This year’s honorees include a Midwest retailer and two multi-store independents, one in New York and the other in New England.
Consumer Group Asks FTC to Enforce Influencer Disclosure
Public Citizen sent a letter to the FTC asking them to take action against the influencers who are still not disclosing sponsored posts on Instagram.
Washington, D.C.--It appears the letters the Federal Trade Commission recently sent to influencers warning them about sponsored internet posts didn’t help, and one consumer advocacy group wants the commission to take action.
In April, the FTC sent letters to more than 90 influencers and advertisers, reminding them to disclose any relationships they might have with brands when they’re promoting them on social media.
It marked the first time that the commission went after individuals--rather than entire companies or brands--and came as the number of celebrities and influencers getting into the gray area of sponsored posts continues to increase.
But, it appears that not many of the letter recipients are listening.
An investigation by Public Citizen’s Commercial Alert into the Instagram accounts of the 46 influencers who received the letter found that only one accurately and consistently complied.
From May 1 to June 12, Public Citizen tracked the influencers’ activities, noting when they posted sponsored content and whether or not it followed FTC guidelines. Of the 412 ads posted by the influencers during that period, 327--or 79 percent--didn’t comply with FTC standards.
“Our investigation indicates that the FTC’s reminder letters have been ineffective and enforcement action is desperately needed to protect consumers.” -- Public Citizen’s Kristen StraderThe number of undisclosed posts in that period reached as many as 35 for one influencer.
Because of the group’s findings, Public Citizen has sent a letter to the FTC asking it to take affirmative enforcement action against the influencers and advertisers that consistently post undisclosed paid product endorsements on Instagram.
“Without consequences, influencers and advertisers have no incentive to follow FTC policy and be honest with consumers,” said Commercial Alert Campaign Coordinator Kristen Strader. “Our investigation indicates that the FTC’s reminder letters have been ineffective and enforcement action is desperately needed to protect consumers.”
After describing its findings and talking about how these influencers continue to mislead consumers, the letter goes on to sum up the FTC’s guidelines and the actions taken in the spring with the letters.
Then, Public Citizen offers “evidence of serial non-compliance,” describing its investigation and results, including a number of examples of undisclosed sponsored posts from the 46 influencers.
Below is one example the group uses, an Instagram post from musician and businessman Akon in which he tagged watch brand Ratel Geneve but did not make clear the relationship between the two, even though he’s pictured and listed
Smile!!! Life is beautiful ⯑⯑⯑⯑
A post shared by Akon Official (@akon) on May 19, 2017 at 1:01pm PDT
Ultimately, the group asked the FTC to “bring enforcement actions and seek penalties” for sponsored content that isn’t disclosed, especially when it’s from repeat offenders.
Additionally, Public Citizen is asking for the FTC to work with Instagram to create a system that makes it easy for the influencers to denote the sponsored status of a post within its guidelines.
It’s worth noting that Instagram recently launched a “Paid partnership with…” format for sponsored posts, but Public Citizen said that even this new tool already needs an overhaul in order to make it clearer.
Public Citizen did not respond to an email from National Jeweler asking if it had received a response from the FTC.
The FTC has not yet commented publicly on the letter.
The full text of the letter can be found on Citizen.org.
The Latest

As an homage to iconic crochet blankets, the necklace features the nostalgic motif through a kaleidoscope of cabochon-cut stones.

Discover the dozen up-and-coming brands exhibiting in the Design Atelier for the first time.

When investing in your jewelry business, it's important not to overlook the most crucial element of success: the sales associates.

The “Royal Ruby” Collection is a quintet of untreated rubies curated by collector Jack Abraham.


The entrepreneur and “Shark Tank” star will share his top tips for success.

Two existing executives have been given new roles.

More shoppers are walking out without buying. Here’s how smart jewelers can bring them back—and the tool they need to do it right.

Meredith Tiderington, an electrical engineering student, was selected for the award.

It will quit assigning the stones specific color and clarity grades in favor of applying “new descriptive terminology.”

From design trends to sustainability, here’s a roundup of can’t-miss education sessions at JCK Las Vegas.

The Jewelers’ Security Alliance offers advice for those attending the annual trade shows.

Her new role is director of strategic initiatives.

The designer is embracing bold pieces with weight to them in “AU79,” a collection she celebrated with a creative launch party.

On an earnings call, CEO J.K. Symancyk discussed what’s working for the company and how it’s preparing for the potential impact of tariffs.

The index partially rebounded after months of decline, due in part to the U.S.-China deal to temporarily reduce import tariffs.

The actress stars in the latest campaign set in Venice, Italy, and is set to participate in other creative initiatives for the jeweler.

The company has joined other labs, including GIA and Lotus Gemology, in adopting the Chinese term for "jadeite jade."

The large stone will be offered at its June sale along with a selection of secondary-type rubies from a new area of the Montepuez mine.

Located in Bangkok, the laboratory is Gemological Science International’s 14th location worldwide.

Those born in June have a myriad of options for their birthstone jewelry.

The diamond industry veteran has been named its senior sales executive.

The company plans to raise the prices of select watches to offset the impact of tariffs.

Between tariffs and the sky-high cost of gold, designers enter this year’s Las Vegas shows with a lot of questions and few answers.

Designed by founder Renato and his daughter Serena Cipullo, it showcases a flame motif representing unity and the power of gathering.

However, the tariffs remain in effect in the short term, as an appeals court has stayed the U.S. Court of International Trade’s decision.

The pop icon is one step closer to launching her “B Tiny” jewelry collection, a collection she first began posting about last fall.