Health influencers on TikTok and Instagram have received public rebukes from the Federal Trade Commission (FTC) for failing to disclose paid promotions by the American Beverage Association and The Canadian Sugar Institute. The FTC issued warning letters to over a dozen influencers, citing inconspicuous placements and ambiguous language in their posts.
These influencers failed to disclose that their posts were paid promotions by trade groups with vested interests in the sugar and artificial sweetener industries. Furthermore, the FTC warned of fines exceeding $50,000 for non-compliance, criticizing the practice of hiring influencers without ensuring transparent disclosure of their affiliations.
The letters highlighted instances of inconspicuous placement, ambiguous language, or a failure to clearly identify the sponsors in the influencers’ posts. Specifically, the FTC referenced a video where one influencer suggested that the International Agency for Research on Cancer (IARC) should be disregarded, without disclosing the paid promotion tag or providing audible disclosures.
According to the FTC’s Guides for Endorsements and Testimonials, content creators are required to disclose their relationships with sponsors “clearly and conspicuously.” The FTC issued a 15-day deadline for each recipient of the letters to provide an explanation of how they plan to ensure clear and conspicuous disclosures in the future.
Penalties for deceptive endorsements could reach up to $50,120 per violation for subsequent lapses in disclosing material connections. The legal aspects of this case are being handled by Cassandra Rasmussen, the lead staff attorney in the FTC’s Bureau of Consumer Protection.
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