From Accountability To Partnership: Why The Creator Economy Needs Industry Self-Regulation
The creator economy – what began as a handful of bloggers and YouTubers monetizing niche audiences – has evolved into a sophisticated, global ecosystem of influencers platforms, agencies, and brands collectively shaping consumer behavior at scale.
Some estimates now place the creator economy at well over $250 billion annually, with continued growth expected to be driven by the democratization of content creation, the increasing fragmentation of traditional media, and frankly, individual results for brands.
With that growth, however, comes a familiar challenge: ensuring that advertising remains truthful, transparent, substantiated, and trustworthy in a landscape that moves far faster than traditional regulatory frameworks were designed to handle.
This gap between influence and understanding presents both a risk and an opportunity for creators and brands, and a risk and an opportunity to consumer trust in the creator economy.
Under such a scenario, brands face reputational risk, platforms face scrutiny, and consumers, ultimately, lose confidence. The plaintiffs bar is also paying attention, with a marked increase in class action claims related to influencers.
It is not surprising then that regulators have taken notice, including state attorneys general. FTC enforcement actions related to influencer marketing may ebb and flow, yet enforcement alone cannot keep pace with the velocity and scale of the creator economy. Nevertheless, the fact remains that millions of creators are producing content daily across dozens of platforms, often in formats that do not comply with FTC rules, as demonstrated by the commission’s action against companies for deceptive and unsubstantiated advertising.
To me, this is where independent industry self-regulation has a critical role to play.
Traditionally, much of this work has operated in what might be called “referee mode.” When issues arise, cases are reviewed, recommendations are issued, and compliance is encouraged. This model remains essential. It provides accountability and helps ensure a level playing field.
But in a creator-driven environment, waiting until after a problem occurs is often too late. After all, content spreads instantly, and a misleading claim can reach millions before it is reviewed. By the time corrective action is taken, the damage – to consumers and to trust – may already be done.
This “shift left” approach recognizes a simple reality: most creators want to do the right thing. They are not intentionally misleading their followers; rather, they often lack clear, accessible guidance on how to comply with complex and sometimes nuanced rules.
What constitutes a “clear and conspicuous” disclosure in a TikTok video? How should affiliate links be presented in a livestream? When does enthusiasm cross the line into an unsubstantiated claim?
The answers to these questions are not always intuitive.
By providing practical, scenario-based education, the industry can reduceunintentional non-compliance and elevate standards across the board. Importantly, this benefits not only consumers, but also the brands, agencies, and platforms that rely on creators to represent them.
The Netherlands’ Stichting Reclame Code (SRC), France’s Autorité de Régulation Professionnelle de la Publicité (ARPP), and the Advertising Standards Council of India (ASCI) are examples of nation-specific bodies that have begun to put in place influencer education, monitoring, and compliance. This global approach is raising the bar for creators around the world.
Now, to help address this need in the U.S. together with several advertising industry associations, brands, and agencies, my organization’s Center for Industry Self-Regulation has launched a Responsible Influence Certification Program. The program is designed to provide creators with a clear, structured understanding of advertising principles, including the FTC’s Endorsement Guides, and how those principles apply in real-world scenarios.
I believe that when creators are educated and empowered to comply, brands benefit from reduced risk. When brands prioritize working with informed creators, agencies can build stronger campaigns. And when platforms support and amplify best practices, the entire system becomes more resilient.
The evolution from referee to training partner and accountability monitor is not a departure from the principles of self-regulation; it is a natural extension of them. By investing in proactive solutions, such as influencer training and certification, the industry can help ensure that creators are not only powerful voices, but responsible ones. Another important component will be the monitoring of those who are trained, as over time that scrutiny will help to foster trust and transparency in the marketplace.
In doing so together, we can build an advertising ecosystem that is not only innovative and dynamic, but also transparent, trustworthy, and worthy of the audience it serves.
Originally published in Forbes
Some estimates now place the creator economy at well over $250 billion annually, with continued growth expected to be driven by the democratization of content creation, the increasing fragmentation of traditional media, and frankly, individual results for brands.
With that growth, however, comes a familiar challenge: ensuring that advertising remains truthful, transparent, substantiated, and trustworthy in a landscape that moves far faster than traditional regulatory frameworks were designed to handle.
The Regulatory Challenge: Influence Versus Regulatory Understanding
Influencers today are not just content creators; they are marketers and brand ambassadors, and, in many cases, their recommendations can drive purchasing decisions as effectively as any traditional advertising campaign, if not more so. But unlike legacy advertising channels, the rules governing influencer marketing – such as the Federal Trade Commission’s (FTC) Endorsement Guides – are often less well understood by the creators themselves.This gap between influence and understanding presents both a risk and an opportunity for creators and brands, and a risk and an opportunity to consumer trust in the creator economy.
The Stakes for Trust in a Creator-Driven Marketplace
At its core, advertising is built on trust. Consumers expect that when a product is promoted, they will receive honest opinions, truthful information, and clear disclosures about any material connections. When that expectation is not met – whether due to undisclosed sponsorships, misleading claims, or ambiguous language – the ecosystem suffers.Under such a scenario, brands face reputational risk, platforms face scrutiny, and consumers, ultimately, lose confidence. The plaintiffs bar is also paying attention, with a marked increase in class action claims related to influencers.
It is not surprising then that regulators have taken notice, including state attorneys general. FTC enforcement actions related to influencer marketing may ebb and flow, yet enforcement alone cannot keep pace with the velocity and scale of the creator economy. Nevertheless, the fact remains that millions of creators are producing content daily across dozens of platforms, often in formats that do not comply with FTC rules, as demonstrated by the commission’s action against companies for deceptive and unsubstantiated advertising.
To me, this is where independent industry self-regulation has a critical role to play.
Moving Beyond the ‘Referee Mode’
For decades, advertising self-regulation has served as an effective complement to government oversight. Organizations such as my own, BBB National Programs, have worked with industry stakeholders to establish standards, review practices and resolve disputes, all to promote truth in advertising.Traditionally, much of this work has operated in what might be called “referee mode.” When issues arise, cases are reviewed, recommendations are issued, and compliance is encouraged. This model remains essential. It provides accountability and helps ensure a level playing field.
But in a creator-driven environment, waiting until after a problem occurs is often too late. After all, content spreads instantly, and a misleading claim can reach millions before it is reviewed. By the time corrective action is taken, the damage – to consumers and to trust – may already be done.
The ‘Shift Left’ Approach: Education and Nuance
One of the most promising developments in advertising industry self-regulation is a growing emphasis on front-end education – equipping creators with the knowledge and tools they need to get it right from the start.This “shift left” approach recognizes a simple reality: most creators want to do the right thing. They are not intentionally misleading their followers; rather, they often lack clear, accessible guidance on how to comply with complex and sometimes nuanced rules.
What constitutes a “clear and conspicuous” disclosure in a TikTok video? How should affiliate links be presented in a livestream? When does enthusiasm cross the line into an unsubstantiated claim?
The answers to these questions are not always intuitive.
By providing practical, scenario-based education, the industry can reduceunintentional non-compliance and elevate standards across the board. Importantly, this benefits not only consumers, but also the brands, agencies, and platforms that rely on creators to represent them.
Global and U.S. Action on Responsible Influence
International advertising self-regulatory bodies across the globe have recognized this issue and identified the highest risk areas for content creators and brands.The Netherlands’ Stichting Reclame Code (SRC), France’s Autorité de Régulation Professionnelle de la Publicité (ARPP), and the Advertising Standards Council of India (ASCI) are examples of nation-specific bodies that have begun to put in place influencer education, monitoring, and compliance. This global approach is raising the bar for creators around the world.
Now, to help address this need in the U.S. together with several advertising industry associations, brands, and agencies, my organization’s Center for Industry Self-Regulation has launched a Responsible Influence Certification Program. The program is designed to provide creators with a clear, structured understanding of advertising principles, including the FTC’s Endorsement Guides, and how those principles apply in real-world scenarios.
I believe that when creators are educated and empowered to comply, brands benefit from reduced risk. When brands prioritize working with informed creators, agencies can build stronger campaigns. And when platforms support and amplify best practices, the entire system becomes more resilient.
Evolution to Training Partner and Accountability
I also believe that meeting this moment requires shared commitment. While government agencies will continue to provide oversight and enforcement, industry must take ownership of its role in shaping behavior – through standards and accountability and, increasingly, through education.The evolution from referee to training partner and accountability monitor is not a departure from the principles of self-regulation; it is a natural extension of them. By investing in proactive solutions, such as influencer training and certification, the industry can help ensure that creators are not only powerful voices, but responsible ones. Another important component will be the monitoring of those who are trained, as over time that scrutiny will help to foster trust and transparency in the marketplace.
In doing so together, we can build an advertising ecosystem that is not only innovative and dynamic, but also transparent, trustworthy, and worthy of the audience it serves.
Originally published in Forbes