Watchdog urges FTC to crack down on deceptive social media ads

CBS News

Can the government pull back the curtain on social media posts that are really product plugs?

A consumer watchdog is urging the Federal Trade Commission to crack down on deceptive social media ads. Truth in Advertising says many social media stars fail to disclose when they are being paid to push products and services.

It unearthed more than 100 Instagram posts by the Kardashian and Jenner sisters that it says ignored the law, because they were not labeled as ads.

The FTC says companies have a responsibility to educate social media stars on the right way to post an ad, which can be a lucrative business, reports CBS News correspondent Anna Werner.

One PR agency told CBS News a YouTube account with more than seven million followers commands $300,000 on average for a video. One to three million Instagram followers is worth about $50,000 per post.

Pop star Selena Gomez has the most popular Instagram post ever — a photo of her sipping from a Coca-Cola bottle with more than five million likes. Olympian Usain Bolt has plugged Gatorade. Lady Gaga gushed about her Dior jeans.

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