FTC cracks down on social media influencers with settlement
Two gamers with large online followings promised to report their activity to the organization and share endorsement connections after they allegedly skirted disclosure rules.
It’s a case that could portend danger for social media influencers—and the marketers who work with them.
Trevor “TmarTn” Martin and Thomas “Syndicate” Cassell have recently reached a settlement with the Federal Trade Commission for failure to disclose their affiliation with an organization they endorsed online.
Martin and Cassell endorsed the online gambling service CSGO Lotto through their social media accounts without letting followers know that they were actually the company’s owners. They were also accused of paying thousands of other gamers to promote CSGO Lotto on platforms including YouTube, Twitch, Twitter and Facebook without requiring them disclose the fact that they were being compensated for their promotions.
While the deal doesn’t require the two to admit any culpability nor does it include a fine, future infractions could cost more than $40,000 per violation, according to an FTC spokesperson who spoke with Glixel about the case.
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