**The Federal Trade Commission (FTC)** has updated its guidelines on endorsements in advertising to cover virtual influencers. This move acknowledges the growing trend of using hyper-realistic virtual endorsers in brand promotions. The FTC’s updated “Endorsement Guides” now categorize “endorsers” as entities that appear to be individuals, groups, or institutions, encompassing both real and virtual figures.
Key Considerations for Brands Using Virtual Influencers:
1. **Authenticity**: Ensure the virtual influencer aligns naturally with the product or service.
1. **Scarcity and Exclusivity**: Understand the virtual influencer’s content volume and specify exclusivity terms in contracts.
1. **Disclosures**: Be transparent about the virtual nature of the influencer and their connection with the brand.
1. **Endorsement Language**: Use realistic language that doesn’t imply human experiences for the virtual entity.
1. **Claim Substantiation**: Ensure claims made by virtual endorsers reflect real consumer experiences.
1. **Approvals and Monitoring**: With virtual influencers, content preapproval is easier, but monitoring remains essential.
1. **Intermediary Liability**: The guidelines hold agencies and other intermediaries accountable for content and disclosures.
1. **Child-Targeted Advertising**: Extra caution is advised when targeting minors with virtual endorsers.
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