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24th April 2017
08:15pm BST

The FTC said that their warnings stated that advertisements must be “clearly and conspicuosly” tagged as a paid promotion, and followers must be made aware when an influencer has received a product for free. “In addition to providing background information on when and how marketers and influencers should disclose a material connection in an advertisement, the letters each addressed one point specific to Instagram posts – consumers viewing Instagram posts on mobile devices typically see only the first three lines of a longer post unless they click ‘more’, which many may not do,” read the Commission’s statement on the issue. “The staff’s letters informed recipients that when making endorsements on Instagram, they should disclose any material connection above the ‘more’ button.”
The news will come as a blow to stars like Kim Kardashian, Gigi Hadid and Michael Phelps who can all earn $100,000 to $250,000 for a single endorsed post, according to experts.
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