FTC Cracks Down on Sponsored Content | Mises Wire

FTC Cracks Down on Sponsored Content | Mises Wire: "Similar to antitrust or anti-dumping legislation, consumer protection legislation is almost never invoked by consumers themselves. Instead, rival producers use it as a tool to stifle competition. Consumers don’t clamor to be “protected” from low prices; rather, inefficient producers demand protection from their more popular competition. "



"Whenever one influencer accepts money in exchange for a positive review, this creates an opportunity for rivals to gain market share by exposing the deceit and then promoting their own, unbiased opinions."



"Regulating disclosure means that aspiring influencers compete at a disadvantage, because beginners typically start with fewer resources and no reputation, and the cost of complying with the FTC’s standards is therefore relatively high. This in turn discourages new entrants to the influence market, which ends up favoring already-established names over new talent."