The FTC is cracking down on brands, not the famous people promoting their products.
Under the FTC Act, a federal law passed in 1914, the government is responsible for preventing dishonest methods of competition in the marketplace, including "unfair or deceptive acts or practices in or affecting commerce."--
The FTC has clear guidelines for cases like this. It suggests individuals who were paid to endorse a product on social media include #Ad or words like "Sponsored," "Promotion" and "Paid ad." It's rare that celebrities follow these rules, however.
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It's not just celebrities either: Some of the biggest fashion and lifestyle bloggers are doing the same thing on Instagram, Twitter and Snapchat.
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These individuals take advantage of a loophole by calling themselves brand ambassadors, rather than offering straightforward disclaimers.
http://www.engadget.com/2016/06/02/celebrities-paid-endorsements-social-media/
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