Importance of Monitoring Your Brand Influencers
A recent National Advertising Division (NAD) ruling is a reminder that brands should closely monitor what influencers promoting their products say. This includes influencers who receive free products or are otherwise not formally paid by the brand. NAD is a self-regulatory body that reviews truthfulness and accuracy in national advertising. NAD may refer complaints to federal regulators.
According to a recent complaint to NAD from beauty company Charlotte Tilbury, a Tik Tok influencer falsely stated that competitor Huda Beauty’s makeup spray is stronger and longer lasting than Charlotte Tilbury’s competing product. Huda Beauty did not pay the influencer but regularly sent free products. In addition, Huda reposted the Tik Tok video. Charlotte Tilbury asserted that Huda Beauty is responsible for the influencer’s false assertion.
In its response, NAD agreed that Huda Beauty is responsible for the influencer’s statements. A company can be responsible even in the case of an informal relationship such as a company providing an influencer with free products.
As reinforced by the NAD decision, companies should provide clear guidance to influencers whether the relationship is formal or informal. Brands should monitor influencer posts and provide influencers with clear product guidance. Companies should require influencers to disclose relationships with the Company and follow FTC guidance.
If you have any questions about consumer or advertising laws, please contact grIP Law PLLC’s attorneys Jed Weiner at jweiner@gripventure.com or Melinda Wang at melinda@gripventure.com
