U.S. regulator targets ‘influencer’ internet ad campaigns

The U.S. Federal Trade Commission’s settlement this week with Warner Bros Home Entertainment Inc highlighted the regulator’s increasing focus on internet advertising by so-called influencers or online personalities. The agreement came after charges by the FTC that Warner Bros failed to adequately disclose thousands of dollars in payments to popular internet stars for posting positive videos and reviews of the company’s game “Middle Earth: Shadow of Mordor.” As part of the settlement, Warner Bros agreed to disclose payments to influencers in future campaigns or risk penalties or contempt charges. The case is part of the FTC’s push to ensure internet advertisers follow the same laws as traditional advertisers which call for disclose when someone was “compensated to promote or review a product.” The FTC action against Warner Brothers followed similar charges in the Spring against retailer Lord & Taylor.

Original story here.

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