The Kardashians could be in big trouble, as in prison, if they don’t tone down their online marketing practices.
It’s common knowledge that Kim Kardashian and her family are often found promoting a new product on Instagram, a new report has come out claiming that they are in fact breaking the law by hocking their goods on social media.
The reality TV family everyone loves to hate makes A LOT of money on the internet thanks to their uber famous image and brand – hundreds of thousands of dollars per post to be precise.
However, a new report by MediaKix has revealed that 93 percent of celebrity-sponsored posts on Instagram violate the U.S. Federal Trade Commission guidelines.
The purpose of these guidelines is to prevent deceptive marketing practices and maintain a competitive market.
To comply with the law, celebrities who promote goods on their Instagram should indicate that they have in fact been paid to do the post, so they MUST hashtag any product promotion with “#sponsored” or “#advertisement” to be legal. Taking shortcuts like #ad or #sp won’t suffice.
The Kardashian family is probably the worst when it comes to avoiding these laws, while they do hashtag SOME posts with the required signage, they seem to forget all the other businesses they own, like Khloe Kardashian’s Good American jeans brand, a giant egg of gold spoons by luxury brand Christofle or her collaboration with Protein World. She failed to included either FTC hashtag in both posts.
Whether we like it or not, the Kardashians are influencers, and they have serious clout in the online marketing game. Yet they seem to not acknowledge the responsibility that comes with such a title. Kylie promoting a Lamborghini Roadster SV in several previous posts but once again failing to include the required wording.
It’s unfair to fellow businesses who follow these requirements and can’t afford the $40,000 fines and lawsuits slapped on them for forgetting to hashtag as the Kardashian’s do.
While they break the law, they also monopolise products and take away money from smaller businesses. Typical.
The penalties for these violations include thousands of dollars and possible freezing of their assets. If push comes to shove, they could even be held up against the Sherman Act which outlaws any “monopolisation, attempted monopolisation, or conspiracy or combination to monopolise,” according to the American Federal Trade Commission website. This punishment can come with a prison sentence of 10 years.
The Kardashians better be careful with how they wield their Instagram power from now on. Maybe this is the key to making them go away for good.