The United States Or Amendments To The Law KOL Marketing Must Be Marked As Advertising Content.

On Wednesday, Rohit Chopra, a member of the Federal Trade Commission, called for a more severe punishment on companies that do KOL marketing in non advertising forms on social platforms such as Instagram, YouTube and TikTok. According to TechCrunch (Science and technology blog), the FTC Federal Trade Commission approved the proposal of the federal communique (Federal Register, the official publication of the US government) by 5 votes to 0 votes. According to the proposal, the committee will have the existing rules of the advertising industry (Endorsement Guides). Whether we need to reexamine and solicit opinions extensively.
Despite the fact that the Federal Trade Commission has been calling for influencers to take the initiative to announce its sponsorship sources for many years, the effect is negligible. In a recent email case, Lord&Taylor Rod Taylor sponsored 50 social media networks to help companies publish clothing information on Instagram, but did not ask them to disclose the fact that they were sponsoring. The Federal Trade Commission found that Rod Taylor department store had deceived the public. In the settlement, the company was asked to prohibit the publication of distorted information on the independent platform through paid advertisements, but it did not involve any fines.
At present, many companies that want to be exposed will offer free products to net red and celebrities. Although some people will disclose this detail, in general, it is difficult for you to tell whether a promotion is reliable or from a partnership that has not been disclosed. Now, the Federal Trade Commission has decided to crack down on such deception, but they focus on advertising distributors and product companies, rather than those net red individuals. Chopra said: "it's not a problem for individuals to disclose their interests in order to get more income. However, when the company pays the net red, let them pretend that their endorsement and evaluation are not related to interest, and conduct white wash propaganda, this will be considered illegal bribe.
"In order to prevent such fraud from continuing to deteriorate, the Federal Trade Commission needs to have better foresight."
The Federal Trade Commission was extremely dissatisfied with some companies putting pressure on net red to ask them to conceal their cooperation. In 2016, video network Machinima was lawsuits for a fraudulent advertisement, and finally reached a settlement with the Federal Trade Commission. The company did not disclose advertising expenses to YouTube anchors in the Xbox One advertisement, and asked them to make comments in an independent way. The settlement agreement did not involve any fines, nor did it play a deterrent effect on the platform's future native advertising. But now, the Federal Trade Commission has called for "it is necessary to incorporate existing rules into the formal law so as to make the violation necessary (Civil)".
The statement highlighted some of the recent applications of Internet marketing (including Instagram, YouTube and TikTok), and indicated the difficulty of finding real information in various "fake accounts, fake points, false fans and false reviews". In other words, the Federal Trade Commission is tired of these fake friends and decides to effectively crack down on companies that violate policies.