"Can we stop with the lies?"

The Federal Trade Commission’s landmark ban on deceptive UGC ads and influencer posts—with a $43K fine per violation—didn’t come out of nowhere. It was a direct response to the flood of misleading AI-generated UGC ads saturating social media.

🔥 One viral example (Feb 5) of the deception fueling the crackdown:

@BowTiedTikTok:
"Anyone can do 4K/day with sweeps/affiliate. The creators below are 100% AI. Comment “UGC” and I’ll teach you how to grow faceless Instagram pages (must be following)."

💬 Cue hundreds of "UGC" comments flooding in…

🚨 The callout:

@bradenbt:
"Can we stop with the lies? Even if this is true, it’s not from this page. This page performs well but not even close to the claimed numbers (I’ve seen the backend and work with the creator). Praying for less predatory marketing and AI UGC in 2025."

The FTC saw too much of this—and stepped in announcing its final ban and $43k fine per violation in August 2024 which went into effect in October 2024.

But the real issue isn’t just the FTC ruling. It’s what comes next.

💥 Class action lawsuits.

⬇️ Exhibit A: A lawsuit against deceptive influencer marketing.

Consumers who feel deceived now have a clear legal precedent to go after brands. The FTC fine isn’t just a penalty—it’s ammo for lawsuits. And if there’s one thing class actions thrive on, it’s brands leaving a paper trail of deceptive marketing practices.

The challenge now? UGC and influencer marketing is still the backbone of modern advertising. But the lines between organic content, paid promotions, and outright deception have never been blurrier.

As enforcement ramps up, the question isn't if brands need to adapt—it’s how soon.

🔍 ICYMI: Net Influencer just called SwayID “The ‘Seatbelt’ For Safeguarding Influencer & UGC Marketing In Times Of Trust Crisis”

Why? Because “set-and-forget” policies and airtight influencer contracts are no longer enough. Brands need continuous proof that they’re making diligent efforts to keep their UGC ads and influencer content trustworthy.

🦺 That’s where SwayID comes in.

Kaeya