Category Archives: Social Media

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SEC KOs Mayweather and DJ Khaled for Promoting Cryptocurrency Without Disclosures

By Kristi Wolff and Lauren Myers on Posted in Native Advertising, Social Media
About a year ago, the SEC issued a warning to celebrities and social influencers who promoted Initial Coin Offerings (ICOs) on social media, noting that such promoters are subject to federal securities laws. Apparently, at least two celebrities weren’t paying attention because they recently settled the SEC’s first cases regarding promoting ICOs without proper disclosures. … Continue Reading

FTC Settlement Addresses Influencers and Native Ads

By Gonzalo E. Mon on Posted in Federal Trade Commission, Influencers, Native Advertising, Reviews, Social Media
Two companies and their principals have agreed to settle FTC allegations that they misled consumers by presenting paid endorsements as independent consumer reviews and ads as independent news stories. Creaxion, a PR agency, was tasked with creating a campaign to promote a client’s new mosquito repellent product around the time the press was reporting about … Continue Reading

Company Sues Influencer for Failing to Influence

By Gonzalo E. Mon on Posted in Influencers, Social Media
Snapchat’s public relations firm recently filed a lawsuit against an influencer who allegedly failed to comply with the terms of his agreement. After Luka Sabbat was photographed with Kourtney Kardashian in September, PR Consulting engaged Sabbat to help promote Snap Spectacles on his Instagram account. According to the agreement, Sabbat was required to make four … Continue Reading

Photoshop Can’t Hide Rimmel’s Influencer Woes

By Gonzalo E. Mon and Lauren Myers on Posted in Advertising, Influencers, Social Media
The Advertising Standards Authority of Ireland – similar to the NAD in the US – recently issued a decision regarding a social media influencer that companies on this side of the Atlantic should note. The case involves social media posts by Rosie Connolly, a fashion, beauty, and lifestyle blogger. Connolly posted pictures with flawless makeup, … Continue Reading

Battling Bots on Social Media

By Gonzalo E. Mon and Lauren Myers on Posted in Influencers, Social Media
In the world of social media, a person’s power is often measured in terms of followers. More followers means the ability to influence more people. Companies who work with influencers understand this and often base compensation on this metric. For example, according to data collected by Captiv8, an influencer with a thousand followers might earn … Continue Reading

2017 Recap

By Kelley Drye on Posted in ADA, Advertising, Advertising Litigation, Class Actions, Consumer Product Safety, Consumer Protection, Federal Trade Commission, Kelley Drye, NAD, Native Advertising, Privacy and Information Security, Promotions, Regulatory Developments, Social Media, State Attorneys General
Most Popular Ad Law Access Posts of 2017 As reported in our Ad Law News and Views newsletter, Kelley Drye’s Advertising Law practice posted 106 updates on consumer protection trends, issues, and developments to this blog in 2017. Here are some of the most popular: New Lawsuit Highlights Risks of Using User-Generated Content FTC Announces $1.3 … Continue Reading

Investing Under the Influence? SEC Issues Warning Letters to Celebrities and Social Influencers

By Kristi Wolff on Posted in Consumer Financial Protection, Federal Trade Commission, Social Media
Earlier this month, the Securities and Exchange Commission (SEC) issued a warning to celebrities and social influencers who use social media to encourage consumers to invest and/or purchase stocks. Recent celebrity endorsements for investment in Initial Coin Offerings (ICOs) were highlighted as examples in the SEC’s warning. In the future, if celebrities and social influencers … Continue Reading

Instagram Expands its Influencer Tool, but is it Enough?

By Gonzalo E. Mon on Posted in Social Media
In June, we posted that Instagram users would start seeing a new “Paid partnership with” tag on certain posts. The company explained that this was part of a tool designed to “help creators more clearly communicate to their followers when they are working in partnership with a business.” (It also allows users to better track the performance of … Continue Reading

KDW Ad Law Presents “Advertising Under The Influence: Rules of the Road For Your Company’s Next Influencer Campaign” via Webinar on Thursday, November 9, at Noon Eastern

By Kristi Wolff on Posted in Advertising, Federal Trade Commission, Social Media
Social media influencers help drive consumer engagement with the brands they love. Better reviews, more “likes,” and thousands of re-tweets can all add up to a bigger bottom line and greater insight into what sells and what doesn’t. When the line between advertising and objective content isn’t made clear, though, it can also prompt legal … Continue Reading

What Does Tweeeeeting Mean for Advertisers?

By Kelley Drye on Posted in Advertising, Enforcement, Federal Trade Commission, Social Media
This week, the news broke that tweets are likely getting longer.  Twitter plans to extend the maximum length of a tweet from 140 to 280 characters, and has already rolled this feature out to selected users.  What are the implications for advertisers, especially those struggling to cope with the need to disclose material connections to … Continue Reading

FTC Takes Action Against Social Media Influencers

By Gonzalo E. Mon on Posted in Federal Trade Commission, Influencers, Reviews, Social Media
This morning, the FTC announced that it had reached a settlement in its first-ever complaint against individual social media influencers and that it had sent warning letters to other prominent influencers. In addition, the FTC announced that it had updated previous guidance on influencer campaigns. Settlement The settlement involves Trevor Martin and Thomas Cassell, owners … Continue Reading

Consumer Groups Push for More Regulation of Influencers

By Gonzalo E. Mon on Posted in Federal Trade Commission, Influencers, Reviews, Social Media
In November, we posted that four consumer groups had sent letters to FTC, encouraging the agency to investigate and bring enforcement actions regarding the use of influencers on Instagram. In April, the FTC responded by sending more than 90 letters to companies and influencers, reminding the recipients of their legal obligations. Now, the consumer groups … Continue Reading

Instagram Announces a New Tool for Influencers

By Gonzalo E. Mon on Posted in Influencers, Social Media
Last year, we posted that four consumer groups had sent letters to FTC, encouraging the agency to “investigate and bring enforcement actions related to the practice of non-disclosed advertising through influencer user profiles on Instagram.” Earlier this year, the FTC responded by sending more than 90 letters to companies and influencers, reminding recipients of their … Continue Reading

FTC Staff Reminds Brands and Influencers About Disclosure Requirements

By Gonzalo E. Mon on Posted in Federal Trade Commission, Influencers, Social Media
In November, we posted that four consumer groups had sent letters to FTC, encouraging the agency to investigate and bring enforcement actions regarding the use of influencers on Instagram. In what may be a response to that encouragement, the FTC just announced that it had sent more than 90 letters to companies and influencers, reminding the recipients … Continue Reading

Ad Law News and Views Newsletter

By Kelley Drye on Posted in Advertising, Antitrust, Class Actions, Consumer Protection, Dietary Supplements, Enforcement, Fashion and Retail, Federal Communications Commission, Federal Trade Commission, Food and Drug, Kelley Drye, Legislative Developments, NAD, Privacy and Information Security, Regulatory Developments, Social Media, State Attorneys General
Did you know Kelley Drye’s Advertising Law practice produces a newsletter, Ad Law News and Views, every two weeks to help you stay current on ad law and privacy matters? Click here to access our Publication Sign Up and select Advertising and Marketing to subscribe. Find contents from the latest issue below: Click here to view with … Continue Reading

Announcing the Advertising and Privacy Law Webinar Series

By Kelley Drye on Posted in Advertising, Advertising and Privacy Law Summit, Advertising Litigation, Agreements, Antitrust, Class Actions, Consumer Financial Protection, Consumer Product Safety, Consumer Protection, Enforcement, Fashion and Retail, Federal & State Regulatory, Federal Communications Commission, Federal Trade Commission, Food and Drug, Internet of Things, Legislative Developments, Marketing & Media Transactions, Mobile Marketing, NAD, Native Advertising, Privacy and Information Security, Real Time Marketing, Regulatory Developments, Social Media, State Attorneys General
Please join Kelley Drye in 2017 for the Advertising and Privacy Law Webinar Series. Like our annual in-person event, this series will provide engaging speakers with extensive experience and knowledge in the fields of advertising, privacy, and consumer protection. These webinars will give key updates and provide practical tips to address issues faced by counsel. … Continue Reading

Groups Renew Call for FTC to Act on Influencer Campaigns

By Gonzalo E. Mon on Posted in Federal Trade Commission, Influencers, Social Media
In September, we noted that four groups – Public Citizen, Commercial Alert, the Campaign for a Commercial Free Childhood, and the Center for Digital Democracy – had sent a joint letter to FTC encouraging the agency to investigate and bring enforcement actions related to the use of influencers on Instagram. The letter included examples of … Continue Reading

Groups Urge FTC to Act on Influencer Campaigns

By Gonzalo E. Mon on Posted in Influencers, Reviews, Social Media
This week, four groups – Public Citizen, Commercial Alert, the Campaign for a Commercial Free Childhood, and the Center for Digital Democracy – sent a joint letter to FTC encouraging the agency to “investigate and bring enforcement actions related to the practice of non-disclosed advertising through influencer user profiles on Instagram.” As we reported last month, … Continue Reading

NY Attorney General Announces 4 Settlements Over False Endorsements

By Gonzalo E. Mon on Posted in Influencers, Reviews, Social Media
Last year, we posted about a settlement between the FTC and Machinima over an influencer campaign. This week, the NY Attorney General announced a settlement with Machinima over the same campaign, along with settlements with three other companies that allegedly solicited false endorsements. In 2013, Machinima paid gaming “influencers” to post videos endorsing Microsoft’s Xbox … Continue Reading

FTC Announces Settlement Over Influencer Campaign for Xbox One

By Gonzalo E. Mon on Posted in Federal Trade Commission, Influencers, Native Advertising, Reviews, Social Media
In January 2014, AdAge interviewed me about news reports that Machinima had hired influencers to create videos promoting Microsoft’s Xbox One gaming console and games. In a native advertising campaign, the influencers posted positive reviews, but didn’t disclose that they had been paid to do so. During the interview, we speculated about whether the FTC … Continue Reading
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