FTC settles with social media 'influencers' over alleged deception

AP/Alex Brandon

Two social media influencers reached a settlement with the Federal Trade Commission, which claimed they endorsed a website without telling their fans they also owned the company.

Why it matters: This was the FTC's first action taken against individual social media influencers. That's a big deal in a world where popular social media users are increasingly taking money from brands to advertise products to their followers. Today the FTC released an updated version of their endorsement guide, warning individuals to disclose their business interests when sharing paid posts on Instagram, Snapchat and other platforms.