Endorsements on social media run afoul of FTCAugust 26, 2015 – Article
In her excitement to connect with fans on social media, a famous professional athlete posts about her lifechanging vision surgery at a specific medical clinic. "The surgery was lifealtering and helped me win," she writes, but what she doesn't disclose is that she is a paid spokeswoman for the clinic.
Potentially millions of consumers could see this post, many of whom won't realize it's an endorsement, making it a direct violation of Section 5 of the Federal Trade Commission Act, which generally prohibits deceptive advertising. Instances such as this fictional scenario offered on the FTC website are not a rarity more than half of celebrity endorsements of brands or products on social media are not in compliance with Federal Trade Commission regulations, according to Greenberg Glusker LLP partner Jesse Saivar.