Lord & Taylor Settles FTC Charges in Faux Fashion Posts

What's Hot


The Most Sinful City in the U.S. Is … (Hint: It’s Not Vegas)Family

How a Mexican Tariff Will Boost the Cost of 6 Common PurchasesFamily

This Free Software Brings Old Laptops Back to LifeMore

How to Protect Yourself From the ‘Can You Hear Me?’ Phone ScamFamily

Report: Walmart to Begin Selling CarsCars

Where to Sell Your Stuff for Top DollarAround The House

Is Your TV Tracking You? Here’s How to Tell — and Prevent ItAround The House

11 Staging Tips to Help You Get Top Dollar When Selling Your HomeAround The House

21 Restaurants Offering Free Food Right NowSaving Money

20 Simple Hacks to Make Your Stuff Last LongerAround The House

4 Car Insurers That Might Raise Rates Even When the Accident Wasn’t Your FaultCars

How to Invest If Trump Kills the ‘Fiduciary Rule’Grow

12 Surprising Ways to Wreck Your Credit ScoreBorrow

9 Secret Ways to Use Toothpaste That Will Make You SmileAround The House

The 2 Types of Music That Most Improve Dog BehaviorFamily

The government considers the luxury retailer's marketing campaign -- including a paid article and Instagram posts that were not labeled as advertising -- to be deceptive.

Luxury department store chain Lord & Taylor has settled Federal Trade Commission charges that it deceived consumers by trying to pass off paid ads as objective editorial content.

The retailer supplied 50 online “fashion influencers” with a free dress, then paid them between $1,000 and $4,000 each to post a picture of themselves in the dress on Instagram with a caption that included [email protected] and #DesignLab, according to the FTC.

Lord & Taylor did not require the fashion bloggers to disclose that the company provided them with compensation for the post.

Lord & Taylor also failed to disclose that an online article that appeared in Nylon, a pop-culture and fashion magazine, was actually a paid endorsement, not an unbiased article.

The retailer’s online marketing campaign violated the Federal Trade Commission Act’s mandate barring companies from engaging in unfair or deceptive marketing.

“Lord & Taylor needs to be straight with consumers in its online marketing campaigns,” Jessica Rich, director of the FTC’s Bureau of Consumer Protection, said in a statement. “Consumers have the right to know when they’re looking at paid advertising.”

Lord & Taylor maintains that it responded as soon as it realized there was a problem with its ads.

“A year ago, when it came to our attention that there were potential issues with how the influencers posted about a dress in this campaign, we took immediate action with the social media agencies that were supporting us on it to ensure that clear disclosures were made,” Lord & Taylor spokeswoman Molly Morse told USA Today.

The FTC says the settlement, which is subject to a 30-day comment period, prohibits the retailer from “misrepresenting that paid commercial advertising is from an independent or objective source.” It also establishes a monitoring and review program for the retailer’s endorsement campaigns.

Have you ever been swayed by advertising that you thought came from an objective source? What do you think about the FTC’s settlement with Lord & Taylor? Share your comments below or on our Facebook page.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!

💰🗣📰

Read Next: A Way to Master Income Taxes — at Last — and Save Money

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,792 more deals!