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Virtual AI-generated influencers and Vtubers are gaining significant traction in brand partnerships and market value, which has now attracted the attention of federal regulators like the **Federal Trade Commission (FTC)**. The FTC’s updated Endorsement Guides now classify these virtual identities as “endorsers” when they communicate messages that appear as endorsements to consumers. This means that creators behind these virtual influencers must:
1. Ensure the influencers don’t claim personal experiences with products, as they cannot have such experiences.
1. Clearly disclose material connections with brands, going beyond generic hashtags like # endorsement.
1. Avoid misrepresenting the virtual influencer’s attributes.
1. Adhere to brand guidelines and monitor compliance with the FTC’s Endorsement Guides.
India’s advertising regulator, ASCI, set a precedent in 2021 by requiring virtual influencers to disclose that they aren’t real human beings. Platforms like TikTok have also updated their guidelines, necessitating disclosures on synthetic or manipulated content.
In essence, as virtual influencers become more prevalent, the regulatory landscape is evolving to ensure transparency and protect consumers. Brands engaging with these influencers need to be aware of these changes to mitigate potential risks.
https://www.infolawgroup.com/insights/2023/8/11/virtual-influencers-are-now-officially-regulated-endorsersunless-theyre-spokespersons
