A new report from the National Advertising Division (NAD), part of BBB National Programs, highlights a growing disconnect between consumers and influencer marketing. According to NAD’s findings, consumers place more trust in traditional advertising than in endorsements from social media influencers.
As reported by Adweek, the survey, conducted with The Benchmark Company, collected responses from 3,700 adults aged 18 to 65. While 58 percent of participants said they had purchased a product based on an influencer’s recommendation, 26 percent said they do not trust influencer marketing at all. Only 11 percent said the same about advertising in general.
Transparency Problems Drive Distrust
The research points to a key issue: transparency. Sixty-four percent of respondents said they lose trust in influencers who fail to clearly disclose paid partnerships. Seventy percent said they feel negatively when they discover that an influencer was paid or received free products without telling their audience.
Hashtags such as #ad or #sponsored appear to have limited effect. Fifty-seven percent of consumers said that simply adding those labels does not increase trust. Consumers expect a higher level of honesty and openness about brand relationships.
Jennifer Santos, an advertising law attorney at NAD, noted that while influencer marketing continues to grow, consumer trust is lagging. “The influencer market is thriving, but is consumer trust keeping up?” Santos asked during her interview with Adweek.
Authenticity and Honest Reviews Still Matter
The report also found that 80 percent of consumers distrust influencers they view as dishonest, inauthentic, or lacking transparency. Over 70 percent said they value honesty about brand relationships and want reviews that feel genuine, even if they are critical.
Santos told Adweek that these results should encourage the industry to focus on fairness, honesty, and transparency. “There’s a lot of talk about authenticity, but this data shows that authenticity should mean transparency,” she said.
Legal Action Reflects Consumer Concerns
NAD’s report follows a recent wave of lawsuits targeting influencers and brands. Over the past six months, at least five class-action cases have been filed. These lawsuits allege that consumers were misled into purchases by influencers who did not disclose that their content was paid promotion.
One case targets fashion retailer Revolve, claiming several influencers promoted products without disclosure and failed to mention that Revolve’s pricing was higher than competitors. Another lawsuit accuses Celsius of using undisclosed influencer endorsements to drive up sales and pricing.
Santos confirmed that these cases are becoming more frequent. “We’re learning that more influencers are not making brand relationships clear,” she said.
NAD’s Next Steps: Training and Certification
To address the issue, NAD plans to launch a training and certification program for influencers. The goal is to help creators better understand how to disclose partnerships and build trust with audiences.
This initiative aims to strengthen the industry’s self-regulation and reduce the number of misleading posts. NAD hopes it will also help advertisers and creators avoid future legal risks by improving how influencer partnerships are presented to the public.
