Business Influencer Reviews Marketing

Undisclosed Influencer Reviews Being Investigated By FTC

Consumers post comments based on service experienced and the trustworthiness of the company. An example is King Kong agency review on how the digital agency measures up to consumer expectations. There are literally thousands of digital agencies but a good review can make a big difference.

Aside from reviews posted by consumers based on their personal experiences, there are influencer reviews to increase ratings. However, according to a statement released by Rohit Chopra of Federal Trade Commission (FTC), undisclosed influencer marketing posts on social media may be subjected to financial penalties.

Chopra states that it is considered as illegal payola if a company attempts to launder advertising by paying an influencer to pretend that a review is not tainted by a financial relationship. It is stipulated in endorsement guides that when there is an existing connection between the endorser and the retailer of the advertised product or service, it could affect the credibility of the endorsement.

Any relationship between the endorser and the retailer must be clearly disclosed. When the endorsement is posted on a social media platform, the creator must note in the post that it is a part of an advertisement, sponsored content, or paid partnership.

According to Chopra, weak enforcement of endorsement guides harms honest retailers that compete fairly. An example is Instagram’s Branded Content Ads where marketers pay to turn the posts of influencers tagging their brands into ads. The ads clearly add the word sponsored and meet the necessary disclosure requirements.

FTC also targets fake or incentivized reviews as well as platforms and advertisers who are earning tons of money from undisclosed influencer marketing. Smaller influencers are not the target because they might not be well-versed with the guidelines and they are just trying to earn some money. The major concern of FTC is companies that break the law.

The King Kong agency review that you read online is an evaluation of the digital agency from the client’s point of view. A review is often posted by a client who has experienced the services of several digital agencies and identified the one that offers the best value for money. Reviews are designed to help others make a confident decision.