Celebrities, sportstars and social media influncers who promote products must follow rules set by which consumer agency?
Question
Celebrities, sportstars and social media influencers who promote products must follow rules set by which consumer agency?
Solution
Celebrities, sports stars, and social media influencers who promote products must follow rules set by the Federal Trade Commission (FTC) in the United States. Here is a step-by-step explanation:
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Identify the Regulatory Body: The Federal Trade Commission (FTC) is the primary consumer protection agency in the United States responsible for regulating advertising practices.
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Understand the FTC's Role: The FTC's mission is to protect consumers from deceptive or unfair business practices, including false advertising and misleading endorsements.
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Endorsement Guidelines: The FTC has specific guidelines for endorsements and testimonials, which apply to celebrities, sports stars, and social media influencers. These guidelines require that endorsements must be honest and not misleading.
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Disclosure Requirements: Influencers must clearly disclose any material connections they have with the brands they promote. This includes any financial compensation, free products, or other benefits received in exchange for their endorsement.
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Compliance: Failure to comply with the FTC's guidelines can result in legal action, including fines and other penalties. The FTC actively monitors social media and other platforms to ensure compliance.
In summary, celebrities, sports stars, and social media influencers must follow the rules set by the Federal Trade Commission (FTC) when promoting products to ensure their endorsements are truthful and transparent.
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