CollectionsFeb 03, 2026
Jade Trau Releases New Charms, Introduces RondellesThe designer’s latest collection takes inspiration from her classic designs, reimagining the motifs in new forms.
Policies & IssuesAug 11, 2016
FTC to Crack Down on Sponsored Internet Posts
The Federal Trade Commission will be tougher on paid endorsements and how they are disclosed, according to one recent report.
New York--Paid content is hardly something new, yet with the increasing influence of the digital world, a different set of issues has come to light.
As celebrities and “influencers” take to social media channels and Internet platforms in larger and larger numbers to best reach their audiences and fans, the lines between getting paid to post content and giving proper disclosure are blurring.
But the Federal Trade Commission has noticed and now is trying to crack down on sponsored posts, according to a Bloomberg report.
The latest includes an FTC complaint filed against Warner Bros. Home Entertainment, which charges that the entertainment company deceived consumers during a marketing campaign for its video game Middle Earth: Shadow of Mordor by failing to adequately disclose that it had paid online influencers to post positive videos online and didn’t tell influencers to include sponsorship disclosures clearly and conspicuously on the videos.
In addition to prohibiting the company from misrepresenting the paid video reviews as coming from impartial players, the FTC also specified the minimum steps that Warner Bros. must take to ensure it’s complying with the final order, including educating influencers on sponsorship disclosures, monitoring videos for compliance, and terminating or withholding payment when they see non-compliance.
The FTC did not respond to a request for comment from National Jeweler by press time but the Bloomberg report indicates that social media in particular seems to be a bit of a gray area when it comes to paid content and disclosure.
The FTC says it’s OK if #ad is at the beginning of a post, but not #sp and #spon, hashtags indicating a “sponsored” post.
“If consumers don’t read the words, then there is no effective disclosure,” Michael Ostheimer, a deputy in the FTC’s ad practices division, is quoted as having told Bloomberg. “If you have seven other hashtags at the end of a tweet and it’s mixed up with all these other things, it’s easy for consumers to skip over that. The real test is, did consumers read it and comprehend it?”
Earlier this year, the commission also brought a complaint against Lord & Taylor, charging that it “deceived consumers by paying for native advertisements,” including a seemingly objective article in Nylon magazine and on its Instagram that weren’t disclosed as paid content.
Lord & Taylor also allegedly paid fashion influencers to post a dress on Instagram, without disclosing that it had paid
them or given them the dress for free. Any compensation, including free products, must be disclosed, the FTC says.
Cecilia Gardner of the Jewelers Vigilance Committee said that though they don’t see too many paid sponsorships from jewelers that are not clearly labeled as ads online, any that did still would be subject to the same scrutiny as other advertisers.
“Jewelers should be aware of the rules governing online advertisements--it should be clear that ads are paid and not unsponsored testimonials,” she said.
In a 2014 column on National Jeweler addressing similar issues, the JVC’s Sara Yood said, “Consumers are savvy, so it is important to be transparent. This advertising should not be about tricking the consumer, but clearly providing the source of the content of the advertising.”
The JVC website also specifies that “a misrepresentation is material if it is likely to affect consumer’s choices or conduct regarding an advertised product or the advertising for the product.”
When it comes to social media, the FTC says if a post is “part of a sponsored campaign or you’re being compensated … then a disclosure is appropriate.”
While there is no special wording for how to do this, “the point is to give readers the essential information.” A simple disclosure, such as “Company X gave me this product to try …” would do. Or starting a Tweet with “Ad:” or “#ad” also would be effective.
Guidance on digital endorsements and testimonials as well as additional questions regarding social media and endorsements can be found on the FTC’s website.
Cecilia Gardner of the Jewelers Vigilance Committee said that though they don’t see too many paid sponsorships from jewelers that are not clearly labeled as ads online, any that did still would be subject to the same scrutiny as other advertisers.
“Jewelers should be aware of the rules governing online advertisements--it should be clear that ads are paid and not unsponsored testimonials,” she said.
In a 2014 column on National Jeweler addressing similar issues, the JVC’s Sara Yood said, “Consumers are savvy, so it is important to be transparent. This advertising should not be about tricking the consumer, but clearly providing the source of the content of the advertising.”
The JVC website also specifies that “a misrepresentation is material if it is likely to affect consumer’s choices or conduct regarding an advertised product or the advertising for the product.”
When it comes to social media, the FTC says if a post is “part of a sponsored campaign or you’re being compensated … then a disclosure is appropriate.”
While there is no special wording for how to do this, “the point is to give readers the essential information.” A simple disclosure, such as “Company X gave me this product to try …” would do. Or starting a Tweet with “Ad:” or “#ad” also would be effective.
Guidance on digital endorsements and testimonials as well as additional questions regarding social media and endorsements can be found on the FTC’s website.
More on Policies & Issues
The Latest
WatchesFeb 03, 2026
Casio America Calls Jersey City HomeThe watchmaker moved its U.S. headquarters to a space it said fosters creativity and forward-thinking solutions in Jersey City, New Jersey.
SourcingFeb 03, 2026
Nivoda Reveals Upgraded Gemstone MarketplaceThe company also announced a new partnership with GemGuide and the pending launch of an education-focused membership program.
Brought to you by
The MJSA Mentor & Apprenticeship Program: Attracting & Training the Next Generation of Bench JewelersLaunched in 2023, the program will help the passing of knowledge between generations and alleviate the shortage of bench jewelers.
GradingFeb 02, 2026
IGI to Acquire American Gemological Laboratories IGI is buying the colored gemstone grading laboratory through IGI USA, and AGL will continue to operate as its own brand.
Weekly QuizJan 29, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
CrimeFeb 02, 2026
Ylang 23’s Dallas Store BurglarizedThe Texas jeweler said its team is “incredibly resilient” and thanked its community for showing support.
EditorsFeb 02, 2026
Stars Choose Chokers, Elongated Earrings at 2026 GrammysFrom cool-toned metal to ring stacks, Associate Editor Natalie Francisco highlights the jewelry trends she spotted at the Grammy Awards.
Brought to you by
How Jewelers Can Fight Back Against Cell JammersCriminals are using cell jammers to disable alarms, but new technology like JamAlert™ can stop them.
CollectionsFeb 02, 2026
2026 Winter Olympic Medal Design Symbolizes UnityThe medals feature a split-texture design highlighting the fact that the 2026 Olympics are taking place in two different cities.
SurveysJan 30, 2026
These Are the Top Brands of 2026, Says YouGovFrom tech platforms to candy companies, here’s how some of the highest-ranking brands earned their spot on the list.
CollectionsJan 30, 2026
Follow the Beat With Etiq’s ‘Khol’ RingThe “Khol” ring, our Piece of the Week, transforms the traditional Indian Khol drum into playful jewelry through hand-carved lapis.
MajorsJan 30, 2026
Arch Crown’s 2026 ‘Tag & Label’ Catalog Is HereThe catalog includes more than 100 styles of stock, pre-printed, and custom tags and labels, as well as bar code technology products.
CollectionsJan 29, 2026
Ghirardelli’s ‘Chocolocket’ Returns for Valentine’s DayThe chocolatier is bringing back its chocolate-inspired locket, offering sets of two to celebrate “perfect pairs.”
AuctionsJan 29, 2026
These Were Bonhams’ Top 10 Jewelry Lots in 2025The top lot of the year was a 1930s Cartier tiara owned by Nancy, Viscountess Astor, which sold for $1.2 million in London last summer.
SourcingJan 29, 2026
Stuller Website to Mark AGTA-Sourced GemstonesAny gemstones on Stuller.com that were sourced by an AGTA vendor member will now bear the association’s logo.
WatchesJan 29, 2026
Audemars Piguet Opens AP House in AtlantaThe Swiss watchmaker has brought its latest immersive boutique to Atlanta, a city it described as “an epicenter of music and storytelling.”
SourcingJan 28, 2026
Ethical Gem Fair to Debut Designer Showcase in TucsonThe new addition will feature finished jewelry created using “consciously sourced” gemstones.
ColumnistsJan 28, 2026
Peter Smith: Setting the Next Generation Up for SuccessIn his new column, Smith advises playing to your successor's strengths and resisting the urge to become a backseat driver.
SurveysJan 28, 2026
Consumer Confidence Falls Below Pandemic Lows in JanuaryThe index fell to its lowest level since May 2014 amid concerns about the present and the future.
IndependentsJan 28, 2026
Foundrae Heads to Aspen for Latest Store OpeningThe new store in Aspen, Colorado, takes inspiration from a stately library for its intimate yet elevated interior design.
FinancialsJan 28, 2026
Tiffany & Co., Bulgari Sales Resilient as LVMH’s 2025 Sales SlipThe brands’ high jewelry collections performed especially well last year despite a challenging environment.
CollectionsJan 27, 2026
De Beers London, GemFair Debut New Collection Highlighting Artisanal DiamondsThe collection marks the first time GemFair’s artisanal diamonds will be brought directly to consumers.
SourcingJan 27, 2026
GemGuide Launches Pricing for Montana SapphiresThe initial charts are for blue, teal, and green material, each grouped into three charts categorized as good, fine, and extra fine.
TechnologyJan 27, 2026
Clientbook Launches Appointment Booking ToolThe new tool can assign the appropriate associate based on the client or appointment type and automate personalized text message follow-ups.
SourcingJan 26, 2026
Tucson Preview 2026: Earthy Tones and Innovative Shapes Buyers are expected to gravitate toward gemstones that have a little something special, just like last year.
SourcingJan 26, 2026
Angolan Diamond Cos. Join NDC as Rio Tinto, Murowa Exit Endiama and Sodiam will contribute money to the marketing of natural diamonds as new members of the Natural Diamond Council.
MajorsJan 26, 2026
Francesca’s To Close All StoresThe retailer operates more than 450 boutiques across 45 states, according to its website.
