Last weekend, Lord & Taylor scored a social media coup with an Instagram blitz that had 50 fashion influencers wearing the same dress, which sold out right away.
There was, however, one blotch on the campaign’s success: Neither Lord & Taylor nor its content partners disclosed to followers that this was a paid promotional campaign. The brand told Adweek earlier this week that it provided influencers with the dresses and an undisclosed amount of compensation.
By not including #ad or #sponsored in the posts, the effort would seem to contradict the FTC’s disclosure rules, which require businesses and content creators to let audiences know when social posts are paid placement.
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“There are two issues here: What are you legally required to do, and what’s the right thing to do?” Murphy said.
When agencies and content creators insist on transparency, he said, it helps “protect the creators’ credibility for the audience” in the interest of developing long-term relationships, as opposed to “short-term gains.”
