FTC Warns Trade Groups and Influencers Over Inadequate Disclosures

The warnings follow updated guidelines requiring influencers to prominently disclose paid promotions, with potential penalties of up to $50,120 per violation.

The Federal Trade Commission (FTC) has issued warnings to two food and beverage industry groups, the American Beverage Association and the Canadian Sugar Institute, as well as a dozen online influencers, for failing to adequately disclose paid social media posts that promoted a sweetener and sugary products.
The influencers, some of whom are registered dieticians, were apparently hired by the trade groups to promote the safety of aspartame and sugar-containing products on Instagram and TikTok.
The FTC's warnings follow updated guidelines published this summer requiring influencers to prominently disclose advertisements and paid social media posts that promote products for companies.
Some of the posts reviewed by the FTC had no disclosures, while others had disclosures in the text description of the videos, but not in the videos themselves.
The trade groups and influencers could face civil penalties of up to $50,120 per violation.