The UK Data Protection Authority, the Information Commissioner’s Office (ICO), has published an update report on privacy issues around real-time bidding (RTB) and programmatic advertising. The report is a progress update on the ICO’s investigation into the AdTech industry, which it says is one of its regulatory priorities.
Be clear. Be open. Be upfront. That’s what influencers need to do to build a following. But those same standards could just as easily describe the legal guidelines applicable to influencers Fall short, and influencers may violate the law.
Last year, major brands found their ads appearing in videos promoting extremist views and hate speech. JPMorgan Chase learned that it was advertising on a fake news site called Hillary 4 Prison. The ad ran under a headline claiming that actor Elijah Wood revealed “the horrifying truth about the Satanic liberal perverts who run Hollywood” (talk about bad publicity).
Music consumers love streaming services. The data surrounding subscriptions and revenue tells us so. Largely self-reporting systems, however, have made it more complicated to quantify that success. Can we trust companies to embrace transparency when their own interests rely so much on the numbers they are reporting?
Last week, the FTC brought its first action against a social media influencer for failing to make appropriate disclosures on sponsored posts. While it had previously prosecuted companies who pay influencers for posts such as Lord & Taylor and Warner Brothers, this marks the first time the FTC has pursued an influencer.
President Donald Trump loves to tweet. Although he has been a prolific tweeter since his days as a reality TV star, during his presidential campaign and subsequent time in office, President Trump has taken the “Art of the Tweet” to new heights. The media, in return, has done its part in slicing, dicing, mincing, chopping, deconstructing, and otherwise analyzing President Trump’s Twitter use six ways to Sunday. (Covfefe, anyone?)
Recently, though, it’s not just the content of President Trump’s tweets that has garnered attention. It’s also his audience.
Every day, businesses extend more of their services to the internet in an effort to cater to millennials and upcoming generations of consumers. Those in the wine industry are no exception. Though somewhat slow to adopt online and digital marketing in the beginning, businesses in the alcohol industry are catching up. One site called the Tasting Room, touted as the fastest growing wine club in the country, offers an online questionnaire that can determine affordable wines that a customer supposedly would like and then deliver them directly to the customer’s door. Part of the assessment involves receiving a tasting kit for the consumer to taste and rate and then completing a survey on the company’s website. Tasting Room’s algorithm then determines appropriate wine selections for you. The customer also rates subsequent shipments so that the wine selections become even more finely tuned over time.
Social media has become a must-have medium for most companies and celebrities. The medium provides an easy, inexpensive and instantaneous connection to customers and fans. However, as social media marketing continues to expand and evolve, so do concerns about deceptive advertising.
Earlier this year, the Federal Trade Commission (FTC) went after Warner Bros. Home Entertainment Inc. for not clearly representing that several digital influencers were paid as part of a marketing campaign for the video game Middle Earth: Shadow of Mordor. (See our prior posts on FTC enforcement of its disclosure requirements.) According to the complaint, these influencers were paid amounts ranging from hundreds of dollars to tens of thousands of dollars and received advance-release copies of the game with instructions on how to promote the game. The sponsored videos were viewed more than 5.5 million times. One very popular influencer, Felix Kjellberg, known as “PewDiePie” on YouTube, created a video that has been viewed over 3.7 million times by itself.
We’ve written previously on the rise in FTC scrutiny and enforcement regarding the use by companies of paid digital influencers without the proper disclosures. Recently, retailer Lord & Taylor found itself in the FTC’s crosshairs when it employed bloggers and Nylon magazine as part of a very successful campaign to promote a clothing collection online and on social media. Unfortunately, the campaign was less successful in its compliance with the FTC Act.
Along with colleagues Lori Levine and Lauren Lynch Flick, we’ve taken a closer look at the case in Lord & Taylor Case Shows the Importance of Transparency in Advertising, itself just the latest example of how companies can run into trouble when they fail to fully disclose a promotion or advertisement.