New regulations on social media disclosure may change the way influencers tweet & blog  

Posted by Jana Murphy in , , , ,

The Federal Trade Commission has just passed a law which regulates disclosure in endorsements in social media. Celebrities and other influencers will now be required to divulge to their readers and followers if they are receiving an incentive for a particular tweet or blog post. It is reported that many celebrities are paid to endorse products and companies. Kim Kardashian allegedly receives upwards of $10,000 for posting a single tweet about a product.

From a consumer standpoint, this is a positive change. No longer will readers need to be wary about whether or not a product reviewer or celebrity is being sincere in their promotions. However, from a marketing standpoint, this may not be good news. Social media endorsements are a brand new advertising medium, so consumers are less likely to be desensitized to their messages. Exposing this information will definitely make readers think twice about following the advice.

You should notice changes in endorsed tweets & posts within the next few months.

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2 comments

Elyse DeRoo   says January 8, 2010 at 1:53 PM

I think it is very important that people are aware of what celebrities are being paid to post. We hear about them making tweets all the time, yet some posts you know there was more behind it. I also think its going to be very interesting to see how much they actually do get paid for mentioning a product. I wonder how much one 'tweet endorsement' will be worth?

Cody Landers   says January 10, 2010 at 11:57 PM

Im wondering if this is really necessary? i mean isn't it kind of obvious that celebrities mentioning a product means their getting some sort of kickback for it? Im not opposed to the government attempting to educate consumers, just upset that the general public lacks the common sense to understand it in the first place.

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