Posts Tagged: Endorsement

Where’d You Get That Dress? FTC Dresses Down Lord & Taylor Native Advertising

This week the FTC settled charges against Lord & Taylor from alleged deceptive native advertising during its March 2015 Design Lab social media campaign. A big takeaway from this settlement is the FTC’s position that a company not only has to comply with the Native Advertising/Endorsement disclosures on its own social media platforms, but also has to ensure (by contract and monitoring) that its paid endorsers make the requisite disclosures on their own social media posts.

For its sales campaign, L&T focused on one product, the Paisley Asymmetrical Dress, to flood the Internets. The native advertising included:

  • L&T gave the Dress to 50 select fashion influencers (what a job!) who were paid $1,000-$4,000 to post pictures of themselves on Instagram wearing the Dress. By contract, L&T required them to use “@lordandtaylor” and “#DesignLab” in the posts. The contract did not require the influencers to disclose in their postings that they had been compensated by L&T. L&T pre-approved each of the posts to ensure use of the user designation and hashtag. None of the posts had any endorsement disclosure and L&T did not add any.
  • L&T contracted with the fashion magazine Nylon to run an article with a picture of the Dress, which L&T pre-approved. L&T did not require Nylon to disclose the relationship in the article.
  • L&T also contracted with Nylon to post a picture of the Dress on Nylon’s Instagram page; again, no disclosure requirement.

The campaign was a huge success; it reached 11.4 million Instagram users and produced over 300,000 brand engagements; and the Dress sold out in days. But while women everywhere said yes to the Dress, the FTC said bad to the ads. (more…)

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Did Peyton Manning Go One Pitch Too Far? (Native Advertising at the Super Bowl)

We all know Peyton Manning – he’s a professional pitcher: for Papa Johns, DirecTV, Buick, and Gatorade, among others. He’s also a professional quarterback. But did his post-Super Bowl pitches for Budweiser and Papa John’s go too far. As you may recall loyal followers of this blog, I wrote in December about the new FTC Native Advertising Rules. In particular, how the FTC was looking for transparency when an advertisement is slyly placed so as to appear to be part of the medium itself.

Take a look at Peyton’s hug with the Papa John himself and his comment about Budweiser made on national television immediately after the Bronco’s Super Bowl win. Papa John’s: Budweiser at 1:17: (more…)

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I Said Your Product was Great, Now Gimme a Prize: The FTC Enforces Its Endorsement Guidelines

Yesterday, the FTC settled a deceptive advertising lawsuit against the creators and marketers of the Lumosity “brain training” program. For those of you not smart enough to know, the “brain training” program claimed to not only boost your performance at work or school, but also slow down those pesky cognitive impairments we all seem to experience as we get older.

What was I saying? Oh, yeah. As part of its marketing campaign, Lumosity ran an “Athlete Testimonial Contest” inviting entrants to share their story of how “Lumosity has helped them take their athletic abilities to the next level for the chance to win a Lifetime Subscription, the new iPad, and more!” (NB: Apple frowns upon giving away iPads.)

With this call to action, burgeoning athletes took time away from their snatch and jerks to post their stories online to gain entry into the (sic) “contest”. (more…)

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