram accounts of the 46 influencers who received the letter found that only one accurately and consistently complied.
From May 1 to June 12, Public Citizen tracked the influencers’ activities, noting when they posted sponsored content and whether or not it followed FTC guidelines. Of the 412 ads posted by the influencers during that period, 327--or 79 percent--didn’t comply with FTC standards.
“Our investigation indicates that the FTC’s reminder letters have been ineffective and enforcement action is desperately needed to protect consumers.” -- Public Citizen’s Kristen StraderThe number of undisclosed posts in that period reached as many as 35 for one influencer.
Because of the group’s findings, Public Citizen has sent a letter to the FTC asking it to take affirmative enforcement action against the influencers and advertisers that consistently post undisclosed paid product endorsements on Instagram.
“Without consequences, influencers and advertisers have no incentive to follow FTC policy and be honest with consumers,” said Commercial Alert Campaign Coordinator Kristen Strader. “Our investigation indicates that the FTC’s reminder letters have been ineffective and enforcement action is desperately needed to protect consumers.”
After describing its findings and talking about how these influencers continue to mislead consumers, the letter goes on to sum up the FTC’s guidelines and the actions taken in the spring with the letters.
Then, Public Citizen offers “evidence of serial non-compliance,” describing its investigation and results, including a number of examples of undisclosed sponsored posts from the 46 influencers.
Below is one example the group uses, an Instagram post from musician and businessman Akon in which he tagged watch brand Ratel Geneve but did not make clear the relationship between the two, even though he’s pictured and listed
Editors' Picks
Sponsored by
as a “friend of the brand” on the Ratel Geneve website.
Ultimately, the group asked the FTC to “bring enforcement actions and seek penalties” for sponsored content that isn’t disclosed, especially when it’s from repeat offenders.
Additionally, Public Citizen is asking for the FTC to work with Instagram to create a system that makes it easy for the influencers to denote the sponsored status of a post within its guidelines.
It’s worth noting that Instagram recently launched a “Paid partnership with…” format for sponsored posts, but Public Citizen said that even this new tool already needs an overhaul in order to make it clearer.
Public Citizen did not respond to an email from National Jeweler asking if it had received a response from the FTC.
The FTC has not yet commented publicly on the letter.
The full text of the letter can be found on Citizen.org.
Smile!!! Life is beautiful ⯑⯑⯑⯑
A post shared by Akon Official (@akon) on May 19, 2017 at 1:01pm PDT
Ultimately, the group asked the FTC to “bring enforcement actions and seek penalties” for sponsored content that isn’t disclosed, especially when it’s from repeat offenders.
Additionally, Public Citizen is asking for the FTC to work with Instagram to create a system that makes it easy for the influencers to denote the sponsored status of a post within its guidelines.
It’s worth noting that Instagram recently launched a “Paid partnership with…” format for sponsored posts, but Public Citizen said that even this new tool already needs an overhaul in order to make it clearer.
Public Citizen did not respond to an email from National Jeweler asking if it had received a response from the FTC.
The FTC has not yet commented publicly on the letter.
The full text of the letter can be found on Citizen.org.
More on Technology
The Latest
Events & AwardsApr 26, 2024
AGS Conclave and GIA Symposium Are ConvergingThe two organizations will host a joint event, “Converge,” in September 2025.
SourcingApr 26, 2024
Anglo American Reportedly Shopping De Beers as BHP Eyes Anglo Big changes appear to be on the horizon for the diamond miner and its parent company, Anglo American.
Brought to you by
The Blueprint for Success in Scalable, Personalized Jewelry RetailWith Ho Brothers, you can unlock your brand's true potential and offer customers the personalized jewelry experiences they desire.
Events & AwardsApr 25, 2024
Alexis Padis Takes Over as AGS Board President Padis succeeds Lisa Bridge, marking the first time the organization has had two women board presidents in a row.
Weekly QuizApr 26, 2024
This Week’s QuizTest your jewelry news knowledge by answering these seven questions.
EditorsApr 25, 2024
5 Tips for Creating Fans from the Top (Savannah) Banana Jesse Cole, founder of Fans First Entertainment, shared the “five Es” of building a fan base during his AGS Conclave keynote.
WatchesApr 25, 2024
Audemars Piguet and John Mayer Partner on Limited Edition WatchThe Royal Oak Perpetual Calendar "John Mayer" was celebrated at a star-studded party in LA last week.
Brought to you by
How Jewelers of America Represents Your BusinessFor over 30 years, JA has advocated for the industry, fought against harmful legislation and backed measures that help jewelry businesses.
SourcingApr 25, 2024
De Beers Lowers Production Guidance for 2024The announcement came as the company reported a 23 percent drop in production in Q1.
MajorsApr 25, 2024
Detroit Lions’ QB Jared Goff Keeps Going to JaredThe three-time Pro Bowler continues to partner with the retailer, donating to a Detroit nonprofit and giving watches to fans.
CrimeApr 24, 2024
Jewelry Crime Declines Significantly, But Dollar Losses Remain High A double-digit drop in the number of in-store crimes was offset by a jump in off-premises attacks, JSA’s 2023 crime report shows.
CollectionsApr 24, 2024
Pippa Small Announces ‘Venus’ CollectionInspired by the Roman goddess of love, the designer looked to the sea for her new collection.
FinancialsApr 24, 2024
Kering’s Jewelry Brands a Bright Spot in Tough Q1The luxury titan posted declining sales, weighed down by Gucci’s poor performance.
Events & AwardsApr 24, 2024
JCK Industry Fund Announces 2024 Grant RecipientsThe selected nine organizations have outlined their plans for the funds.
SourcingApr 24, 2024
Rio Tinto’s Q1 Production Drops Amid Pause to Honor Lost Colleagues The mining company’s Diavik Diamond Mine lost four employees in a plane crash in January.
WatchesApr 24, 2024
These Are Rolex’s New Watches for 2024 The crown introduced a dozen timepieces in Geneva, including a heavy metal version of its deep-sea divers’ watch.
ColumnistsApr 23, 2024
The Smart Lab: Advanced Email Marketing Strategies for Mother’s DayEmmanuel Raheb recommends digging into demographic data, customizing your store’s communications, and retargeting ahead of May 12.
IndependentsApr 23, 2024
Hannoush Jewelers Opens New Store in New York Located in the town of Queensbury, it features a dedicated bridal section and a Gabriel & Co. store-in-store.
SourcingApr 23, 2024
Lucapa Sells 3 Diamonds for $10.5M in First Lulo Tender of 2024A 203-carat diamond from the alluvial mine in Angola achieved the highest price.
GradingApr 23, 2024
GIA Has a New Book About William RuserRuser was known for his figural jewelry with freshwater pearls and for his celebrity clientele.
CollectionsApr 22, 2024
Jacquie Aiche’s New Campaign Stars Adam Levine, Behati PrinslooThe “Rebel Heart” campaign embodies rebellion, romance, and sensuality, the brand said.
EditorsApr 22, 2024
The 22 Best Quotes from AGS Conclave 2024 Editor-in-Chief Michelle Graff shares the standout moments from the education sessions she attended in Austin last week.
SourcingApr 22, 2024
Virtual Diamond Boutique Rebrands as ‘VDB’The overhaul includes a new logo and enhanced digital marketplace.
MajorsApr 22, 2024
Signet Raises Nearly $9M for St. Jude Children’s Research HospitalThe money will go toward supporting ongoing research and aftercare programs for childhood cancer survivors.
CollectionsApr 19, 2024
Piece of the Week: Retrouvaí’s Treasure NecklaceA new addition to the “Heirloom” collection, this one-of-a-kind piece features 32 custom-cut gemstones.
CrimeApr 19, 2024
Grand Jury to Hear Case Against Jeweler Charged in Fatal Shove Following IJO ShowLast month in Dallas, David Walton pushed another jeweler, David Ettinger, who later died.
MajorsApr 19, 2024
Unique Designs Acquires China PearlThe move will allow the manufacturing company to offer a more “diverse and comprehensive” range of products.
