Lord & Taylor Settles Charges That It Paid 50 Fashionistas On Instagram For Undisclosed Ads

The FTC says the clothing company “deceived consumers” and required the select “influencers” to use @lordandtaylor and #DesignLab in their photo captions.

The U.S. government is cracking down on an increasingly common form of ad infiltrating everyone’s Instagram feed — paid posts. Lord & Taylor agreed on Tuesday to settle charges it paid off prominent Instagrammers to advertise its Design Lab line.

The U.S. government is cracking down on an increasingly common form of ad infiltrating everyone's Instagram feed — paid posts. Lord & Taylor agreed on Tuesday to settle charges it paid off prominent Instagrammers to advertise its Design Lab line.

(Photo by Brad Barket / Getty Images for New York Magazine)

The FTC accused the company of giving 50 prominent Instagram users, known to be « fashion influencers, » a free Paisley Asymmetrical Dress and anywhere between $1,000 and $4,000 each to post a snap of themselves wearing the dress, the Commission said in a statement on Tuesday.

The Instagrammers were contractually obligated by the company to use the Lord & Taylor Instagram handle, @lordandtaylor, and the hashtag, #DesignLab, in the post's caption. The company also pre-approved each post.

Federal Trade Commission, Exhibit C


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