The FTC conducted an investigation into the promotion of the opening of a Nordstrom Rack store. Specifically, the inquiry focused on the Tweet Up, where Nordstrom provided gifts, including a $50 Nordstrom Rack gift card, to the influencers who attended the event. The FTC was concerned whether the influencers who wrote about the event provided appropriate disclosures that they had received gifts for attending.
The FTC closed its investigation without an enforcement action, finding that Nordstrom had revised its written social media policies to address adequately the FTC’s concerns. The FTC also focused on the limited nature of the event as well as the fact that some influencers who posted content about the event actually disclosed that Nordstrom had provided them gifts at the preview.
Disclosure and transparency are key regulatory criteria of compliance. And, effective social media policies matter.
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