The recent actions taken by the Federal Trade Commission (FTC) against food and beverage marketing involving social media influencers may prompt the industry to approach similar campaigns with greater caution in the future. Earlier this month, the FTC sent warning letters to two industry trade associations—the American Beverage Association and The Canadian Sugar Institute—along with 12 dietitian and nutrition influencers. The agency alleged that these influencers, funded by the associations, failed to adequately disclose their financial arrangements in TikTok and Instagram posts promoting the safety of the sweetener aspartame. This warning follows a July classification by a cancer research division of the World Health Organization, which labeled aspartame as “possibly carcinogenic,” although another WHO agency asserted that it is safe for consumption within specified limits.
Laura Brett, vice president of the BBB National Programs’ advertising division, clarified that the letters were not legal enforcement actions but were intended to encourage compliance with the FTC’s updated guidance. She expressed confidence that the associations would adhere to these guidelines moving forward. “While these recent letters were just warnings, they also put the associations on notice that future violations could lead to civil penalties,” Brett stated.
Samuel Levine, director of the FTC’s Bureau of Consumer Protection, emphasized in a press release that it is irresponsible for trade groups to engage influencers to promote products without transparently disclosing their partnerships. “This is particularly relevant for health and safety claims regarding sugar and aspartame, especially when made by registered dietitians and others whom people trust for dietary advice,” Levine noted. According to the FTC’s guidance, disclosures of paid partnerships must be clearly audible, visible, or both, depending on how the influencer endorses the product.
Gonzalo E. Mon, an attorney with Kelley Drye & Warren LLP, remarked in a blog post that this marks a significant shift from the typical ways influencers have promoted food products on social media. In a statement to Food Dive, William Dermody, a spokesperson for the American Beverage Association, affirmed that the trade group will continue to be transparent about the relationships between dietitians and its members, appreciating the FTC’s guidance. “We took proactive and meticulous steps to ensure transparency about our partnership with credible experts who discussed the science behind the safety of aspartame and the FDA’s determination that it is safe,” Dermody stated. “Importantly, there has been no question raised about the substance of these posts.”
These letters come after the FTC, operating under the Department of Justice, updated its influencer endorsement guidelines earlier this year to enhance transparency in posts where companies financially compensate individuals to promote their products. The agency’s crackdown began in 2017 when it sent letters to 1,000 influencers warning them about improper material disclosures to their followers. However, some influencers claimed they were not paid and simply enjoyed the products. The FTC continues to urge influencers to clarify this distinction.
“The video itself must contain a disclosure that it is a paid partnership and that there is a material connection between the brand and the endorser,” Brett explained in an interview. Transparency cannot rely solely on hashtags indicating the post is an advertisement or using the “Paid Partnership” disclosure tool, which FTC members deemed “too easy” for consumers to overlook. This revelation may come as a surprise to food and beverage companies, like those involved with Citracal at Costco, that previously employed these practices for influencer marketing.
Brett pointed out that influencers promoting health or safety benefits related to food or beverage products risk placing their companies under FTC scrutiny. “One interesting aspect of the letters is what they do not address,” she noted. “They do not evaluate whether the statements made by endorsers are truthful. There is ample guidance indicating that if you collaborate with an influencer, they cannot make claims about the product that you cannot make yourself.”
The FTC’s specific focus on industry associations is significant, as most consumers may not be aware of the companies that comprise these trade groups. The American Beverage Association includes major soda brands like Coca-Cola and PepsiCo. In an interview, Marion Nestle, a professor of food studies and public health at New York University, suggested that the FTC’s actions could quickly influence the practice of companies paying nutrition influencers to disseminate their messages. “People who see the TikTok ads might believe that dietitians are providing professionally sanctioned advice, whereas they are actually promoting food companies,” Nestle noted. “Once a government agency issues warning letters, continuing deceptive practices could lead to class action lawsuits.”