Keeping Sponsored Content On The FTC's Good Side

Law360 (October 21, 2019, 4:49 PM EDT) -- For startups, social media can offer cheap and effective publicity, but startups must also be mindful that any advertising, including on social media, will require compliance with federal regulations. While sponsored content regulations once went largely unenforced against social media-based advertising, times are changing.

Advertising on social media is increasingly drawing the eye of regulators. In particular, Federal Trade Commission regulations demand honesty and transparency in advertising — and fortunately, honesty and transparency will keep companies compliant.

In 2016, the FTC sued retailer Lord & Taylor LLC, alleging the company paid online influencers to post pictures of themselves wearing a specific...

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