influencers
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Instagram influencers fanned the flames of Fyre Festival hype
When tech entrepreneur Billy McFarland and rapper Ja Rule (born Jeffrey Atkins) created Fyre Festival, a music event in the Bahamas for the selfie generation, they never imagined their idea would be on the receiving end of seven fraud and negligence class-action lawsuits (including one seeking $100 million) by the end. And that end came quicker than they'd imagined: After poor planning by organizers left people stranded at airports, without lodging and eating cheese sandwiches instead of the five-star meals promised, Bahamas officials decided to shut down the festival on opening day. "The event organizers assured us that all measures were taken to ensure a safe and successful event," the Bahamas Ministry of Tourism said in a statement, "but clearly they did not have the capacity to execute an event of this scale."
FTC letters warn social media stars about advertising labels
Over the last few months, the feds have slowly turned their attention to the spread of advertising over social media. With a lack of rules and information, celebrity "influencers" paid to push products on their growing audiences haven't had consistent guidelines on how to reveal those relationships. Last year, the FTC pressed brands to educate influencers, and now it has sent over 90 letters to influencers and marketers alike. Those letters indicate that any material connection between an endorser and advertiser "should be clearly and conspicuously disclosed, unless it is already clear from the context of the communication."
FTC complaint blasts Disney, Google over child influencer videos
It's sketchy enough when companies send free products to YouTube stars in return for positive coverage, but it's worse when those videos are explicitly aimed at kids. How is a young child supposed to tell the difference between genuine enthusiasm and someone compelled to say good things in return for gifts? That's what a handful of consumer watchdog groups plan to solve. Campaign for a Commercial-Free Childhood, Center for Digital Democracy and Public Citizen have filed a complaint asking the FTC to stop the practice of aiming influencer videos at kids. Companies like Disney and DreamWorks (via Maker Studios and AwesomenessTV) are allegedly being "unfair and deceptive" by targeting these pseudo-ads at the preteen crowd. Google, meanwhile, purportedly "encourages and benefits" from distributing these videos on YouTube and YouTube Kids.
Klout for Business translates social media influence into big brand power
Your imaginary (and seemingly arbitrary) social media score just got that much more credible -- by the same company calculating it. Klout's launching an offshoot of its influencer index to target businesses, turning individual social media data into metrics companies can use to better their brands. The service, which will continue to rollout into April, will arm big business with info culled from its Perks program (brand feedback provided by Klout's user base), highlighting hot topics, relevant social networks and other intangible "buzz" data so highly sought after by marketers. The sign-up page is live now on Klout's site, so any companies eager to abuse benefit from willfully divulged social data should do so with haste.
