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.