* Rachel Gold is a law clerk in the Corporate/Securities Law practice group.
Following up on its action against other celebrities who have promoted crypto investments without disclosing their compensation interest, the Securities and Exchange Commissions (“SEC”) announced “unlawful touting” charges and Order against reality star Kim Kardashian for promoting a cryptocurrency on social media without acknowledging that she was being compensated for the post. This enforcement action is a reminder that it is not just the Federal Trade Commission (“FTC”) who is enforcing compensation disclosures on social media.
Companies turning away from traditional advertising.
The FTC has approved a final consent order with Machinima, Inc., requiring the company to disclose when it has compensated influencers to post YouTube videos or other online product endorsements as part of influencer campaigns.
Federal Trade Commission v. Amazon.com, Inc., No. 2:14-cv-01038 (W.D. Wash.) April 26, 2016
Andrew Lustigman, head of the firm’s Advertising, Marketing & Promotions Practice Group, was quoted in the article “Under the Influence” published in Contently on April 20th, 2016, following the FTC’s Lord & Taylor settlement focusing on native advertisements and influencers.
A number of states are currently considering new laws designed to prohibit companies from imposing a surcharge on consumers who elect to pay for their goods or services by credit card.