How to stop influencer abuse - Learn Online

Legal agreement document, disclosures, and FTC to stop influencer abuse

Lesson Details:
March 19, 2020

Video Transcription: As you can imagine there is a lot of abuse in the influencer marketing space because if you are an influencer sure you're gonna take people's money who just want to give you money few influencers have high enough moral standards to not take on bad promotions this video is brought to you by Appy Pie Academy so there's a lot of like bad promoting and a lot of times you have no idea why some influencer is recommending this like let's say they're drinking Coca Cola is it because they love Coca Cola or because they're paid a lot of times they don't tell you that they're getting paid and the worst single worst case of abuse of this situation is this fire festival you might have heard of the fire a festival just in case you have not heard of the fire festival there is a documentary on Netflix that you can watch it's a really good look into how the influencer marketing really can influence a lot of people negatively and fraudulently in a really large way if you don't have Netflix you can watch trailers on YouTube and I'm oh I'm just mousing over YouTube now and there's a lot of videos on this to give you a slight recap it's basically a few years ago a few people decided to throw like a really big festival and they got some of the biggest celebrities like the biggest models they like the Kardashians and and many others to promote this festival as influencers and then all these like young people and teenagers bought multi-thousand dollar tickets to this get away festival and there was no festival right like there was almost no festival there was like a terrible's for the festival barely you can call it a festival but a lot of people lost a lot of money down was the like number one documented case of such large-scale abuse of influencer marketing so what happened is the government kind of has to step in and prevent such fraud and lies so right now in the United States, there are laws that say that you have to disclose material relationships meaning if you're getting paid to promote something you have to disclose that let me show you that government works that are talking about it this is that page you see it's coming directly from the Federal Trade Commission and I'll link this up in the resources so you can click here and it is very important for you to read it because there's a lot of subpages for example like there's a link to this and there's like a lot of you know FTC endorsement guidelines it should be you should become familiar with so it's good for you to get to know this thoroughly there's a strict endorsement guidelines so you can click on and read through it it's obviously long boring reading the long and short of it is that if you promote something if you're paid to promote something or if you're a brand trying to promote something and if you're a brand if you're a company it's actually potentially more dangerous for you because most influencers they're not that rich and they're just one person so the government is less likely to go after them and more likely to go after bigger and bigger and bigger brands so brands have to make sure that if they pay influencers the influencers disclose this it's an and it's a two-way street there's a responsibility on the brand and there's a responsibility on the influencer to disclose and so they have to use often hashtags like this material connection disclosure and there's a few related hashtags but the long story are if somebody is paid to promote something they have to disclose that it has to be clear to the consumer if you're not based in the United States this might not pertain to you directly because of the United States law only reaches United States law and you have to check the law of your specific country but if you are in the United States then this affects you directly and you have to make sure you stay within this where you can get in a little bit of trouble or a lot of trouble so that's the law like I mentioned I'm going to link this up in the resources of this video please familiarize yourself with how to disclose yourself how to disclose your material connections and you do that from now on if you are either a brand hiring or an influencer and getting hired.

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