Consumers Sue Brands and Influencers for Lack of Disclosure
Tricia Meyer
Tricia Meyer, an affiliate marketer, blogger, and consultant, discusses the importance of disclosure guidelines in affiliate marketing.
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The Issue at Hand
Consumers are taking matters into their own hands and suing brands and influencers for not disclosing their endorsement partnerships, citing state laws similar to the FTC Disclosure Guidelines.
Case Details: Sava v. 21st Century Spirits, LLC (Blue Ice Vodka)
- A case is underway, involving Blue Ice Vodka and several influencers promoting their products without revealing their compensated endorsements.
- Consumers claim they were misled by these endorsements and would not have purchased the products if they had known of the payment arrangements.
Key Takeaways for Affiliate Marketers:
- Consumer-driven Lawsuits: The case is initiated by consumers, not government agencies, under Florida, Illinois, and California’s consumer protection statutes (Little-FTC Acts).
- Influencer Campaigns: Some claims are based on influencer campaigns, raising concerns for affiliate marketers who collaborate with influencers.
Understanding the Little FTC Acts
These state laws mirror the federal FTC Act and its guidelines, allowing consumers or competitors to sue brands for deceptive marketing practices, including undisclosed endorsements.
Implications for Affiliate Marketing
While brands and influencers worry about potential FTC actions, they should also consider the potential for consumer class-action lawsuits stemming from undisclosed influencer endorsements.
Note: The case is still unfolding, but it highlights the significance of proper disclosure in affiliate marketing.