NAD Decision on Wonderbelly Influencer Campaign Challenge

Wonderbelly Faces Challenge Over Influencer Campaign Disclosure Issues

Last week, NAD made a decision regarding a challenge brought against Wonderbelly by a competitor concerning the company’s influencer campaign. The challenger alleged that many influencers hired by Wonderbelly to promote its Antacids failed to properly disclose their connection to the company. Even when disclosures were made, they were often hidden among other hashtags or placed below the fold, requiring consumers to click a link to see them.

In response to the challenge, Wonderbelly has agreed to revise its influencer agreements to comply with the FTC’s Endorsement Guides. This includes requiring influencers to use hashtags like #ad or #WonderbellyPartner at the beginning of each post and verbally disclosing their connection to Wonderbelly in video posts. NAD has approved of these changes.

One specific complaint involved a post by Demi Moore promoting Wonderbelly without disclosing her status as an investor in the company. Wonderbelly stated that Moore usually discloses her investment but has advised her to do so in every post moving forward. NAD cautioned against claiming a post is not an ad when it is.

Another issue raised was the lack of disclosure when Wonderbelly reposted influencer content. The company argued that reposts did not require disclosure, but NAD disagreed. The FTC’s revised Endorsement Guides now require advertisers to clearly disclose their relationship to influencers when reposting their content.

This case serves as a reminder that competitors are vigilant in monitoring each other’s marketing practices. Companies should not rely on staying under the FTC’s radar and should ensure compliance with disclosure guidelines. NAD provides a platform for addressing concerns about competitors’ practices.