Influencer Marketing Steering Committee Disclosure Guidelines

Transcription

1 Influencer Marketing Steering Committee Disclosure Guidelines Updated: April 19, 2018

2 Background Ad Standards, in collaboration with an industry panel of companies in the influencer marketing space, presents these Disclosure Guidelines to illustrate best practices for influencer marketing disclosure. The guidelines that follow are meant to educate the influencer marketing industry about their disclosure obligations and to provide a practical framework for providing disclosure. The disclosure best practices will provide clarity on both accepted forms of disclosure to identify paid (in money, product, or experiences) relationships between brands and influencers and the types of relationships that an exist between these parties. Application The Disclosure Guidelines apply to brands, influencers, marketing and communications agencies, and traditional media publications when they are engaged in influencer marketing practices on social media channels. The Disclosure Guidelines cover three main groups of social media channels: Blogs and Microblogs. Social Media Networks. Video Content. From the Committee The members of the Ad Standards Influencer Marketing Committee have come together from across the industry to set out a practical set of guidelines for all those involved in influencer marketing practices. We hope the tools in this document provide clarity on how, when, and what to disclose when engaging in influencer marketing on any social media channel. Please encourage members of your team, from the inception of any influencer marketing campaign, to use these Disclosure Guidelines as a roadmap for providing truthful, fair, and accurate influencer marketing content. With rapidly evolving technology and marketing trends, it is impossible to predict every possible scenario. This is intended to be a living document that will be regularly updated. We invite your comments and feedback at info@adstandards.ca. These Disclosure Guidelines do not constitute legal advice nor do they guarantee compliance with laws and regulations. These guidelines do not replace or supersede regulatory requirements on influencer marketing that exist in certain sectors. Further, the disclosure best practices that follow in this document do not constitute legal advice nor do they ensure compliance with the Canadian Code of Advertising Standards or the Competition Act on material connection disclosure; product performance representation not based on adequate and proper tests; nor false or misleading representations. The full context of any communication must always be considered to determine what may be required. 2

3 Self-Regulatory Framework Considerations Social media has no borders, while laws and regulations are created and enforced by governments operating within their own defined jurisdictions. With this in mind, the Ad Standards Influencer Marketing Committee aims to find best practices that are consistent with the legal and regulatory environments of other organizations and regulators around the world. Why Disclose Disclosing a material connection between the brand and the influencer is necessary to comply with laws and regulations. It is also important for establishing viewer trust by reinforcing advertising as truthful, fair and accurate. Brands and influencers should remain cognizant of the viewer, and whether a material connection between the brand and the influencer would change the viewer s perception of the content. Ad Standards, the advertising industry s self-regulatory body in Canada, administers the Canadian Code of Advertising Standards (the Code). The Code requires disclosure of material connection under Clause 7 / Interpretation Guideline #5 - Testimonials, Endorsements, Reviews. For further guidelines, please refer to Clause 1 (F) and 2 of the Code. See Also Regulatory Landscape In Canada, the Competition Bureau, is the primary government body responsible for enforcing laws about misleading marketing practices. An arm of the federal government, the Competition Bureau oversees the Competition Act, with the goal of preventing fraud, and eliminating deceptive marketing practices. Federal Trade Commission (FTC) FTC Endorsement Guide - What People Are Asking: See also Word of Mouth Marketing Association - WOMMA s Code of Ethics: Shared Responsibility for Compliance The onus for mandatory disclosure compliance falls on all parties involved in the influencer marketing collaboration. There is a shared burden that falls on any agency, PR firm or company responsible for facilitating the sponsorship in addition to the brand advertiser and influencers involved. 3

4 Recent Regulatory Action Canadian Competition Bureau The Canadian Competition Bureau has enforced cases of deceptive marketing practices. One such case involved Bell Canada and astroturfing, which is the publishing of recommendations without disclosing a paid relationship between the author of the recommendation and the brand or product that is being recommended. In 2015 Bell Canada was fined $1.25 million for astroturfing practices, when its employees wrote favourable reviews of Bell Canada products online without disclosing their relationship with the company. It is important to note that breaching the Competition Act can result in civil or criminal action by the Competition Bureau. (see Section 52 or Section of the Competition Act.) Federal Trade Commission (FTC) Enforcement: In the United States, the FTC conducts investigations and brings cases involving endorsements made on behalf of an advertiser under Section 5 of the FTC Act, which generally prohibits deceptive advertising. Case 1 A FTC case involving Sony and its agency Deutsch LA that resulted in significant fines was brought to bare in part because Sony employees were asked to create awareness and excitement about the new PlayStation on Twitter, without being told to disclose their business connection to Sony. Case 2 Trevor TmarTn Martin and Thomas Syndicate Cassell, two social media influencers who are widely followed in the online gaming community, have settled Federal Trade Commission charges that they deceptively endorsed the online gambling service CSGO Lotto, while failing to disclose they jointly owned the company. They also allegedly paid other well-known influencers thousands of dollars to promote their website on YouTube, Twitch, Twitter, and Facebook, without requiring them to disclose the payments in their social media posts. Brands: Example of letters sent by the FTC: In addition to legal action, another approach the FTC has taken recently is to issue letters directly to influencers and brands with inquiries about their marketing practices. Influencers: 4

5 Definitions When designing these Disclosure Guidelines, the Steering Committee found it important to define some industry terminology and clarify key language that is consistent across best practice guidelines in various jurisdictions. Term Material Connection Payment Definitions Any connection between an entity providing a product or service and an endorser, reviewer, influencer or person making a representation that may affect the weight or credibility of the representation, and includes: benefits and incentives, such as monetary or other compensation, free products with or without any conditions attached, discounts, gifts, contest and sweepstakes entries, and any employment relationship, Payment means, in addition to financial compensation, other arrangements, such as the provision of free products in return, may constitute payment. (See definition of Material Connection.) Brand Ambassadorship or Exclusivity A material relationship for a long term engagement, including employment, often with both defined and undefined content production and distribution. This typically includes roles, responsibilities, deliverables, and a set time period outlined in a contract. Advertising In this context, advertising and the disclosure guidelines apply to all exchanges of value between an advertiser or a party working, on behalf of, an advertiser and an influencer. This may include free products, monetary exchange, or other perks with the expectation explicit or implied that a promotion or inclusion of the advertiser s products occurs in the blog. "Advertising" and "advertisement(s)" are defined as any message where the content of which message is controlled directly or indirectly by the advertiser expressed in any language and communicated in any medium to viewers with the intent to influence their choice, opinion, or behaviour. Influencer Someone who possesses greater than average potential to influence others. The people whom influencers affect are defined as a person or group of people who take action or change opinion/behaviour as the result of exposure to information provided by an influencer. This may occur on a blog, social media website, or other media publications. Influencers may also be known as Talent or Content Creators. Brand This includes the professionals who work with the advertisers, their affiliated parties, which may include media agencies, PR agencies, creative agencies, or influencer marketing companies that work with them. 5

6 The Do s and Don ts of Disclosure 6

7 Upfront is best. When in doubt, spell it out. Disclosures are meant to provide transparency and honesty to all parties involved with the sponsored post. Each of these best practices are intended to catch the viewer s attention and ensure the disclosure is clear, conspicuous, and broadly understood. The guidelines are not intended to be prescriptive as social media platforms and the speed of how trends and habits change will not keep up with any defined guidelines. It is important to treat these as best practices and use judgement whenever including disclosures. 7

8 Don t: Hidden Disclosure Common Misconceptions of Disclosures If a creator uses a lot of hashtags/mentions at the end their content then the disclosure should always be prior to those hashtags/mentions. If disclosures are buried in many hashtag lists; or with overlays that are too small or faint, they could be considered as hidden. z Disclosures need to be clear and conspicuous. Highlights in the Example 8 While this endorsement included the disclosure of #ad, it was buried below the main message of the post and included in a hashtag list that doesn t make the disclosure clear and conspicuous. ç z

9 Do: Disclosures should be independent of social media networks or channel-specific settings Many social media platforms offer a feature to disclose a relationship, but there is no guarantee it s an effective way for influencers to disclose their material connection to a brand. It still depends on an evaluation of whether the tool clearly and conspicuously discloses the relevant connection. It should be used together with other disclosure best practices. One factor is about placement. The disclosure should catch viewers attention and be placed where they aren t likely to miss it. A key consideration is how viewers see the screen when using a particular platform. That said, the best practices would be to use the social network s disclosure features as this adds to increased transparency and the networks may require that as part of their user guidelines. 9

10 Do: Disclosures should be upfront and identifiable disclosures in videos There s no guarantee that viewers will read, hear or see a message, unless it is presented at the beginning of a piece and prominently. It s more likely that a disclosure at the end of the video will be missed, especially if someone doesn t watch the whole thing. Having it at the beginning of the review would be better. Having multiple disclosures during the video would be even better. Disclose before the viewer needs to click for more (i.e. in the first couple of lines or first in the post.) 10

11 Do: Disclosures should be made in the language of the endorsement The connection between an endorser and a marketer should be disclosed in whatever language or languages the endorsement is made, consistent with the viewer s interpretation. If the content and captions are in French, disclosures in French should be made-likewise, if the content is in English, the disclosures should be made in English. 11

12 Don t: Blanket Disclosure Common Misconceptions of Disclosures Blanket disclosures on a profile/bio/about section may not meet the criteria of mandatory disclosures because people visiting the site might read individual reviews or watch individual videos without seeing the disclosure on another page. Many readers may not see this blanket disclosure clause and may not clearly understand the relationship between the advertiser and influencer. Highlights in the Example This blanket disclosure may not meet the standard of mandatory disclosures because each individually sponsored post is not connected to a specific brand, product, or describe the nature of the material connection. Where I have received merchandise from a company, I make that clear in the copy of the post or in the outfit details by marking it c/o. Where I have received monetary compensation in return for promotion, I disclose that the post was sponsored in the body of the post. While I attempt to make this as clear as possible on my social media channels, the abbreviated nature of a medium may impact my ability to do so. 12

13 Do: Disclosures should be in close proximity to the endorsement The disclosure should be as close as possible to each message and in such a way that it travels with the message. This means including a disclosure before a URL (clickable or nonclickable), ensuring that sponsored brand mentions are seen with the specific disclosure, and ensuring it makes contextual sense. Include the disclosure in each post, in the video (where applicable) and not just in the comments. Conversely, a single blanket disclosure on a profile/bio/about section such as many of the products I discuss on this site are provided to me free by their manufacturers doesn t really meet the criteria because people visiting the site might read individual reviews or watch individual videos without seeing the disclosure on another page. 13

14 Do: Disclosures should be specific to the brand, product, and Influencers should state the nature of the material connection (i.e. free products, monetary compensation, exclusive invite to an event), which brand gave them, and which specific product they re promoting. Blanket statements that aren t product and/or brand-specific aren t transparent to the viewers. what was given 14

15 Don t Simply tag the brand Common Misconceptions of Disclosures Some influencers only tag the brands of their sponsors, some tag brands with which they don t have relationships, and some do a bit of both. hihicoffee If there s a material connection between the brand and influencer, it needs to be specifically mentioned. Highlights in the Example Tagging a brand may not be viewed and interpreted by viewers as clear about the material connection between the brand and the influencer. xyz_creations Even if no monetary exchange was made, exchange of goods, services, or experiences may constitute as material connection. 15

16 Do: Disclosures should be clearly communicated Context matters. Viewers should be able to see or hear the disclosure in context with the brand mention. Some mediums may require both visual and audio disclosures. Disclosures should be written, said, and/or displayed somewhere it can be easily read, heard, or seen. For example, Facebook/Instagram videos often play without sound, so a visual disclosure would be required. For Instagram photo posts, inclusion in the caption should suffice. If a creator uses a lot of hashtags/ mentions at the end their content then the disclosure should always be prior to those hashtags/mentions. If disclosures are buried in many hashtag lists; or with overlays that are too small or faint, they could be considered as hidden. 16

17 Don t: Ambiguous Hashtags Common Misconceptions of Disclosures Usage of ambiguous phrases or hashtags don t make it clear to the viewer that there is a material connection and relationship, examples include using: #Ambassador, #Partner, #Spon, #PR, #Promo, #PRHaul, #Brand, #Collab. If disclosures are buried in many hashtag lists; or with overlays that are too small or faint, they could be considered as hidden. Highlights in the Examples Usage of hashtags like #collab aren t clear to viewers that this was a paid sponsored post or this product was gifted. The disclosure attempt was also included in a buried list of hashtags which may not be considered clear to viewers. 17

18 Don t: Fabricated Hashtags Common Misconceptions of Disclosures Knowing that influencers received a private event, or free experience sometimes including travel and accommodations could affect how much weight readers give to influencers thoughts about the product. Disclosures are necessary. Inclusions like thanks to X brand for inviting me or I m at X event with X brand would suffice. A brand that were to create their own disclosure hashtag needs to ensure that the material connection is obvious. Highlights in the Example Influencers should be transparent with their viewers about free trips they are brought on from brands. Fabricated disclosure hashtags from brands may not be clear about the nature of the material connection. 18

19 Do: Disclosures should be clear and use widely accepted hashtags # Hashtags that have been recognized as clear and widely accepted include: EN: #ad, #sponsored, #XYZ_Ambassador, #XYZ_Partner (where XYZ is the brand name) FR: #pub, #commandité, #XYZ_ambassadeur, #XYZ_partenaire For gifted items: #giftedproduct, #produitreçu In contrast, if a team combined a company name, such as Cool Stylle with ad to make #coolstyllead, there is a good chance that viewers won t notice and understand the significance of the word ad at the end of a hashtag, especially one made up of several words combined like #coolstyllead. Other unclear hashtags include: #Ambassador, #Partner, #Spon, #PR, #Promo, #PRHaul, #Brand, #Collab, #sp. The nature of the material connection isn t clear, and these terms are subjective. 19

20 Don t: Ambiguous Phrases Common Misconceptions of Disclosures Influencers and brands should not make any assumptions that the viewer will interpret language as a disclosure of a material connection. Treating Thank Company Name as mandatory disclosures is not advisable. A thank you to a company or a brand doesn t necessarily communicate that the endorser got something for free or that they were given something in exchange for an endorsement. A simple disclosure like Company X gave me this product to try...., XYZ Resort paid for my trip, or Thanks to XYZ Resort for the free trip., would be just as accurate to describe the blog post as sponsored by XYZ Resort. and will usually be effective. Highlights in the Examples Usage of a week away doesn t make the material connection clear to the followers of this influencer. The disclosure attempt of #partner is not clear that there was a material connection between the influencer and brand. 20

21 Do: Disclosures should be written with unambiguous language Influencers and brands should not make any assumptions that the viewer will interpret language as a disclosure of a material connection. Treating Thank Company Name as mandatory disclosures is not advisable. A thank you to a company or a brand doesn t necessarily communicate that the endorser got something for free or that they were given something in exchange for an endorsement. The person posting could just be thanking a company or brand for providing a great product or service. But Thanks XYZ for the free product or Thanks XYZ for the gift of ABC product would be good enough if that s all you got from XYZ. 21

22 Examples 22 INFLUENCER MARKETING STEERING COMMITTEE - DISCLOSURE GUIDELINE

23 Do I Need to Disclose? Example Do I still need to disclose? Guidance Gifted items: I was gifted an item from a brand for me to try out, but there wasn t an agreement or obligation for me to post about the brand or product. Viewers may assess the review differently if they knew the product was gifted or discounted, so it is advised that disclosure be included. Tagging brands: I received products from a brand, so I ll tag the brand in my Instagram post and assume my audience knows it was given to me. Some influencers only tag the brands of their sponsors, some tag brands with which they don t have relationships, and some do a bit of both. If there s a material connection between the brand and influencer, it needs to be specifically mentioned. Experiences/Events: I got invited to a private event by a brand to see some of their new products. Knowing that influencers received a private event, or free experience sometimes including travel and accommodations could affect how much weight readers give to influencers thoughts about the product. Inclusions like thanks to X brand for inviting me or I m at X event with X brand would suffice. Non-contractual brand mentions: I m doing a photoshoot with a brand and want to show my audience a sneak peek of me on set with the brand. If the influencer is working in a material relationship with the brand and creates content, even if it wasn t the contractually obligated post, they are obligated to disclose. Paid, but genuine endorsements: Sure I m getting free products from the brand, but I REALLY like them and would post about them even if I wasn t paid. The viewer has the right to know that there is a material connection between the brand and the influencer, even if the influencer genuinely loves and endorses the brand. Replies or Direct Messages to a follower : One of my followers asks me questions about the brand I just posted. Do I need to include disclosures in my reply? When responding to someone s questions about the endorsement via , text, or direct message that person should already see the previous disclosure thus, a disclosure is not necessary, in that context. Testimonials with no material connection: I didn t receive any product, compensation, or experience from the brand, but I want to endorse a product. If no material connection exists between a brand and the influencer, no disclosure is needed. Code Exception: I m a professional athlete with a high-profile partnership with a brand, my audience and the public knows about my ambassadorship, do I need to disclose every mention? When the material connection is one that viewers reasonably expect to exist due to widespread exposure in other media, such as when a celebrity endorses a product or service, then a disclosure may not be necessary. It depends on whether her followers understand that her mentions about products are paid endorsements. This can be difficult to determine, so when in doubt, spell it out. 23

24 YouTube Best Practices of Disclosures on YouTube Disclosure should appear at the beginning of the video and be verbally mentioned or displayed visually on the video itself (within the first 30-seconds). Disclosure should also be identified in the video description. Having multiple disclosure throughout the video would be even better. Should indicate that a brand paid for a collaboration and had a hand in shaping the content (i.e. Thank you to X for sponsoring and collaborating with me on this video ). Highlights in the Examples Disclosures are made through both audio (in the first 30 seconds) and visual cues (above the fold, in the description) in both natural language and an explicit call out in the description. 24

25 YouTube Best Practices of Disclosures on YouTube Disclosure should appear at the beginning of the video and be verbally mentioned or displayed visually on the video itself (within the first 30-seconds). Disclosure should also be identified in the video description. Having multiple disclosure throughout the video would be even better. Should indicate that a brand paid for a collaboration and had a hand in shaping the content (i.e. Thank you to X for sponsoring and collaborating with me on this video ). Highlights in the Examples Usage of YouTube s Paid Promotion feature. 25

26 YouTube Best Practices of Disclosures on YouTube Disclosure should appear at the beginning of the video and be verbally mentioned or displayed visually on the video itself (within the first 30-seconds). Written description includes we ve teamed up with Campbell s and included #ad. Having multiple disclosure throughout the video would be even better. Should indicate that a brand paid for a collaboration and had a hand in shaping the content (i.e. Thank you to X for sponsoring and collaborating with me on this video ). Do not just rely on platform disclosures like Paid Promotion, include your own disclosures. Highlights in the Examples Disclosures are made through both visually (superimposed in the video) and in the description. Video description includes written out we ve teamed up with Campbell s and includes #ad. 26

27 Instagram: Gifted Product Best Practices of Gifted Products on Instagram Disclosures should be made, even if the exchange is gifted products and no monetary compensation is made. Disclosure should appear in the caption as part of the main message. Disclosure should not be buried amongst hashtags. Hashtags aren t mandatory, clearly communicated written or audio disclosure may suffice. Some of the recommended hashtags may include: #giftedproduct, #productreçu. Highlights in the Examples Clearly articulates the material connection to the viewer. For free products, a clearly marked hashtag can be used indicating the nature of the material connection. 27

28 Instagram: Gifted Product Best Practices for Brands Sending Free Products Often free product comes with a letter or card with product information or a note from the party who sent it. Encourage the recipients of gifted product to disclose that they ve received the product. This is a shared responsibility brands can ensure they take the initiative to remind and recommend that influencers disclose the material connection. Highlights in the Examples The brand includes a reminder for influencers to disclose that they ve received these products as a gift. Please disclose you received these products as a gift copy is a best practice of a brand encourage usage. 28

29 Instagram: Events Best Practices for Events and Experiences on Instagram Disclosures should be made, even if the exchange is an experience or private event attendance and no monetary compensation is given. Recommended hashtags aren t mandatory, clearly written or audio communication may suffice. Highlights in the Examples The influencer clearly indicates that she was invited by the two brands hosting this event. Disclosures are made in the main message and not buried in the comments or buried amongst hashtags. 29

30 Instagram: Paid Collaborations Best Practices of Disclosures for Paid Collaborations on Instagram Disclosure should appear in the caption as part of the main message. Disclosure should not be buried amongst hashtags. The brand with the material connection should be clearly indicated. Usage of the Paid partnership tool may be used if the influencer has access to that feature. This may be used in addition to, not instead of, disclosure in the caption. Recommended hashtags aren t mandatory, clearly written or audio communication may suffice. Highlights in the Examples The influencer utilizes Instagram s built-in Paid partnership tool to indicate the material connection. Disclosures are made in the main message and not buried in the comments or buried amongst hashtags. 30

31 Instagram: Stories Best Practices of Disclosures on Instagram Stories Disclosure should appear at the beginning of the story and be verbally mentioned or displayed visually. Disclosure can be visually displayed or verbally stated in the story. If an Instagram Story has a set of Stories meant to be consumed consecutively, disclosure is necessary at the beginning of the series. For multiple Stories posted independently, each story should have its own disclosure. Should indicate that a brand paid for a collaboration and had a hand in shaping the content (i.e. Thank you to X for sponsoring and collaborating with me on this video ) or include one of the recommended hashtags. Highlights in the Examples Brand and disclosure are clearly visible in the Story with proper contrast between the text and the background. Disclosures are mentioned consistently throughout the Story. Usage of #ad makes it clear that this is sponsored content. 31

32 Instagram: Stories Best Practices of Disclosures on Instagram Stories Disclosure should appear at the beginning of the story and be verbally mentioned or displayed visually. Disclosure can be visually displayed or verbally stated in the story. If an Instagram Story has a set of Stories meant to be consumed consecutively, disclosure is necessary at the beginning of the series. For multiple Stories posted independently, each story should have its own disclosure. Should indicate that a brand paid for a collaboration and had a hand in shaping the content (i.e. Thank you to X for sponsoring and collaborating with me on this video ) or include one of the recommended hashtags. Highlights in the Examples Relationship with the specific brand was verbally stated at the beginning of the Story. In addition to your in-story disclosure, brand disclosure can be made in the Story with the paid partnership built-in feature. Verbal disclosure is made upfront in the beginning of the Story. 32

33 Snapchat Best Practices of Disclosures on Snapchat Disclosure should appear at the beginning of the story and be verbally mentioned or displayed visually. Disclosure can be visually displayed or verbally stated in the story. If an Snapchat Story has a set of Stories meant to be consumed consecutively, disclosure is necessary at the beginning of the series. For multiple Stories posted independently, each story should have its own disclosure. Should indicate that a brand paid for a collaboration and had a hand in shaping the content (i.e. Thank you to X for sponsoring and collaborating with me on this video ) or include one of the recommended hashtags. Highlights in the Examples Brand and disclosure are clearly visible in the Story with proper contrast between the text and the background. Usage of Sponsored by makes it clear that this is sponsored content. 33

34 Twitter Best Practices of Disclosures on Twitter Given character limitations, recommended hashtags are most commonly used: #ad, #sponsored. Each tweet should have its own disclosure as they can be consumed independently. The sponsoring brand must be clear in the tweet. Highlights in the Examples Brand and disclosure are clearly visible in the text of the tweet. While the tweet may link to another piece of content, the disclosure can be consumed independent of the linked content. 34

35 Blog Best Practices of Paid Collaborations on Blogs Disclosures should be made before a URL (clickable or non-clickable). The description of the material connection can be written out, as hashtags don t have functionality on a blog. The brand with the material connection should be clearly indicated. Highlights in the Examples The influencer clearly outlines the post in the main part of the body of the blog post. Disclosures are made before any links out to any sponsoring brands. 35

36 Members of the Influencer Marketing Steering Committee Committee Members (Co-Chair) (Co-Chair) Ad Standards mandate is to help industry to regulate itself and we re proud to be working with the influencer marketing sector to help coordinate this project. 36

37 Learn More For further reading, please see: The Canadian Code of Advertising Standards: The Competition Bureau Deceptive Marketing Practices Digest, Volume 1 (2015) Word of Mouth Marketing Association Influencer Marketing Guide to Influencer Marketing Federal Trade Commission Enforcement Guide UK - Australia - France - Germany - International Consumer Protection and Enforcement Network (ICPEN)