What is disclosure?
A statement that makes obvious the paid relationship of an influencer to a brand in its public communications and published posts about a brand’s products or services. Disclosures must be obvious and can be written, oral, or visual.
Why disclose?
By disclosing the purpose and relationship of a post, influencers are letting their audience know more about the information they are receiving. Influencers retain the freedom to write original content, as well as select which marketers and brands they will represent in exchange for money, gifts, attendance at events, or some other form of compensation. Proper disclosures are necessary to build an influencer’s reputation as a conscientious endorser with whom a brand would want to work.
This site is provided as a free service of IZEA, provider of influencer marketing software that connects agencies and brands with influencers. IZEA believes in transparency and disclosure in influencer marketing.
Why is it important in influencer marketing?
Because marketers and brands offer influencers payment, gifts, or other compensation to create content about their specific products or services, the influencer’s interest in the product or service may be in part their own financial gain. Whether the influencer would have created content on his/her/their own about the product or service without any compensation or not, is immaterial. Once the influencer receives compensation for certain content, the nature of the content has changed in the eyes of law.
The FTC Mandates Disclosure
“If you are endorsing a brand and have a “material connection” with the marketer (that is, a connection or relationship that might affect the weight or credibility that your followers give the endorsement), then your connection should be clearly and conspicuously disclosed, unless the connection is already clear from the context of the endorsement. Material connections could consist of a business or family relationship, or your receipt of payment, free products or services, or other incentives to promote the brand.”
Mary K. Engle
Former Associate Director, Division of Advertising Practices – Federal Trade Commission
