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Lord & Taylor in trouble after hiding relationship with social media influencers

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Bloggers required to reveal biz partnerships

This past week, Google advised bloggers to disclose relationships when they were talking about products in exchange for freebies. In addition, when linking back to these businesses, bloggers were advised to add “no follow” links, because these links do not occur organically. In other words, businesses cannot send products to bloggers for free, expecting a link back to their website. It goes against Google’s policies.

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If that isn’t enough to make your business take notice, then you should probably be aware of what happened with Lord & Taylor. In 2015, the retailer sent out 50 dresses from its Design Lab line to “fashion influencers” who were then asked to post pictures of themselves wearing the dress during a specific 2-day period in March.

Lord & Taylor’s social media deception

These influencers were also paid an amount between $1,000 to $4,000. The agreement specified the instructions for referencing the clothes, but did not request that the bloggers identify their relationship with Lord & Taylor. The bloggers posted pictures without disclosing their “paid” promotion. It’s estimated that some 11.4 million saw the posts on Instagram in just 50 posts. None of the posts included an advertising disclosure. In fact, Lord & Taylor reviewed each of the posts before they went up on Instagram, and none of their employees thought to add it.

The FTC chimes in

The Federal Trade Commission determined that Lord & Taylor violated the FTC’s Act concerning prohibition against deceptive or unfair business practices. The FTC essentially sanctioned L&T and the two organizations reached a settlement in which L&T is required to disclose all paid advertising. It’s basically a slap on the wrist, reminding the retailer that it must obey the rules. In an email statement to the Consumerist, L&T denied that the company was attempting to deceive customers. It also stated that they had fully cooperated with the FTC’s investigation.

Reminding businesses to be above board

If you are using influencers as promoters for your business, you need to make sure you’re following the law. Make sure that they are disclosing any relationship, whether you are paying them or just providing free products. It’s good lesson to every business to follow the rules.

#FTCInfluencerCrackdown

Dawn Brotherton is a Staff Writer at The American Genius, and has an MFA in Creative Writing from the University of Central Oklahoma. Before earning her degree, she spent over 20 years homeschooling her two daughters, who are now out changing the world. She lives in Oklahoma and loves to golf. She hopes to publish a novel in the future.

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1 Comment

1 Comment

  1. Tom Augenthaler

    May 19, 2016 at 3:38 pm

    Admittedly stupid on L&T’s part. Also wonder why the influencers didn’t think to post something too?

    I’m forever baffled why brands and influeners don’t post about their relationships with each other. It’s so simple — and honest.

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Business Marketing

How one employer beat an age discrimination lawsuit

(BUSINESS MARKETING) Age discrimination is a rare occurrence but still something to be battled. It’s good practice to keep your house in order to be on the right side.

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Jewel age discrimination

In January, the EEOC released its annual accounting for reports of discrimination in the previous year. Allegations of retaliation were the most frequently filed charge, which disability coming in second. Age discrimination cases accounted for 21.4% of filed charges. As we’ve reported before, not all age discrimination complaints rise to the level of illegal discrimination. In Cesario v. Jewel Food Stores, Inc., the federal court dismissed the claims of age discrimination, even though seven (7) plaintiffs made similar claims against the grocery store.

What Cesario v. Jewel Food Stores was about

In Cesario, all but one of the seven plaintiffs had spent years with Jewel Food building their careers. When Jewel went through some financial troubles, the plaintiffs allege that they began to “experience significant pressure at work… (and) were eventually forced out or terminated because of their age or disability.” Jewel Food requested summary judgment to dismiss the claims.

The seven plaintiffs made the same type of complaints. Beginning in 2014, store directors were under pressure to improve metrics and customer satisfaction. Cesario alleges that the Jewel district manager asked about his age. Another director alleges that younger store directors were transferred to stores with less difficulties. One plaintiff alleged that Jewel Food managers asked him about his retirement. The EEOC complaints began in late 2015. The plaintiffs retired or were fired and subsequently filed a lawsuit against their company.

Age discrimination is prohibited by the Age Discrimination in Employment Act of 1967, (ADEA). The ADEA prevents disparate treatment based on age for workers over 40 years old. However, plaintiffs who allege disparate treatment must establish that the adverse reactions wouldn’t have occurred but for age. Because none of the plaintiffs could specifically point to age as the only determination of their case, the court dismissed the case.

A word to wise businesses

Jewel Food was able to demonstrate their own actions in the case through careful documentation. Although there was no evidence that age played a factor in any discharge decision, Jewel Food could document their personnel decisions across the board. The plaintiffs also didn’t exhaust all administrative remedies. This led to the case being dropped.

Lesson learned – Make personnel decisions based on performance and evidence. Don’t use age as a factor. Keep documentation to support your decisions.

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Business Marketing

in 2021 the EU will enforce ‘right to repair’ for phones and tablets

(BUSINESS NEWS) The EU says NO to planned obsolescence by…letting you fix your own stuff? The right to repair has started to make headway again.

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Right to repair

Not to be a loyalist turncoat about it, but sometimes the European Union comes out with stuff that makes me want Texas to go back to being Mexico, and then back to being Spain.

The latest in sustainability news from across the pond is that in 2021, the Old World is saying no to Euro-trash, and insisting on implementing:

Right to repair laws
Higher sustainable materials quotas
Ease of transfer for replaced items (ie: letting you sell your old phone without the need for jailbreaking anything)
and Universal adaptors for things like phone chargers, and connection cables

Hallelujah!

Consumers worldwide have been feeling the pinch of realizing their (cough cough, mostly Apple brand) technology not only breaks easily, but either can’t be fixed afterwards, or requires costly branded repairs.

The phenomenon has given rise to rogue mobile repair shops, Reddit threads, and renegade fix-it philanthropists like Louis Rossman. And while they certainly HELP, the best thing for a problem is to cut it off proactively. Since companies were making too much money not picking up the slack, the EU’s decided to take the steps to force their hands.

I’m always on my soapbox, but I’ll stack another one on top for this: Planned obsolescence and the assumption that a company has any right to tell you you can’t repair, restore, revamp, or re-home your own possessions are obscene. And to be fair to Apple fans, it’s not just in tech—it’s in damn near everything that’s not meant to be EATEN. Literally.

I bought a STAPLER for a volunteer gig I had. A good, sturdy Staedtler one that I figured would serve the project and continue to stand me in good stead for a while. After a few dozen price tags attached to baggies, the stapler jammed, as staplers do. No worries, you find a knife and wedge out the stuck staple…except I couldn’t. Because the normal slot for that was covered by a metal plate literally welded in place so that I couldn’t perform a grade-school level fix on something I paid for less than 24 hours prior.

Rather than stand behind a product that’s supposed to last, companies, even down to simple office ware, have opted to tinker away to force consumers to trash their current products to buy newer ones. Which I did in the stapler case. A rusty second hand one that didn’t HAVE that retroactive BS ‘Let’s create a problem’ plate on it, meaning no company but the resale non-profit I was helping out in the first place got any more money from me.

Consumers are wising up, and fewer lawmakers are still stuck in the fog of the 90s and 2000s surrounding our everyday machinery. The gray areas are settling into solid black and white, and SMART smart-businesses here stateside will change their colors accordingly.

Now while we’re all still quarantined and hoping for these laws to wash up onto American shores…who has craft ideas for the five-dozen different chargers we all have?

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Business Marketing

Uber Eats waives delivery fees during COVID-19 quarantine

(BUSINESS MARKETING) Uber eats has decided to take a friendly helpful step forward while everyone seems to be quarantined, they have started to waive delivery fees!

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Uber eats

With everything canceled, including dining out for social distancing’s sake, food delivery service Uber Eats is waiving delivery fees in an effort to lessen the financial strain local restaurants are experiencing during the COVID-19 pandemic.

According to the company, Uber Eats has more than 100,000 independent local restaurants on its app. In addition to Uber Eats, Grubhub said it will waive commission fees up to $100 million for independent restaurants across the country.

“As more people stay home, local restaurants need your business more than ever. That’s why we’re waiving the Delivery Fee for all orders from every independent restaurant on Uber Eats—more than 100,000 local restaurants on the app,” the company said in a news release earlier this week.

To find the local independent restaurants on Uber Eats, just look for the EAT LOCAL banner. Delivery fees will automatically be waived, according to this story on Tech Crunch.

Uber Eats is also making it easier for locally run restaurants to get paid faster, offering daily payments rather than the normal weekly payouts, according to Endgadget. Also, the company is giving back saying it will provide 300,000 free meals to health care workers and first responders in the US and Canada.

Not only will waiving fees help restaurants and customers, it’s sound business for food delivery companies. Local restaurants drive roughly 80 percent of business on Grubhub.

“Independent restaurants are the lifeblood of our cities and feed our communities,” Grubhub Founder and CEO Matt Maloney said in a statement published on Endgadget. “They have been amazing long-term partners for us, and we wanted to help them in their time of need. Our business is their business — so this was an easy decision for us to make.”

To limit human interaction Uber Eats and other food delivery services, including Grubhub, Postmates, and Instacart, are encouraging users to select the no-contact delivery method. According to Uber Eats, as is the norm, once packed at the restaurant food items are not touched or opened.

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