Federal regulators announced warnings against two major food and beverage industry groups and a dozen nutrition influencers on Wednesday, as part of a broad action to enforce stricter standards for how companies and social media creators disclose paid advertising. The Federal Trade Commission sent warning letters on Monday to American Beverage, a lobbying group whose members include Coca-Cola and PepsiCo, as well as the Canadian Sugar Institute and a dozen health influencers who collectively have over 6 million followers on TikTok and Instagram. The agency flagged nearly three dozen social media posts that it said failed to clearly disclose who was paying the influencers to promote artificial sweeteners or sugary foods. The action follows a months-long investigation by The Examination and The Washington Post that revealed how the food and beverage industry had enlisted popular dietitians to promote industry-friendly messages on social media posts that often failed to disclose the names of sponsors. Social media marketing ... has been described as the Wild West of advertising. Over $6 billion is expected to be spent on influencer marketing in the United States in 2023. The enforcement action is the first the FTC has taken against major food and beverage industry groups for social media marketing. The agency urged the trade groups and nutrition influencers to remove posts or add proper disclosures and noted that future failures could trigger fines of more than $50,000 for each violation.
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