Lord & Taylor’s recent Instagram push, where it tapped 50 fashion bloggers to promote the same dress, is bringing old regalatory issues back into the spotlight. By many measures, the campaign was a success — the dress it showcased sold out in a matter of days. But the push may have violated 2013 Federal Trade Commission disclosure rules, causing confusion among fans and highlighting the fact that some brands are still misleading consumers with social media endorsements.
While no company wants to get hit with a $250,000 FTC fine — one of the largest penalties doled out so far for non-disclosure — a brand’s relationship with consumers is really what’s at stake.
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IZEA FEATURED
From Ted Murphy, IZEA Founder & CEO
“It erodes trust,” said Ted Murphy, who advised the FTC in drafting the disclosure rules and is CEO of IZEA, a marketplace that connects brands with influencers. “It erodes trust with the brands and the [influencers] who participate in campaigns that aren’t disclosed.”
