Why Celebrities Are in Hot Water With the Federal Trade Commission Over Their Instagram Photos

Twenty-one celebrities posting Instagram photos of everything from their latest restaurant visit to their travel plans have found themselves on the wrong end of a Federal Trade Commission notice.

Earlier this month the independent federal agency, which is responsible for consumer protection, sent letters to celebrities and social media influencers who were allegedly posting sponsored content to the social media site without properly disclosing it as an ad. The letters requested that the named parties provide a written response by September 30 clarifying whether the cited post or posts involved a "material connection," such as payments or free products. If so, the posters were asked to explain how they would take follow-up action to adhere to federal guidelines.

"... A connection or relationship that might affect the weight or credibility that your followers give the endorsement... should be clearly and conspicuously disclosed, unless the connection is already clear from the endorsement," the letters state.

Naomi Campbell, Snooki, and Vanessa Hudgens were among the many personalities contacted by the commission over potentially deceptive marketing and social promotions for luggage, steakhouses, and wine.

Musicians and TV stars Akon, Lindsey Lohan, and Shay Mitchell were among the 40 others put on notice for violating regulations outlined in the FTC's Guides Concerning the Use of Endorsements and Testimonials in Advertising. According to the independent agency's website, at their heart, the guides "reflect the basic truth-in-advertising principle that endorsements must be honest and not misleading."

The guidelines are not for those who have simply purchased a product and wish to talk about it. Instead, they are meant to address any "material connections" between brands and athletes, celebrities or "influencers," and require people to clearly and explicitly state that prior or established relationship when posting something about a brand's product. It can be as simple as tagging an Instagram post as an #ad or #sponsored and ensures consumers can properly weigh the validity of a recommendation or endorsement. Failing to do so can mean they're participating in deceptive advertising practices.

The FTC was first established in 1914, and the (later enacted) guidelines have been updated multiple times to protect consumers against modernizing advertising strategies. In 2009, the FTC revised them for the first time in nearly three decades in order to address, in part, a growing trend of celebrity endorsements beyond traditional ads, including on talk shows and social media.

The 43 separate letters weren't the first time the FTC reached out to these celebrities. The commission also sent out a round of notices in March, the first time in history the FTC reached out directly to educate social media influencers. Consumer advocacy group Public Citizen helped make the FTC aware of these violations through social media evidence, letters, and petitions back in March and again in September. The organization has urged the independent agency to hold influencers and the corporations they endorse accountable.

In June of this year, Mediakix—an influencer marketing agency—analyzed the Instagram feeds of the top 50 most-followed celebrities and found that 32 had some variation of a sponsored post, and 93 percent of those posts did not comply with FTC guidelines or regulations.