Events & AwardsApr 18, 2025
Daymond John to Give Keynote at JCK Las VegasThe entrepreneur and “Shark Tank” star will share his top tips for success.
TechnologyMar 08, 2019
Ad Watchdog Asks FTC to Take Action Against Influencers
Truth in Advertising sent a complaint after investigating the same 21 influencers the Federal Trade Commission had already warned about “deceptive” posts.
Madison, Conn.—Ad watchdog Truth in Advertising has filed a complaint with the Federal Trade Commission against a group of social media influencers it says have posted deceptive ads despite previous warnings.
Nearly two years ago, the FTC sent letters to more than 90 influencers and brands, reminding them about disclosure and promotions on social media.
The agency followed up with a second batch of letters in September 2017 to 21 of those influencers—a mix of actresses, singers, reality TV stars and individuals who made their names strictly as influencers—reminding them of their legal obligations and requesting information about their connections to certain companies.
Truth in Advertising (TINA) is now saying there has been no public action from the FTC on this front, leading it to launch its own investigation into the influencers’ Instagram accounts.
The list of influencers, who have a combined following of more than 220 million, includes actresses Vanessa Hudgens, Shay Mitchell and Sofia Vergara, singer Ciara, and socialite and TV personality Scott Disick, who was on “Keeping Up with the Kardashians” for years because of his on-again, off-again relationship with Kourtney Kardashian.
According to TINA.org, 20 of the 21 influencers “continue to violate federal endorsement guidelines” by not clearly and conspicuously disclosing their material connections—ranging from receiving free products to actual endorsement deals—to the brands in their Instagram posts. (The only one not included was Lindsay Lohan, though TINA.org noted that could be because the “Lindsay Lohan’s Beach Club” star wiped her Instagram account clean in October 2018.)
It compiled more than 1,400 “deceptive” social media posts promoting more than 500 brands published between May 2017 and December 2018. The violations in the posts, TINA said, range from “a complete lack of disclosure to burying #ad in the middle of a caption, making it easy to miss.”
Fashion and lifestyle blogger Rach Parcell topped TINA’s list, with 265 allegedly deceptive posts during the time period, followed by Hudgens (175) and Mitchell (140).
Based on its findings, the organization filed a complaint with the FTC on Monday, asking it to take “strict enforcement action against these repeat offenders.”
A TINA spokesperson told National Jeweler it would like the FTC to expand its investigation into the marketing tactics used by these social media influencers and “put an end to this ongoing and pervasive consumer deception,” and that it is “confident” the FTC will take action against these 21 individuals.
The complaint and list of all 21 influencers can be found on TruthInAdvertising.org.
“It’s clear that these social media influencers do not take the FTC’s regulatory guidance seriously and continue to deceptively market goods and services to their fans,” TINA.org Executive Director Bonnie Patten said. “It is time that the FTC takes strict enforcement action against these repeat offenders.”
Earlier this week, FTC Chairman Joe Simons made a statement at the National Association of Attorneys General winter meeting indicating its commitment to enforcing truth in advertising laws about social media influencer marketing.
He said: “Truthful advertising will always be one of the FTC’s core missions, because it lets consumers make informed decisions. As online marketplaces and infomercials continue to flourish, we will continue to prioritize enforcement involving the inappropriate use of influencers, native advertising and consumer reviews.”
When asked by National Jeweler about the FTC Endorsement Guides members of the jewelry trade should keep in mind, Jewelers Vigilance Committee Senior Counsel Sara Yood said if a relationship exists between a brand/company and an endorser and marketer of its product, that relationship must be disclosed, especially if the relationship isn’t obvious. And it must be disclosed in such a way that is conspicuous to the consumer.
As TINA noted, these material connections can include a business or family relationship, monetary payment or the gifting of free product.
Yood also emphasized that the Endorsement Guides apply to both the brands and companies involved as well as the social media influencers and celebrities.
On Instagram, she said, disclosure should be done in the first few lines of the caption so users don’t have to click to expand the caption to see if it is sponsored.
The FTC also says that when multiple tags, hashtags or links are used, readers might skip over them, especially when they are located at the end of a long post, meaning that a disclosure placed in such a location is not likely to be conspicuous.
Truth in Advertising has an article outlining social media disclosure guidelines on its website.
“It’s clear that these social media influencers do not take the FTC’s regulatory guidance seriously and continue to deceptively market goods and services to their fans,” TINA.org Executive Director Bonnie Patten said. “It is time that the FTC takes strict enforcement action against these repeat offenders.”
Earlier this week, FTC Chairman Joe Simons made a statement at the National Association of Attorneys General winter meeting indicating its commitment to enforcing truth in advertising laws about social media influencer marketing.
He said: “Truthful advertising will always be one of the FTC’s core missions, because it lets consumers make informed decisions. As online marketplaces and infomercials continue to flourish, we will continue to prioritize enforcement involving the inappropriate use of influencers, native advertising and consumer reviews.”
When asked by National Jeweler about the FTC Endorsement Guides members of the jewelry trade should keep in mind, Jewelers Vigilance Committee Senior Counsel Sara Yood said if a relationship exists between a brand/company and an endorser and marketer of its product, that relationship must be disclosed, especially if the relationship isn’t obvious. And it must be disclosed in such a way that is conspicuous to the consumer.
As TINA noted, these material connections can include a business or family relationship, monetary payment or the gifting of free product.
Yood also emphasized that the Endorsement Guides apply to both the brands and companies involved as well as the social media influencers and celebrities.
On Instagram, she said, disclosure should be done in the first few lines of the caption so users don’t have to click to expand the caption to see if it is sponsored.
The FTC also says that when multiple tags, hashtags or links are used, readers might skip over them, especially when they are located at the end of a long post, meaning that a disclosure placed in such a location is not likely to be conspicuous.
Truth in Advertising has an article outlining social media disclosure guidelines on its website.
More on Technology
The Latest
CollectionsApr 18, 2025
Piece of the Week: Dukachi’s ‘Easter Bread’ PendantThe Ukrainian brand’s new pendant is modeled after a traditional paska, a pastry often baked for Easter in Eastern European cultures.
IndependentsApr 18, 2025
Bremer Jewelry to Reveal Renovated StoreThe jeweler has announced a grand reopening for its recently remodeled location in Peoria, Illinois.
MajorsApr 18, 2025
Tiffany & Co. Employees Star in Mother’s Day CampaignThe “Strong Like Mom” campaign features moms who work at Tiffany & Co. and their children.
Weekly QuizApr 18, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
CollectionsApr 17, 2025
John Hardy, Athena Calderone Partner on Art Deco Decor-Inspired CollectionInterior designer Athena Calderone looked to decor from the 1920s and 1930s when crafting her first fine jewelry collection.
FinancialsApr 17, 2025
Movado Group to Increase Prices to Offset Tariffs ImpactDuring a call about its full-year results, CEO Efraim Grinberg discussed how the company is approaching the uncertainty surrounding tariffs.
Brought to you by
The Heart of the Industry: Giving Bench Jewelers the Recognition They DeserveBench jewelers spend years honing their skills, Jewelers of America’s Certification validates their talents.
Lab-GrownApr 17, 2025
NDC Launches Its Diamond Learning CenterThe free program provides educational content for jewelry salespeople and enthusiasts to learn or refresh their diamond knowledge.
Policies & IssuesApr 17, 2025
Jewelers of America Requests Tariffs Testimonials from MembersThe feedback will be used to prepare other jewelers for the challenges ahead, the organization said.
IndependentsApr 16, 2025
Catbird Expands to ChicagoThe opening marks the jewelry retailer’s first location in the Midwest.
CollectionsApr 16, 2025
Foundrae’s First Commitment Jewelry Collection Unites Through LoveThe “United in Love” collection offers tangible mementos of hearts entwined with traditional and non-traditional commitment heirlooms.
IndependentsApr 16, 2025
Indiana Jeweler to Host Black Jewelry Designer Pop-UpRobert Goodman Jewelers will hold a “Black Jewelry Designers and Makers” event on April 27.
MajorsApr 16, 2025
WJA Announces Board Members, New Chicago Chapter PresidentThe announcements follow a tumultuous start to 2025 for WJA, which saw a wave of resignations following controversial statements about DEI.
EditorsApr 15, 2025
Tariffs: What We Know Right Now Editor-in-Chief Michelle Graff answers questions about how the new taxes levied on countries like India and China will impact the industry.
EditorsApr 15, 2025
Q&A: Bogolo Joy Kenewendo on Making Deals, Marketing DiamondsKenewendo, Botswana’s minster of minerals and energy, discusses closing the deal with De Beers and the work that was missed along the way.
AuctionsApr 15, 2025
23-Carat ‘Golconda Blue’ Heads to AuctionThe historic fancy vivid blue diamond set to headline Christie’s Geneva sale next month could sell for up to $50 million.
FinancialsApr 15, 2025
LVMH’s Q1 Sales Slip 2 PercentLVMH CFO Cécile Cabanis also discussed the effects of tariffs so far.
CrimeApr 15, 2025
Jon Hamm Plays a Jewel Thief on Apple TV+The “Mad Men” and “The Morning Show” star steals jewelry, art, and handbags from his wealthy neighbors in “Your Friends & Neighbors.”
SourcingApr 15, 2025
Diamond Club West Coast Names 2025 BoardThe organization has reelected Kalpesh Jhaveri as president.
FinancialsApr 14, 2025
Movado to Restate Years of Financials Due to ‘Misconduct’ in Dubai An investigation found that the former managing director of Movado’s Dubai branch overstated and prematurely recorded sales.
CollectionsApr 14, 2025
Sauer Embraces Emptiness Through ‘Ma’ CollectionThe collection pays tribute to the Japanese philosophy of Ma, studying balance, stillness, and the interplay between presence and absence.
IndependentsApr 14, 2025
Illinois Jeweler Closing After 45 YearsMari Lou’s Fine Jewelry in Orland Park, a suburb of Chicago, is closing its doors.
GradingApr 14, 2025
GIA Expands Overseas Services as Tariffs Kick InGIA’s labs in Dubai and Hong Kong are now accepting larger diamonds in light of the “logistical challenges” presented by the new tariffs.
AuctionsApr 11, 2025
Piece of the Week: A Replica of Princess Grace’s Wedding EarringsThese earrings by Van Cleef & Arpels, featuring the same design as a pair worn by Princess Grace, are up for auction at Woolley & Wallis.
Recorded WebinarsApr 11, 2025
Watch: Top Tips for Saving Time With AITwo experts share how artificial intelligence tools can help retailers run a more efficient business.
SourcingApr 11, 2025
Mikimoto Names New President, CEO for U.S. DivisionKentaro Nishimura, who has been with the pearl company since 1997, has been promoted to president and CEO of Mikimoto America.
