The consequences of getting the legal details about transparency and disclosure wrong can be terrifying. In this case, they can include fines, class action lawsuits, and the destruction of consumer trust. The Federal Trade Commission, or FTC, enforces the law that prohibits unfair and deceptive acts or practices, which includes misleading advertising. The rule is simple. If there is a material connection between the brand and the endorser or the influencer, that connection must be must be clearly and conspicuously shown.
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