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Instagram Adds Paid Partnership Tool for Transparency

By Allison Fitzpatrick of Davis+Gilbert LLP & Samantha G. Rothaus of Davis+Gilbert LLP on August 3, 2017
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Instagram recently unveiled a new “branded content tool” that will allow influencers who are paid to endorse consumer products to tag partnering brands with an automated “paid partnership” disclosure.

This new feature is intended to create more transparency in the Instagram community and to provide sponsors and influencers the ability to track the performance of their social media content.

Background
This new tool is being rolled out on the heels of the 90 warning letters that the Federal Trade Commission (FTC) recently sent to branads, celebrities and influencers regarding Instagram posts which failed to disclose their paid relationships, as discussed in a previous Alert, through the use of words such as “ad,” “sponsor” or “paid.” The FTC has provided guidance to brands and influencers on how to make a clear and conspicuous disclosure of their material connections, which some influencers feel limits their creativity or authenticity.

How the New Tool Works
Instagram’s new branded content tool will be available for influencers who have registered business profiles with Instagram. These influencers will have access to the branded content tool located in “Advanced Settings” when preparing a caption. When influencers post content that is sponsored by another brand with an Instagram page, the branded content tool would allow the influencer to “tag” the sponsoring brand’s page to indicate the paid partnership. By tagging the sponsoring brand, a “paid partnership with [tagged brand account handle]” disclosure would automatically appear directly below the influencer’s username.

What this Means for Users
This feature is intended to allow the Instagram community to quickly identify a sponsored post in lieu of including an FTC-compliant hashtag such as “#ad” or “#sponsored.” Additionally, influencers and sponsors using this feature will have access to data analytics, showing how well the content performed.

Because the new tool is still in its roll-out phase, not all brands and influencers will have access to the tool immediately. As such, influencers should continue utilizing the FTC-approved hashtags in their social media posts. While Instagram believes that its new tool will create more transparency in the influencer community, we will be monitoring to see whether the FTC agrees that this new tool and its automated paid partnership disclosure effectively disclose paid sponsorships on Instagram.

Bottom Line

The new Instagram branded content tool is intended to provide greater transparency in the social media space by disclosing relationships between influencers and brands. Implementing this tool appears to be Instagram’s response to the FTC’s growing concern about paid endorsements on the platform.

Photo of Allison Fitzpatrick of Davis+Gilbert LLP Allison Fitzpatrick of Davis+Gilbert LLP

An established thought leader in the digital media space, Allison Fitzpatrick brings to her clients a thorough understanding of the power of social media, influencer marketing, native advertising and other forms of emerging media.

Allison has witnessed firsthand the explosive growth of influencer…

An established thought leader in the digital media space, Allison Fitzpatrick brings to her clients a thorough understanding of the power of social media, influencer marketing, native advertising and other forms of emerging media.

Allison has witnessed firsthand the explosive growth of influencer marketing on social media. As popular bloggers transformed themselves into social media influencers — with marketers signing them to lucrative contracts — she was instrumental in shaping those contracts and developing her client’s social media policies. Whether dealing with “micro” influencers in niche categories, or with major celebrities representing national brands, she helps clients navigate the rapidly evolving social media landscape.

Children’s marketers — as well as operators of child-targeted apps and websites — look to Allison for guidance in their online marketing efforts. Knowing the unique power digital media has over children, she routinely reviews websites, apps, privacy policies and marketing campaigns to ensure compliance with the Children’s Advertising Review Unit’s Self-Regulatory Guidelines, the Children’s Online Privacy Protection Act and other laws.

Having worked on some of the industry’s most successful promotions, Allison bore witness to digital media’s dramatic transformation of the promotions industry, as she helped her clients transition from their traditional reliance on print and direct mail promotions to the social media world, where she advises clients on their sweepstakes, contests, free offers, loyalty rewards programs and other promotions.

Even as she keeps a close eye on emerging media platforms, Allison knows how to adapt the traditional principles of truthfulness in advertising to all aspects of her practice, whether advising clients on endorsements and testimonials, price advertising, claim substantiation, negative option marketing, or any other legal issue where those principles apply.

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Photo of Samantha G. Rothaus of Davis+Gilbert LLP Samantha G. Rothaus of Davis+Gilbert LLP

For agencies and brands exploring innovative ways to promote their content and products, Samantha Rothaus provides counsel by balancing legal risk with business objectives. Drawing on prior intellectual property litigation experience, she helps clients launch collaborative projects, understand their contract rights, and negotiate…

For agencies and brands exploring innovative ways to promote their content and products, Samantha Rothaus provides counsel by balancing legal risk with business objectives. Drawing on prior intellectual property litigation experience, she helps clients launch collaborative projects, understand their contract rights, and negotiate talent and production agreements.

Often involved at the earliest stages of a client’s project, Samantha uses a highly attentive and practical approach to avoid problems and craft solutions. Her thoughtful and individualized guidance supports creative agencies and brands launching traditional advertising activities in addition to custom-branded content produced by media partners. Whether companies are seeking collaborative opportunities through co-branded promotional campaigns or sponsored events, or are engaging influencers, celebrity spokespeople or content production vendors, Samantha’s best practices and productive negotiation strategies help achieve their goals and preserve their best interests. She also assists clients in identifying and understanding SAG-AFTRA union obligations.

With her background in intellectual property litigation, Samantha recognizes the value companies place on protecting their intellectual property rights. She evaluates potential benefits and consequences of sharing or promoting content so clients can make sound business decisions. When agencies seek to expand their scope of use, they benefit from her contract analyses to understand their legal rights, obligations and required permissions.

Prior to joining Davis+Gilbert, Samantha’s practice focused on copyright and trademark litigation, brand protection, and trademark prosecution for entertainment companies, fashion retailers and consumer brands.

Read more about Samantha G. Rothaus of Davis+Gilbert LLPEmailSamantha's Linkedin Profile
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  • Posted in:
    Communications, Media & Entertainment
  • Blog:
    ILN IP Insider
  • Organization:
    International Lawyers Network
  • Article: View Original Source

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