FTC Warns Trade Associations and Influencers About Misleading Social Media Posts on Aspartame and Sugar

0
692
The Federal Trade Commission
The Federal Trade Commission

NEW YORK: The FTC has issued warning letters to two trade associations and a dozen registered dieticians and health influencers for promoting the safety of aspartame or sugar-containing products without adequate disclosures. The warning letters allege that the influencers failed to disclose that they were paid by the industry, violating the FTC Act.

The trade associations in question are the American Beverage Association (AmeriBev) and The Canadian Sugar Institute. The FTC expressed concerns that the organizations may have violated the FTC Act by failing to ensure that the influencers were adequately disclosing their relationship with the industry.

The warning letters follow the FTC’s recent revision of the Commission’s Guides for Endorsements and Testimonials and are part of the agency’s continued monitoring of influencer marketing. The FTC’s Bureau of Consumer Protection Director, Samuel Levine, stated that it is irresponsible for any trade group to hire influencers to promote its members’ products without ensuring that the influencers disclose their relationship with the industry.

The warning letters identified paid posts that either did not disclose a material connection or contained inadequate disclosures. The letters explained the staff’s concerns regarding particular disclosures, including inconspicuous placement, ambiguous language, or the failure to identify the sponsor of the posts.

The warning letters also included the FTC’s notice of penalty offenses concerning misleading endorsements and noted that the recipients could face civil penalties of up to $50,120 per violation for future failures to disclose unexpected material connections. The recipients were asked to contact agency staff within 15 days and detail any actions taken or that will be taken to address staff’s concerns.

The FTC’s primary staff attorney on this matter is Cassandra Rasmussen in the FTC’s Bureau of Consumer Protection. The FTC works to promote competition and protect and educate consumers. Consumers can learn more about consumer topics at consumer.ftc.gov or report fraud, scams, and bad business practices at ReportFraud.ftc.gov. Follow the FTC on social media, read consumer alerts and the business blog, and sign up to get the latest FTC news and alerts.

LEAVE A REPLY

Please enter your comment!
Please enter your name here