Instagram Will Add ‘Paid Partnership’ Tag to Sponsored Posts, After FTC’s Warnings to Celebrity Users

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Instagram Will Add ‘Paid Partnership’ Tag to Sponsored Posts, After FTC’s Warnings to Celebrity Users

By Todd Spangler

Instagram said it will add a new “paid partnership with” sub-header on sponsored posts and stories — a move that comes two months after the Federal Trade Commission sent out letters to dozens of celebrities warning them that their paid posts on the platform didn’t include sufficient disclosures.

The new effort from Instagram do improve transparency about sponsored content comes after the FTC in April sent out letters to more than 90 influencers and marketers notifying them that they’re required by law to “clearly and conspicuously” disclose the commercial relationship. The agency said it took the step after reviewing numerous Instagram posts by celebrities, athletes and other influencers.

According to the FTC, in some of the letters sent to Instagram users and marketers, the agency specifically noted that disclosures like “#sp,” “Thanks [Brand],” or “#partner” in a post “are not sufficiently clear” to indicate to an average user that the post is sponsored.

The FTC also pointed out that on mobile devices, Instagram posts display only the first three lines of text — meaning that even if disclosures are included, consumers won’t see them unless they click to expand the text. The agency did not identify which Instagram users or marketers it sent the letters to.

The new “paid partnership with” sub-header would address those specific concerns by FTC. Plus, it has the added benefit to Instagram and its partners of letting them more easily track the performance sponsored content.

Read full article and learn more about Social Media Compliance, the FTC, and Deceptive Advertising here.

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Disclaimer:  This article is provided for informational purposes only. It’s not legal advice, and no attorney-client relationship is created. Neither the author nor FTC Guardian, Inc. is endorsed by the Federal Trade Commission.


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