The Role of Influencers in Advertising and the Law of Sponsored Content

These days, scrolling on social media feels like walking through a store. Every other Instagram post seems to have “#ad” or “#paidpartnership” in the caption, and TikTok Shop content often overshadows the cute miniature dachshund videos I actually signed up for. While it can be frustrating, I also recognize that sponsored content comes in different forms. Sometimes, as soon as I see a post is sponsored, I immediately scroll past it, saving myself a couple of minutes I might have otherwise spent reading about a product. Other times, especially on Instagram, I encounter sponsored content from influencers I already follow. For instance, I primarily follow health and wellness influencers like Sami Clarke. If she promotes a supplement as part of her morning routine and consistently features it in both sponsored posts and casual Instagram stories, it feels like a genuine part of her lifestyle. As a result, I’m more likely to consider purchasing it and less bothered by the advertisement.

Similarly, as a dedicated podcast listener, I usually skip through traditional ad segments. However, when a podcast host, for instance Lauren Bosstick, organically discusses a product she actually uses—like her favorite sleep mask or electrolyte brand—and offers a discount code, I’m much more inclined to make a purchase. While FTC regulations require influencers to disclose partnerships for consumer transparency, these rules can unintentionally disrupt aesthetics, strain influencer-follower relationships, and even limit brand growth by making advertisements feel less authentic, ultimately pushing sales away.

Recently I became aware of the term “parasocial relationship” which is “a one sided connection with a media figure or influencer where the influencer is unaware of the other person’s feelings.” With social media usage at an all-time high, especially since COVID-19, parasocial relationships have likely grown as well, due to increased screen time and the rise of more casual platforms like TikTok. Because consumers have a (one-sided) relationship with the influencers they follow, ads can come off as jarring or almost a betrayal in that “relationship” creating a wall between influencers and their audiences.

For many influencers, sponsored content is a primary source of income, but balancing brand requirements, FTC guidelines, and maintaining an authentic social presence can be challenging. As a self-proclaimed "micro-influencer", I’ve received products to review, post about, or simply enjoy. I’ve also been given discount codes to share with my followers, friends, and family. Having a smaller account gives me more flexibility, but I always prioritize adhering to the guidelines outlined in any campaign brief I receive. If a brand sends me a product without explicitly requesting a post or providing compensation, I usually refrain from posting unless I genuinely love and use the product. The challenge arises when I receive a discount code for a brand I’m passionate about. Including the code alongside my organic enthusiasm sometimes makes my recommendation feel less credible, as if my excitement is tied to an incentive rather than genuine appreciation. I imagine many larger influencers face a similar dilemma.

I’m unsure whether the FTC guidelines need to be updated to allow for more subtle disclosures or if influencers should only accept partnerships with brands they truly align with to better fit with their aesthetic. The FTC last updated its regulations in 2023, emphasizing consumer protection, child-directed advertising, and clearer disclosures across all platforms. However, not all social media platforms operate the same way. In my experience, a successful Instagram ad looks very different from a successful TikTok ad—Instagram tends to favor polished content, while TikTok thrives on candid, casual promotions.

FTC regulations could better serve both influencers and consumers if they allowed for platform-specific guidelines or provided more flexibility in how ads are disclosed. Giving influencers creative freedom while maintaining transparency could enhance trust and engagement rather than diminish it. Another potential improvement could involve a range of disclosure requirements, adjusting the level of explicit disclosure based on the scale of the partnership. Long-term collaborations, where an influencer has consistently used a product over time, might warrant less rigid labeling than one minor sponsorship post.

To improve content quality, consumer experience, and brand marketing effectiveness, the FTC should consider revising its guidelines. Finding a balance between transparency and creative freedom would not only benefit influencers but also foster more authentic digital relationships with consumers creating a more pleasant online experience for everyone.