Revolve is facing a class-action lawsuit over undisclosed paid partnerships with influencers, misleading consumers about the nature of endorsements. This lawsuit follows similar actions against other brands like Shein. Notably, Revolve had previously acknowledged potential risks regarding such legal issues in its 2023 financial report, recognizing the impact of regulatory compliance. Experts emphasize the importance of clear and conspicuous disclosures, asserting that simply using labels like '#ad' in captions is insufficient. Proper disclosure should be prominent and unavoidable, ensuring consumers understand the nature of influencer collaborations.
Disclosures should be prominent, easily understandable and in close physical proximity to all comments by the endorser and the sponsor.
Revolve's acknowledgment of the risks in influencer marketing highlights an often-overlooked responsibility brands have toward transparent advertising.
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