Abstract geometric composition illustrating disclosure is not a legal problem. it is a brand problem

October 2022 ยท Advertising

Disclosure Is Not a Legal Problem. It Is a Brand Problem.

The fine is survivable. The permanent asterisk next to every future recommendation is not.

A client's general counsel joined our brand call last week, which never happens unless something has already gone wrong. She had exactly one question, and she asked it before anyone finished saying hello. Does the word partner count, or does the post have to say ad.

Nobody wanted to answer. Everyone knew why she was asking. Ten days earlier the SEC settled with Kim Kardashian over an EthereumMax post she was paid to publish and did not label as paid, and the settlement figure had traveled through every marketing group chat in the country by lunch.

The figure is the least interesting part of the story.

She can pay it. Most of the brands you work with could pay their equivalent. That is not the exposure. The exposure is that every recommendation she makes from here arrives with a small permanent asterisk attached, and the asterisk does not ask whether she was paid. It asks whether she was going to mention it.

Disclosure is not a compliance tax levied on influence. It is the thing that makes influence worth buying in the first place.

Here is the part that gets lost somewhere between the brief and the legal review. Audiences were never confused about whether creators get paid. They have assumed payment for years. What they are actually reading, every single time, is a smaller and far more important signal: does this person treat me as someone worth leveling with, or as inventory.

The brands that understand this stop treating the label as damage. Duolingo runs a social account that is transparently promotional and enormously loved, because it never pretends to be anything other than a company being weird on purpose. Oatly prints the sales pitch on the side of the carton and then jokes about printing it. Patagonia has spent forty years telling you exactly what it wants from you and exactly what it gets back. None of that is legal strategy. It is a posture toward the audience that satisfies the FTC as a side effect.

The alternative posture is the one that gets settled with. You buy reach, you blur the transaction, you bank on nobody doing the arithmetic, and then the arithmetic gets done for them in a press release with a case number on it.

It asks whether she was going to mention it.

So the answer I gave the general counsel was not really a legal answer. Say ad. Say it early, say it plainly, and then spend the rest of the post earning the attention you just admitted you bought. A label costs you nothing you were entitled to keep.

Truffles and Barnaby disclose nothing. They sit on the paid brief and the unpaid one with identical contempt, which is, I think, roughly the correct amount of trust to extend to any marketer.