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The FTC simply requires the influencer to “clearly disclose any material connection” with any brand or product they’re promoting on social media. As a further justification for this rule, the FTC noted the patchwork of state data breach reporting statutes, in which regulatory reporting to state Attorneys General may vary, but proposes to require the same type of information to be reported to the FTC as is generally required under state regulatory notice requirements. In October 2021, the FTC issued a final rule to. MICHAEL NEWELL-The Federal Trade Commission (“ FTC” or “Commission”), created by congressional statute, is empowered to prescribe rules that define with specificity acts or practices in or affecting commerce that are unfair or deceptive and establish requirements designed to prevent such acts or practices. Until now, the Federal Trade Commission ( FTC) has not had enforceable guidelines to ensure influencers disclose the products they are paid to promote. A staggering 49% of consumers rely on social media influencer recommendations when making a purchase, according to the Digital Marketing Institute. New FTC guidelines for social media influencers. According to the FTC Jewelry Guides, a representation that a stone is a specific grade is deceptive if the identity of the grading system used is not disclosed (section 23.1, note).
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FTC guides require that if a representation is made about grade, then the identity of the grading system must be disclosed. At an open meeting on May 19, 2022, the FTC voted unanimously to publish a notice in the Federal Register proposing updates to the current Endorsement Guides.