FTC to Cardi B: It's not okurrr to hide paid endorsements on Instagram
Cardi B is making money moves, but the FTC wants them clearly labeled — especially on social media.
In a case that represents a first for the agency, the FTC dinged the rapper along with singer Jordin Sparks, Instagram model Brittany Renner and seven other influencers for not disclosing paid advertisements for tea and skincare product marketer Teami.
Teami separately agreed to pay $1 million for falsely claiming that its products lead to weight loss, money the agency will seek to return to consumers.
The FTC said 10 influencers didn’t adequately convey that Teami had paid them to highlight its products on Instagram since users would have had to click for more information before seeing a disclosure. Some of the influencers also didn’t disclose a connection in videos posted to the social network. The agency asked each Instagram influencer to respond with how they planned to better disclose paid partnerships in future posts.
Andrew Smith, who heads consumer protection enforcement for the FTC, said the case marks the first time the agency has challenged a company for bogus health claims made by social media influencers.
“Our enforcement action focuses on the advertiser, which is Teami. It’s important advertisers understand that we hold them responsible for the actions and statements of endorsers, including if they make unsubstantiated efficacy claims,” Smith said on a call with reporters. “Whether we might in the future take action against the influencers themselves, it’s a possibility.”
The Teami case is the second time the FTC has acted against Instagram influencers. Lord & Taylor settled with the FTC in 2016 over its failure to disclose that it paid 60 Instagram influencers to post pictures wearing a free dress.
