As influencers and celebrities post, filter, and hashtag their way to fame and fortune, brands are working with them to reach and communicate with consumers. Influencer marketing on Instagram alone is now a massive $1 billion industry.
In April 2017, the FTC sent notices to over 90 celebrities, brands, and influencers reminding them of the regulations. Celebrities and influencers on Instagram have been known to neglect proper disclosures on paid posts, and we wanted to know the extent of the problem. Over the course of one month, we assessed the top 50 celebrities on Instagram to find that just 7% may be in compliance with the FTC’s guidelines and regulations.
Like the rest of the advertising industry, celebrity social media endorsements and influencer marketing are monitored by the Federal Trade Commission (FTC), the government agency charged with consumer protection against unfair or deceptive business practices. Previously, the FTC had filed several notable complaints against large companies like Lord & Taylor for failure to require disclosures on sponsored content on social media.
See the full breakdown of the state of FTC compliance among Instagram’s top 50 celebrities below. For methodology and takeaways on our study, please see additional sections following the infographic.