Undisclosed Influencer Marketing Can Be Penalized By FTC

Statistics show that online shoppers use reviews to help them decide whether a product or service is worth spending for. It is very likely for a consumer who is searching for a digital agency to read king kong advertising review before using the service. Being properly informed leads to a more confident decision.

However, there are platforms and advertisers who are earning tons of money from undisclosed influencer marketing. While many social media platforms have rules covering paid partnerships, there are grey areas surrounding incentives like free products and discounted rates.

Society has enough trouble with false information on social media platforms and they do not need someone who tells the world about a great product that has secretly been paid for the endorsement. According to Rohit Chopra of Federal Trade Commission, companies that launder advertising by paying an influencer to pretend that the review or endorsement is untainted by any financial relationship can be penalized.

According to a non-binding Endorsement Guide, when there is a connection between the seller of an advertised product and the endorser that could affect the credibility of the product, the connection must be clearly disclosed. Creators of reviews in social media platforms must note in their post that the review is part of an advertisement, sponsored content or paid partnership.

A favourable king kong advertising review from a satisfied customer can promote the business. Customers can be encouraged to leave their feedback by providing them with a great experience. Authentic reviews and ratings from people who have purchased the service are the most effective tools for a marketing campaign.