Sep 12, 2017

FTC steps in to resolve social influencer chaos

The Federal Trade Commission filed its first-ever case against social media "influencers" last week. The FTC says that two popular gamers posted messages endorsing an online gaming service without disclosing that the two gamers owned the company. It also sent 21 warning letters to prominent social media influencers that it had previously warned about their potential violation of FTC standards.

Why it matters: The ambiguity around "influencers" hawking products on social media sites has created an advertising frenzy on social media, with no clear distinction between who is sponsoring what. FTC Acting Chairman Maureen Ohlhausen says the Commission's first-ever action against individual influencers, "should send a message that such connections must be clearly disclosed so consumers can make informed purchasing decisions."

  • Our thought bubble: Like the FTC's native advertising guidelines, these will be tough to enforce. A MediaRadar study earlier this year found that nearly 40% of media organizations don't comply with the FTC's standards for labeling and disclosing native ads.
  • Worth noting: Influencers have a unique relationship with consumers that brands would kill to leverage. This is why some media companies are letting their own talent hawk products as influencers on their personal social media accounts. With this in mind, some of the biggest tech companies are trying to get a part of the action.
  • Google & Microsoft are building software to identify influencers, according to CB Insights. "New patents aim to identify and encourage online experts and influencers — with implications for brands and content creators."

Go deeper

Palantir CEO reflects on work with ICE

Palantir CEO Alex Karp told "Axios on HBO" that there have "absolutely" been moments he wished the company hadn't taken a contract with Immigration and Customs Enforcement (ICE).

  • "Did I suffer? ... I've had some of my favorite employees leave," Karp told "Axios on HBO."

Michigan governor won't apologize for coronavirus lockdown

Michigan Gov. Gretchen Whitmer defended the strictness of her state's coronavirus lockdown in an interview with "Axios on HBO," saying it was necessary — despite the protests that have drawn national attention — because of how quickly the state's cases were rising.

The big picture: Whitmer, who has been a frequent target of President Trump, insisted that she had to act in the face of a lack of federal leadership — and that thousands more people in her state would have died without the lockdown.

World coronavirus updates

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Axios Visuals

New Zealand now has only one novel coronavirus patient in hospital and just 22 active cases in the country, top health official Ashley Bloomfield confirmed at a briefing. He's "confident we have broken the chain of domestic transmission," with no new cases reported for most of May, he added.

By the numbers: Brazil on Monday recorded for the first time more deaths from the novel coronavirus in a single day than the United States, Reuters notes. Brazil reported 807 deaths from COVID-19 in the past 24 hours, compared to 620 in the U.S. for the same period.