The Rise of Influencer Marketing & What This Means for Consumers

Lilly Grant

Companies have utilized celebrity endorsements to promote their products for centuries.[1] In modern times, brands leverage a celebrity’s image and loyal following to bolster sales. Nike is known to create inspirational advertisements which often rely on professional athletes overcoming adversity.[2] However, Nike is somewhat of an outlier by hiring celebrities whose profession closely aligns to their brand. Many other companies seem to pick somewhat random choices. For example, State Farm Insurance and football player Patrick Mahomes,[3] Aveeno and actress Jennifer Anniston,[4] and Allegiant Airlines and singer Carrie Underwood.[5]

Although celebrity marketing is still popular and effective, most of these endorsements lack credibility and authenticity. Traditional celebrities are seen as untouchable and living an unattainable life, which creates a disconnect with the average consumer.[6] To bridge this gap, thousands of companies began utilizing influencer marketing.[7] Influencers share their flaws, failures, and successes with their followers, creating a seemingly open and trustworthy community. Brands take advantage of this and use the content creator’s credibility to promote their product.

However, the rise of influencer marketing has created a plethora of new problems for consumers to navigate. Although this strategy is used to make product endorsements more authentic, it may have the opposite effect. Depending on the size of the creator, they are paid thousands of dollars to promote products, some of which they do not believe in or have never personally used.[8] For example, TikToker Halley Kate has posted several videos showcasing her Motorola Razr+ cellphone, even though she owns and uses an Apple iPhone.[9]

Other deceiving promotions are harder to spot, especially with the massive amounts of personal relations packages sent to influencers. Brands often send creators free products, no strings attached, with the hope that they will post an “honest review” of the commodity.[10] However, it is misleading to the consumer to see their favorite influencers wearing a certain brand or using a specific product that they received for free.

In 2017, the Federal Trade Commission (FTC) created a series of restrictions and rules in attempt to protect consumers from manipulative influencer marketing tactics.[11] Section 255.1 declares that “endorsements must reflect honest opinions, findings, or experience of the endorser.”[12] However, such a subjective standard is not difficult to meet. A more guideline from the FTC declares that social media endorsement must make a “material connection” obvious to consumers.[13] A “material connection” to the brand includes a personal, family, or employment relationship or a financial relationship, such as monetary payment or free or discounted products or services.[14] This is seen in posts that contain disclosure such as “ad,” “partner,” or “sponsored.” Under this regulation, it is the influencer’s responsibility to make these disclosures and comply with the law.[15]

While this disclosure is an important step in protecting consumers, many influencers do not fully understand their legal responsibilities, and often assume that only the brand would be liable for a misleading advertisement.[16] This is because under traditional endorsement advertising, the brand held liability, were the celebrity was simply promoting the product.[17] One way to protect the consumer is to legally require influencers to use due diligence before endorsing a product. Many content creators do not perform independent research on the legitimacy of a product they promote.[18] For example, when influencers promote a skincare product without verifying it’s claimed benefits, the consumer is misled by the fictious endorsement.[19]  Enforcing minimum due diligence efforts onto influencers before they can publicly recommend a product will help ensure authentic and honest promotions, reducing the risk of deceiving consumers. As advertising methods continue to evolve, increasing awareness of disclosure requirements and stringent enforcement is the best way to protect the consumer and promote responsible marketing.

[1] The first celebrity endorsement dates back to the 1760s when the United Kingdom used royal endorsement to promote pottery and chinaware. Dr. Mohan Dewan, With Great Popularity, Comes Great Responsibility, Am. Intell. Prop. L. Ass’n, https://www.aipla.org/list/innovate-articles/with-great-popularity-comes-great-responsibility.

[2] Ann Binlot, Nike and Serena Williams Inspire Women To 'Dream Crazier' With New Campaign, Forbes (Feb. 28, 2019, 7:00 AM), https://www.forbes.com/sites/abinlot/2019/02/28/nike-and-serena-williams-inspire-women-to-dream-crazier-with-new-campaign/.

[3] Aaron Dodson, ‘A brand in and of himself’: Behind the Strategy that Built Patrick Mahomes into the NFL’s Most Marketable Star, Andscape (Feb. 14, 2024) https://andscape.com/features/patrick-mahomes-nfl-most-marketable-player/.

[4] Taylor Jeffries, Jennifer Aniston Has Used This Now-$10 Body Lotion Since She Was a Teen, InStyle, (Nov. 27, 2023, 3:15 PM) https://www.instyle.com/jennifer-aniston-aveeno-body-lotion-amazon-sale-8407021.

[5] Allegiant Announces Collaboration with Global Entertainment Icon Carrie Underwood, PR Newswire, (Oct. 25, 2023) https://www.prnewswire.com/news-releases/allegiant-announces-collaboration-with-global-entertainment-icon-carrie-underwood-301966531.html

[6] The Shift from Celebrity to the Everyday Influencer, Culture Brands, (Nov. 6, 2023) https://www.culturebrands.co/posts/the-shift-from-celebrity-to-the-everyday-influencer/.

[7] Influencer Marketing Worldwide - Statistics & Facts, Statista, (Dec. 10, 2024) https://www.statista.com/topics/2496/influence-marketing/.

[8] Can We Trust Influencers with Product Endorsements?, Photobiz Growth Hub, (Oct. 8, 2024) https://blog.photobiz.com/blog-post/can-we-trust-influencers-with-product-endorsements.

[9] Halley Kate, (@HalleyKate), TikTok (Aug. 5, 2024) https://www.tiktok.com/@halleykate/video/7399690140307803422.

[10] The Importance of PR Packages, Bost. Univ. Coll. Comm., (Mar. 7, 2022) https://www.bu.edu/prlab/2022/03/07/the-importance-of-pr-packages/.

[11] 16 C.F.R. § 255.0.

[12] Id. at § 255.1.

[13] Id.

[14] Id.

[15] Id.

[16] Influencer Marketing and Endorsement Laws, Fashion L. J., (Feb. 6, 2025) https://fashionlawjournal.com/influencer-marketing-and-endorsement-laws/.

[17] Id.

[18] Can We Trust Influencers with Product Endorsements?, Photobiz Growth Hub, (Oct. 8, 2024) https://blog.photobiz.com/blog-post/can-we-trust-influencers-with-product-endorsements.

[19] Id.