PEP - FTC hits beverage lobby with warning letter over use of social media influencers

2023-11-15 13:37:37 ET

The Federal Trade Commission has issued a warning letter to the American Beverage Association over its use of social media influencers to tout the safety of the sweetener aspartame.

The agency alleges that posts on Instagram and TickTok made by several dieticians or those promoting dietary advice regarding aspartame were made without those individuals disclosing their relationship to the trade association. The FTC also alleges that the ABA paid the influencers for the posts.

"The FTC's Endorsement Guides state that if there is a 'material connection' between an endorser and the marketer of a product -- in other words, a connection that might affect the weight or credibility that consumers give the endorsement -- that connection should be clearly and conspicuously disclosed, unless the connection is already clear from the context of the communication containing the endorsement," the letter to ABA President and CEO Kevin Keane read.

The letter goes on to question the adequacy of disclosures in many of the posts.

Warnings letters were also issued to The Canadian Sugar Institute and 12 individuals who made social media posts.

ABC members include Coca-Cola ( NYSE: KO ), PepsiCo ( NASDAQ: PEP ), Keurig Dr Pepper ( KDP ), Monster Beverage ( NASDAQ: MNST ), Celsius Holdings ( CELH ), and Nestle ( OTCPK:NSRGY )( OTCPK:NSRGF ).

For further details see: