When #Ad Is Not Enough

Kim Kardashian has recently settled charges leveled against her by the Securities and Exchange Commission (SEC) in connection with her promotion of cryptocurrency tokens offered by EthereumMax (EMAX Tokens). Back in June of last year, Kardashian posted an Instagram story “sharing what my friends just told me about the Ethereum Max token!”. And although Kardashian included “#ad” in her Instagram story, the SEC charged her for failing to adequately disclose that she was being paid to promote the EMAX Tokens as a security.

Influencer marketing has become increasingly prominent over the past decade, in many ways supplanting traditional advertising when it comes to attracting younger, more digitally oriented consumers. With that increased prominence has come increased scrutiny by U.S. regulators, most frequently, the Federal Trade Commission (FTC).