Health food and beverage (“F&B”) companies frequently use social media for advertising. When used properly, social media campaigns can be a highly effective tool to help emerging food and beverage businesses reach their target consumers, create buzz, and generate sales. Because social media is informal, it's easy to forget that a brand's social media posts are subject to the same advertising rules as more traditional forms of advertising, such as TV commercials and print ads.
But it's just a post!
All advertising, including social media posts, must be truthful and must not mislead consumers. The Federal Trade Commission (FTC) and the Food and Drug Administration work together to investigate and, if necessary, take action against companies that violate these rules. Claims that F&B products improve health or reduce the risk of disease often pique the interest of agents. Emerging F&B companies must accurately characterize the nature of the product, its ingredients and intended effects in their advertising. Claims that a product has specific health benefits must be supported by scientific research.
For example, wellness company Teami LLC once claimed: “For centuries, tea has been used in alternative medicine to treat everything from cancer to constipation. The human body needs all the vitamins and minerals it needs. To protect yourself from infections and diseases. The ingredients in Teami Profit have been proven to: …fights cancer cells. ” The FTC cited this language and more than a dozen other claims in its lawsuit against Teami over false health claims that the company's teas can help consumers lose weight, fight cancer, treat colds, and prevent the flu. did. Teami lacked reliable scientific evidence to support its claims and was ultimately required to pay up. Consumers who purchased the company's tea are facing nearly $1 million in fines and refunds.[1]
Influencers must always disclose their relationship with brands
Food influencers are very popular on social media and can help startup food and beverage businesses attract and retain customers. Influencers involved in marketing products must follow the FTC's transparency and material disclosure rules. If an influencer does not comply with these requirements, the company whose products are improperly marketed may be fined or fined as a result.
Influencers must also disclose any “material relationships” they have with brands to avoid deceptive advertising. It is not surprising that there are certain material connections. Influencers should tell their viewers if they have any personal, familial, employment, or financial ties to the company whose product they're talking about. But some material connections are less obvious than others. Influencers must disclose receipt of free or discounted products, promotions, or other benefits from the company. In Teami's lawsuit, the FTC alleged that social media influencers with whom Teami engaged did not adequately disclose their connections to Teami.
Disclosures must be clear and easily visible and understandable to the intended consumer. Sentences like “Thank you Brand X for this delicious drink” are inappropriate because they are ambiguous. This statement may mean that the influencer is thanking the brand for making a good drink, or it may mean that the influencer received the drink for free. A better approach is “BRAND X sent me this delicious drink for free.” This type of statement clearly communicates that the influencer received the product for free.
Disclosures must be “conspicuous.” For video streaming platforms, this means that disclosures must be displayed on screen long enough to be read and spoken in an understandable rhythm. When disclosures are used in post captions, they must appear before the ellipsis or “Learn more” button. Brands should also consider using platform tools in addition to disclosure statements to identify sponsored content, such as Instagram's “Paid Partnerships” tag or TikTok's “Branded Content” toggle.
Note: Each post is a separate advertisement. This means that the required disclosures must be posted in the following locations: every Posts created by influencers on behalf of F&B companies. According to the FTC, even relatively modest engagement such as tags, likes, pins, and similar methods of demonstrating support for a brand or product can be considered an endorsement subject to disclosure rules.
Don't post creative content without permission
Businesses that advertise on social media also need to understand some basic principles of copyright law to avoid infringement. Authors of creative content (photos, images, videos, blog posts, etc.) typically share their creative work when it is fixed (think “posted”) to a tangible medium. owns the rights to. Whenever a company uses someone else's work as part of its marketing strategy, it must obtain the creator's express permission. For example, food and beverage companies should never repost images or videos of third parties eating, drinking, or reviewing their products unless they first have permission from the content creator to use the work. not. Giving credit for content creation to the original content creator is not enough and is a common misconception. Despite being tempted, When reposting content developed by other social media users, companies must always use their own content unless they have first obtained explicit permission to use someone else's creative work. there is.
conclusion
Social media marketing is a proven and powerful tool for emerging food and beverage businesses to increase brand awareness and attract and retain customers. Social media marketing can be very valuable, but it also comes with legal risks. Companies can avoid costly mistakes by understanding and paying attention to these risks.
[1] https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3174-teami-llc
