Ryan:

Now granted, is that gonna get you out of a influencer?

Ryan:

Goes out there and says stuff that one isn't truthful is false about the product.

Ryan:

So I see

Emma:

that and I send you a cease and desist take down notice

Emma:

and you don't take it down.

Ryan:

Then the

Emma:

That's on the influencer.

Ryan:

That's gonna be at the influencer.

Ryan:

Because at that point, I mean if you're talking to regulators, it's like we're

Ryan:

trying to actively get this down.

Ryan:

Like you can't just like send a letter and be like, Hey, they'll break your links.

Ryan:

Break your links.

Ryan:

You're my lawyer,

Emma:

and you get to give me three, four steps that I need to take

Emma:

every time I hire an influencer.

Emma:

What is it?

Ryan:

Number one.

Ryan:

Make sure that.

Emma:

Did you know most influencer marketing is not legal?

Emma:

Brands are paying influencers without proper disclosures, and

Emma:

the FTC is coming after them.

Emma:

I'm Emma Rainville, your co-host with Ryan Pote of Gordon Reese, and we

Emma:

have created a spinoff of special ops podcast called Marketing On Trial.

Emma:

We've come together to help you implement true compliance into your direct

Emma:

response online or e-commerce brand.

Emma:

Our topic today is influencer marketing and how to be compliant.

Emma:

If you stay till the end of the show, we're gonna have a checklist for you free

Emma:

of charge called the Influencer compliant.

Emma:

Checklist, so stay tuned for that.

Emma:

Ryan, the state of influencer marketing in 2025, I actually, when we were going

Emma:

through, we don't really plan these out, but we were picking topics and

Emma:

so when we were picking our topics, I said, ah, this one's probably gonna

Emma:

be the most boring and the fastest.

Emma:

And you're like, this is the most important.

Emma:

Why?

Ryan:

No?

Ryan:

Well, I think one of the biggest reasons is the FTCs trade

Ryan:

regulation rule on consumer reviews, endorsements and testimonials,

Ryan:

immediate access to civil penalties.

Ryan:

So that just ups the ante for compliance, but it's really easy to comply with.

Ryan:

It's just people do it incorrectly all the time and just assume that they can

Ryan:

rely on the platforms or, you know, hope that their influencers are gonna

Ryan:

go out there and do exactly what.

Ryan:

What the brand has told them to do.

Emma:

Also, I think most brands that engage most influencers, they're

Emma:

contacting each other and they have no idea that there is compliance.

Emma:

I believe that.

Emma:

So can I give you a couple examples?

Emma:

Sure.

Emma:

We'll do three quick examples.

Emma:

Hotel contacts.

Emma:

Ryan, who has 120 followers because he loves fishing and he posts videos of

Emma:

them fishing and he's not even really monetizing any of it, but the hotel

Emma:

is on, like this fly fishing lake.

Emma:

Is it a lake?

Emma:

I don't know.

Emma:

Um, this place where people like to fish.

Emma:

And they contact you and say, Hey, come stay for free.

Emma:

Eat for free.

Emma:

Drink for free.

Emma:

Fish for free.

Emma:

You paid to fish, I don't know, fish for free.

Emma:

And just post about our place so that the people who watch your

Emma:

show will wanna come fish here.

Ryan:

Yeah.

Ryan:

That, that's gonna be a testimonial or endorsement the person is

Ryan:

receiving that they need to disclose.

Ryan:

That.

Ryan:

They need to disclose.

Ryan:

How do

Emma:

they disclose it?

Ryan:

A couple different ways.

Ryan:

Um, you could do it in the body of.

Ryan:

The endorsement.

Ryan:

Okay.

Ryan:

Or the testimonial be like, Hey, this is Joe from Fish USA, or whatever it is.

Ryan:

You know, this is Joe, we're on the lake and so and so, they flew me out

Ryan:

here to show me this great place.

Ryan:

Like you're embedding this in a more organic way, saying,

Ryan:

Hey, like they brought me here.

Ryan:

I receive, yeah, I'm receiving all, so there's a relationship with the brand and

Ryan:

that I'm being incentivized in some way.

Ryan:

And so that should put the consumer on notice.

Ryan:

Hey, by the way, you might want to be careful.

Ryan:

I mean, I'm getting something and so this might have influenced what I'm saying.

Emma:

Okay.

Ryan:

But hopefully it's gonna reflect their experience.

Emma:

Okay.

Emma:

Donut shop gets approached by influencer who does lots

Emma:

of taste tests of local food.

Emma:

Mm-hmm.

Emma:

Austin, Texas, where I live.

Emma:

Local, tons and tons and tons of local food.

Emma:

We have a donut shop here that I won't.

Emma:

Say the name, but we have a donut shop here that has the most incredibly

Emma:

strange donuts you've ever seen, but they're allegedly delicious.

Emma:

And so she contacts them and says, Hey, I'll make a TikTok of me tasting

Emma:

your donut and telling everybody how amazing it is, and that if you're

Emma:

visiting Austin, Texas, they should come to Austin because I have Austin Eats.

Ryan:

Mm-hmm.

Emma:

TikTok.

Emma:

Yeah, sure.

Emma:

Come on and get a free donut.

Emma:

I get in trouble from the FTC for that.

Ryan:

Now the second you start incentivizing them to

Ryan:

post something about you.

Ryan:

Yes.

Emma:

Even though they approached me,

Ryan:

even if they approached you, it doesn't matter.

Ryan:

I just

Emma:

gave 'em a free donut.

Ryan:

Doesn't matter.

Emma:

Third one.

Emma:

Last one.

Emma:

I'm a large brand and I sell $500 million.

Emma:

And I approach a large celebrity and I pay them a hundred thousand dollars

Emma:

to post my, using my brand four times and they say, Ooh, I love that.

Emma:

I partnered with so and so.

Emma:

My skin is so much clearer now.

Ryan:

Mm-hmm.

Emma:

Compliant.

Emma:

She's partnering.

Ryan:

Yeah.

Ryan:

I, I don't think you're gonna run into an issue there 'cause.

Ryan:

I think for two reasons.

Ryan:

One really well-known celebrity.

Ryan:

Okay.

Ryan:

And then two, when they start, when you hire a really big celebrity,

Emma:

okay.

Ryan:

You know, insert famous person's name.

Ryan:

Sure.

Ryan:

And then they're like, look at my brand of vodka or skin cream, or

Ryan:

whatever it is most of the time.

Ryan:

And there's a counter argument for that where the FTC address as

Ryan:

this and some guidance that, you know, there, a reasonable person

Ryan:

would see this as like, well.

Ryan:

You know, you don't have like an A-list celebrity sitting up there talking

Ryan:

about some product that they just love out of the kindness of their heart.

Ryan:

They're being compensated for it, which is why when you

Ryan:

turn on the television, right?

Ryan:

Okay.

Ryan:

When you see George Clooney talking about an alcohol brand or the Kardashians

Ryan:

about something else, no reasonable person's gonna think that they were

Ryan:

doing that just because they wanted.

Ryan:

I

Emma:

don't know that I agree with you.

Ryan:

Why,

Emma:

um, George Clooney, you know, he looks like an alcoholic to me.

Emma:

Seems like, seems fair.

Emma:

Just seems fair.

Emma:

Maybe he's not, I don't know.

Emma:

Definitely looks like he pushes some back.

Emma:

But let's take the Kardashians.

Emma:

There is no aspect of the Kardashian's life that isn't lived out on tv.

Emma:

From divorces to births, to lies, to big mistakes, to sisters fights,

Emma:

to hair dye, to lip injections, to botch surgeries, to mental illness.

Ryan:

Mm-hmm.

Emma:

Cheating.

Emma:

Like they live everything.

Emma:

They wake up in the morning, they get in their glam chairs.

Emma:

You watch them get all of their stuff.

Emma:

They talk about the things that they love, their salads that they like.

Emma:

Are they partnering with lemons?

Emma:

Like you could certainly just take it and think that it's

Emma:

just part of their every day.

Ryan:

No, very true.

Ryan:

And that's why the FTC has come out and said yes, using a celebrity

Ryan:

is like one of these factors,

Emma:

but saying partner is enough.

Emma:

But

Ryan:

partner is not enough.

Ryan:

Okay.

Ryan:

To make a material connection, disclosure, there's really two portions.

Ryan:

Okay.

Ryan:

We need to put the consumer on notice that there's a relationship

Ryan:

between you and the brand.

Ryan:

So we're partners.

Ryan:

We're partners, but then the whether or not the person providing

Ryan:

that endorsement or testimonial is actually being incentivized.

Ryan:

So it's free for, can you believe

Emma:

I get paid to use this skincare product?

Ryan:

I think you're gonna be fine with that.

Emma:

Okay.

Emma:

What if I just put hashtag ad?

Ryan:

Hashtag ad should be fine.

Ryan:

Okay.

Ryan:

Because you know I was about to do some.

Ryan:

Yeah, but it depends on where it's.

Ryan:

Where it's appearing.

Ryan:

So if you're on Instagram, is it below the fold?

Ryan:

And so is it, you know, hashtag ad at the very end of a lengthy discussion

Ryan:

about the product buried amongst, you know, 15 Yeah, 80 hashtags.

Ryan:

That's what I was gonna say.

Ryan:

No, it needs to be at the top.

Ryan:

And the FTC says that it needs to

Emma:

be the first hashtag.

Emma:

Yeah, it

Ryan:

needs to be the first hashtag, not only the first hashtag.

Ryan:

The FTC would say that it actually needs to be above the text.

Ryan:

So you can get into these debates with Okay.

Ryan:

Regulators over where it should be.

Ryan:

But the FTC is gonna say the material connection.

Ryan:

Disclosure needs to be unavoidable.

Ryan:

You couldn't possibly miss this, that the consumer would read this and understand,

Ryan:

okay, well this person's receiving something or it's an advertisement

Ryan:

or promotion for some sort of brand

Emma:

from an operational standpoint to not kill conversions.

Emma:

I would choose my way where the person is disclosing in a way that's

Emma:

letting their audience who loves.

Emma:

Them know that they love the product while still disclosing it.

Emma:

Like, can you believe I got to partner with them and I get paid to actually do

Emma:

this, or I get paid to use this product, or Can you believe that I get this product

Emma:

for free just for posting it on here?

Emma:

Like I would spend money on this every day.

Emma:

You know what I mean, as you're looking at yourself.

Emma:

So I would certainly do it that way from an, from an operational standpoint.

Ryan:

Well, yeah.

Ryan:

And so, so many of the platforms now having the built in paid partnership.

Ryan:

Yeah, yeah, yeah.

Ryan:

Things like that.

Ryan:

Now the FTC has come out and said, you can't just rely on that.

Ryan:

But even their kind of discussion about communic, you can't

Emma:

rely on it because it might not

Ryan:

show up

Emma:

every time.

Emma:

It

Ryan:

might not show up every time, or it's not prominent enough.

Emma:

But if, if it shows up, is it enough?

Ryan:

Ryan's saying, I think it's fine, especially in the meta platforms.

Ryan:

I think it is very clear when you're using the paid partnership,

Ryan:

I mean, it's right at the very top.

Ryan:

I mean, you can't, it either

Emma:

says sponsor or paid partnership or can't.

Emma:

Yeah, you can't, you can't

Ryan:

actually get to what they're saying without missing that.

Ryan:

Mm-hmm.

Ryan:

I mean, I guess if you're not, don't have your glasses on, but

Ryan:

I think that's pretty low risk.

Emma:

Okay.

Emma:

Um, alright, so let's talk about risk.

Emma:

I'm the brand, you're the influencer.

Emma:

Um, we go into partnership, the disclosures, the FTC doesn't feel

Emma:

like the disclosures were enough.

Emma:

They go after you or me.

Ryan:

Both could be liable, but practically it's gonna

Ryan:

be the brand every time.

Emma:

Okay.

Ryan:

Even if,

Emma:

even if our contract says that you're responsible.

Ryan:

Yes.

Ryan:

Um, I mean the contract is great to have.

Ryan:

Mm-hmm.

Ryan:

'cause you're gonna say, you know, the contract will say, I tried

Emma:

to in good faith,

Ryan:

yes.

Ryan:

Like, do what I'm

Emma:

supposed to do.

Emma:

And this influencer's off the fricking rails.

Ryan:

Like give them the material connection.

Ryan:

Disclosure and every single post that you put on social media about our

Ryan:

brand, this is what you must say.

Ryan:

Now granted, is that gonna get you out?

Ryan:

If an influencer goes out there and says stuff that one isn't truthful is false

Ryan:

about the product, okay, and I see,

Emma:

I see that and I send you a cease and desist take down

Emma:

notice, and you don't take it down,

Ryan:

then that's, that's on

Emma:

the influencer.

Ryan:

That's gonna be at the influencer.

Ryan:

Because at that point, I mean, if you're talking to regulators, it's like

Ryan:

we're trying to actively get this down.

Ryan:

Like you can't just like send a letter and be

Emma:

like, Hey, but break your link.

Emma:

Break your links.

Emma:

Break your links that they're using if you do that, okay, I don't

Emma:

wanna get too hung up on that.

Emma:

Thank you.

Emma:

That's really good information.

Emma:

So if you, you're a brand and you hire me as an influencer,

Emma:

actually, I'm not gonna do that.

Emma:

You're my lawyer and you going to give me three, four steps that I need to

Emma:

take every time I hire an influencer.

Emma:

What is it?

Ryan:

Number one, make sure that the influencer actually uses the product.

Ryan:

So there have been instances where you have these influencers that just

Ryan:

like come to you and they're like, Hey, can I just promote your brand?

Ryan:

Can I promote your brand?

Ryan:

Like they just want either free product or money.

Ryan:

They don't really care how great the product is.

Ryan:

They just want to be something.

Ryan:

Yeah,

Emma:

absolutely.

Ryan:

Right.

Ryan:

So I mean, some of that goes authenticity.

Ryan:

I didn't know

Emma:

they had to use your brand.

Ryan:

Oh, they absolutely, they have to use the product

Emma:

at least once.

Emma:

Right?

Ryan:

Well, like if they're saying if

Emma:

it's a product review,

Ryan:

well, product reviews are a little bit different.

Ryan:

Well,

Emma:

than product endorsements.

Emma:

I understand.

Emma:

We got two different, so we have two buckets.

Emma:

We have two buckets.

Emma:

Product review, product endorsement.

Emma:

If you're gonna do a product endorsement, make sure that they're

Emma:

continuously using your product.

Ryan:

Yes.

Ryan:

So if the endorsement's like, I love this guy.

Ryan:

I love this skin cream.

Ryan:

This is why I use it every day.

Ryan:

Like, look, I don't have any wrinkles.

Ryan:

Like this is what I use on a daily basis.

Ryan:

If that's not true, then that whole endorsement or testimonials.

Ryan:

Is

Emma:

a line.

Ryan:

Yeah, exactly.

Emma:

It's, it's false.

Emma:

Not false advertising.

Emma:

Deceptive advertising.

Emma:

Exactly.

Ryan:

Yeah.

Ryan:

I mean the first thing is make sure that they're actually gonna use your product.

Ryan:

Mm-hmm.

Ryan:

And look at what they're kind of gonna be saying about your product.

Ryan:

Number two would be, if you are incentivizing any way, they need

Ryan:

to include a material connection disclosure, and that goes back to the

Ryan:

contract we were just talking about.

Ryan:

You can draft out the material connection disclosures that they need to present

Ryan:

in every single one of their ads.

Emma:

Whether it's, can you believe I get paid for this or do you believe

Emma:

they send this to me for free?

Emma:

Exactly.

Emma:

Just 'cause I share it with you.

Emma:

I'm so lucky.

Emma:

Exactly.

Ryan:

And then I, I guess the third point is you might not, at certain size, you

Ryan:

might not be able to review every single one of these testimonials or endorsements

Ryan:

that gets placed, but you need to have some sort of audit or tracking process

Ryan:

in the back, on the back end of all this.

Ryan:

So whether it's the influencer emails and inbox somewhere that

Ryan:

has a link to all the ads that at least someone at some period of.

Ryan:

Some interval is going on and you know, either doing keyword searches

Ryan:

or something to figure out like what these people are saying.

Ryan:

I mean, there's an obligation on the business to police what the

Ryan:

affiliates, not affiliates, what the influencers are saying on their behalf.

Ryan:

So those are the big, the three main things that I would recommend.

Emma:

Awesome.

Emma:

Before we wrap up, any final thoughts on influencer marketing and what's coming?

Ryan:

No, I mean, I think it's a great way to build brand engagement.

Ryan:

It is the most authentic way to do it, and

Emma:

brand reputation's important and

Ryan:

you know, I think we might disagree or come to, you know.

Ryan:

We would politely disagree on whether or not some of these

Ryan:

disclosures affect conversion.

Ryan:

But I think at the end of the day,

Emma:

we've actually voided that in this podcast somehow.

Emma:

I think that the, putting the ads, putting hashtag ad and saying nothing,

Emma:

I think that will abso like I, I trust you to share with me what you're

Emma:

using is an influencer that I follow.

Emma:

Yeah.

Emma:

I don't follow influencers, but I'm talking about the mindset

Emma:

of people who sit and watch other people's stuff constantly.

Emma:

We know what I watch and it's not stuff like this.

Emma:

Like murder mystery stuff.

Emma:

But um, I think that when you bury it, and I know you, you're not burying it.

Emma:

If it's the very top it says hashtag ad, I think it would have very low conversion.

Emma:

I think it would have a much higher conversion to just

Emma:

by being extremely upfront.

Emma:

I am, I. Beyond blessed that this is my life and this is my job, and I get

Emma:

paid to share this with you all, or can you believe that they send this stuff

Emma:

to me for free just because of you?

Emma:

Thank you guys for coming in and watching and buying the products that I recommend.

Emma:

Because of you, I get to do this.

Emma:

Right?

Emma:

So I think that that would be way higher converting than these written disclosures.

Emma:

Above the fold that you're talking about.

Emma:

I just think that people just aren't gonna connect with it in the same way.

Emma:

They connect with, oh my goodness.

Emma:

Ryan went to this hotel and they gave him this free thing so that he could go

Emma:

and he told me what to eat and he told me what to drink and he told me where

Emma:

to fish, and he was like, make sure you thank them for sending me out here

Emma:

so I could share this with all of you.

Emma:

There's an authenticity that if I'm a follower, you know, they're cult-like.

Emma:

Right.

Emma:

Totally.

Emma:

So if they're a follower, they're gonna follow you when you lead them.

Emma:

When you try and like have these disclosures that don't make sense

Emma:

to them, I just feel like they're looking at it as like, they're

Emma:

not even discussing it with me.

Emma:

They're just getting paid and they don't really feel this way.

Emma:

Does that make sense?

Emma:

It does.

Emma:

I just, that's what I think.

Emma:

I don't know.

Emma:

I could be wrong.

Emma:

Probably not though.

Emma:

Um, so as we wrap up, thank you so much Ryan, for doing this with me.

Emma:

Um, for those of you that don't know, Ryan and I have created a

Emma:

spinoff of my podcast, special ops podcast called Marketing on Trial

Emma:

because we've had so much fun.

Emma:

He's had so much fun with me.

Emma:

I've had a lot of fun not paying him to ask him a bunch of questions, a

Emma:

lot of money, but he is a really good attorney, so I'm super fortunate and

Emma:

beyond blessed to be doing this with you.

Emma:

So thank you.

Emma:

If you want to get.

Emma:

Notifications every time we post a new episode.

Emma:

Go ahead and like and subscribe so that you can do so.

Emma:

Additionally, we have co-written a influencer compliance checklist,

Emma:

which is in our visionary vault at www.specialopspodcast.com.

Emma:

You can check out all the tools and courses in there.

Emma:

We've co-written a few things, and we'll have all the stuff about

Emma:

influencer compliance and what to look for in your own business.

Emma:

Thank you, Ryan.

Emma:

Thanks, Emma.