ERSP Refers Advertising for Alo Yoga to FTC for Further Review

New York, NY – Oct. 18, 2018 – The Electronic Retailing Self-Regulation Program (ERSP) has referred direct response advertising for Alo Yoga to the Federal Trade Commission (FTC) after the marketer declined to state whether it would comply with ERSP’s recommendations to modify or discontinue certain advertisements.

ERSP is an investigative unit of the advertising industry’s system of self-regulation and is administered by the Council of Better Business Bureaus. The marketer’s advertising came to ERSP’s attention pursuant to its ongoing monitoring program.

The claims at issue included social media posts on Instagram. ERSP questioned whether any material connections existed between the marketer and the numerous individuals promoting Alo Yoga clothing products on Instagram.

These endorsements included pictures and videos on Instagram and comments such as:

  • “Wearing my favorite and most comfortable @aloyoga always!!”
  • “Also, @aloyoga’s summer line just dropped today, and I’m just blown away every season at the new designs and colors. If you ever have any Qs about sizes, fit, style or my faves, lmk! … this outfit is from the new line – top is the Reform bra, and bottoms are the Aura short in Smokey Quartz. The crop sweater is older but a fav.”
  • “Super excited about this new summer @aloyoga bra since I’m now starting to plan my yoga wear around future breastfeeding! 7 more weeks to go!”
  • “Flowing in @aloyoga- (This ripped warrior long sleeve is what I always warm up in :)”
  • “In love with the Smokey Quartz high-waist wrap stirrup leggings by @aloyoga #aloyoga”

The marketer conceded that several individuals named in ERSP’s inquiry are Alo Yoga “ambassadors,” and received free Alo Yoga products and/or other consideration for Instagram posts. During the course of the ERSP proceeding, the marketer said it would voluntarily prepare guidelines for its ambassadors. To date, the company has not revised its advertising to include recommended disclosures.

ERSP determined that Alo Yoga should clearly and conspicuously disclose material connections to influencers, using prominent disclosures and unambiguous language, in accordance with the Federal Trade Commission’s (FTC’s) Guides Concerning the Use of Endorsements and Testimonials in Advertising.

For example, ERSP recommended that the Instagram posts be modified to disclose the material connection between the marketer and the Alo Yoga ambassadors within the first three lines of an Instagram post.

The procedures governing advertising industry self-regulation require marketers to state whether they intend to comply with the terms of an ERSP decision. The marketer in this case did not provide ERSP with a marketer’s statement. As a result, the advertising claims at issue have been referred to the FTC for further review.

 

Subscribe to the Ad Law Insights or Privacy Initiatives newsletters for an exclusive monthly analysis and insider perspectives on the latest trends and case decisions in advertising law and data privacy.

 

 

 

 

Latest Decisions

Decision

National Advertising Division Finds Realtor.com “#1 Site Real Estate Professionals Trust” Claim Supported

New York, NY – November 8, 2024 – In a challenge brought by competitor CoStar Group, the National Advertising Division determined that Move provided a reasonable basis for its claim that Realtor.com is the “#1 site real estate professionals trust.

Read the Decision Summary
Decision

National Advertising Division Recommends Verizon Discontinue or Modify Certain Claims for Satellite-Supported Texting Services

New York, NY – November 7, 2024 – In a Fast-Track SWIFT challenge brought by T-Mobile, the National Advertising Division recommended that Verizon either discontinue certain claims about satellite-supported texting services in remote locations or modify them to disclose the necessary conditions for Verizon customers...

Read the Decision Summary
Decision

Following National Advertising Division Challenge, PetIQ Voluntarily Discontinues Certain Claims for NextStar Flea & Tick Topical

New York, NY – November 6, 2024 – Following a National Advertising Division challenge, PetIQ discontinued certain claims for its NextStar Flea & Tick topical flea prevention and treatment product, which appeared on PetIQ’s website, social media, and third-party websites.

Read the Decision Summary
Decision

National Advertising Division Finds Certain Safety Claims for Drunk Elephant Skincare Products Supported; Recommends Modification of Influencer Posts

New York, NY – November 4, 2024 – The National Advertising Division determined certain Drunk Elephant social media claims regarding skincare products being “safe for kids and tweens to use” were supported, but determined that two TikTok video influencer disclosures for Drunk Elephant's B-Goldi...

Read the Decision Summary