Lord & Taylor settles with FTC over concealed Instagram ads

Many brand managers seem confused about the rules of paying for influential social media posts. After a recent blunder, one retailer learns its lesson.

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Last April, Lord & Taylor launched a campaign using photos from influential Instagram users. It raised a few eyebrows at the Federal Trade Commission.

The brand paid Instagrammers to post flattering photos of themselves wearing a dress from L & T’s Design Lab collection. There was only one problem: When the posts went live, it wasn’t clear that the brand was compensating them for their work.

Nearly a year later, Lord & Taylor has to pay for the sins of 2015. The retailer reached a settlement with the FTC, but the details have yet to be disclosed.

They are the latest in a growing list of social media advertisers targeted by the FTC for a failure to make their advertising efforts clear. It’s reported that Lord & Taylor’s Instagrammers were paid between $1,000 and $4,000 for their posts.

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