Lord & Taylor dressed 50 influencers in one dress — and never said it was an ad

In March 2015, Lord & Taylor launched its Design Lab line by concentrating every asset on one paisley asymmetrical dress. The chain paid magazine Nylon for a native article and an Instagram post — both reviewed and approved by Lord & Taylor — and paid 50 fashion influencers between $1,000 and $4,000 each, plus the dress, to post photos of themselves wearing it over a single coordinated weekend. The posts reached an estimated 11.4 million users, and the dress sold out.

Nothing about the arrangement was disclosed. None of the approved influencer posts revealed that the dress was free, that the poster was paid, or that the weekend was an ad campaign, and the Nylon content carried no advertising label either. On 15 March 2016 the FTC charged Lord & Taylor with deceptive advertising: paid content presented as independent opinion.

The settlement — a consent order with no monetary penalty — barred Lord & Taylor from misrepresenting paid endorsements as independent and required clear disclosure of any material connection 'in close proximity' to the endorsement, with the program placed under monitoring. A company spokeswoman said Lord & Taylor had taken immediate action once the disclosure problems came to its attention; the FTC's Mary Engle put the standard plainly: advertising must be identifiable as advertising.