In the article, “FTC's Lord & Taylor Action Shows Perils Of New Ad Strategies,” published in Law360 on March 15, 2016, Lord & Taylor reached a settlement with the Federal Trade Commission over charges that the retailer didn’t make clear that it paid for an article in a fashion magazine promoting its clothing collection. Lord & Taylor was also accused of not properly disclosing that it compensated social media influencers as part of a marketing campaign. The settlement prohibits Lord & Taylor from misrepresenting that its paid commercial advertising is from an independent or objective source and prohibits the retailer from misrepresenting that an endorser is an independent consumer. “The proposed Lord & Taylor order includes key disclosures that must be included in such posts and requires the retailer to implement a system to monitor and review the representations of its influencers, steps that other similarly situated businesses would be wise to implement,” Lustigman said. The action is consistent with the FTC’s enforcement guidance in this evolving area.
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