Recent SEC enforcement activity sends a message that extends well beyond the financial sector: regulators are increasingly scrutinizing how businesses use marketing, endorsements, and influencers. In a newly issued Risk Alert, the SEC flagged persistent violations tied to advertising disclosures, paid promotions, and third-party endorsements.
Although the alert focuses on regulated investment advisers, the issues identified mirror concerns raised by other regulators, including the FTC and state authorities. The takeaway for businesses across industries is straightforward: modern marketing practices are now a compliance issue, not just a branding decision.
What the SEC’s Latest Risk Alert Actually Found
The SEC’s Division of Examinations recently published a Risk Alert summarizing deficiencies observed during adviser exams. While technical in nature, the findings highlight core marketing failures that are common across industries.
The SEC identified recurring problems in three areas:
- Use of testimonials and endorsements without proper disclosures
- Failure to document and supervise paid promotional relationships
- Misuse of third-party rankings, awards, and reviews
Importantly, the SEC noted that many firms had adopted written policies but failed to implement them in practice — a point that resonates far beyond the investment world.
Why the SEC Is Focused on Testimonials and Endorsements
One of the central themes of the Risk Alert is how testimonials and endorsements are presented to the public.
The SEC found that firms often:
- Failed to disclose whether endorsers were compensated
- Did not clearly explain conflicts of interest
- Relied on hyperlinks or fine print instead of prominent disclosures
From a legal perspective, these issues are not unique to financial services. Across advertising and consumer protection laws, regulators expect transparency about who is promoting a product and why. When paid endorsements appear organic, enforcement risk increases.
Influencer Marketing Is a Regulatory Flashpoint
The Risk Alert also underscores a growing regulatory concern with influencer and referral relationships.
In several exams, the SEC found that firms compensated third parties for promotion but:
- Lacked written agreements
- Did not monitor influencer content
- Misclassified compensation as insignificant
This aligns closely with how other regulators approach influencer marketing. Whether compensation is cash, free products, or other benefits, regulators increasingly treat influencer activity as commercial speech that must be disclosed and supervised.
For businesses, the lesson is clear: informal influencer relationships create formal legal exposure.
Third-Party Rankings, Awards, and Reviews Under Scrutiny
Another area highlighted by the SEC involves the use of third-party ratings and recognitions in marketing materials.
The SEC cited instances where firms:
- Promoted rankings without understanding how they were generated
- Failed to disclose whether participation or payment influenced the rating
- Used outdated or selectively framed accolades
This scrutiny reflects a broader regulatory expectation: businesses must understand and substantiate the credibility of third-party recognition they promote, regardless of industry.
When Marketing Policies Fail to Protect the Business
One of the most significant findings in the Risk Alert is that many firms had policies that were not followed.
The SEC observed:
- Marketing materials published without compliance review
- Employees unaware of disclosure requirements
- No oversight once content went live
From a legal standpoint, unenforced policies can increase risk. During investigations or litigation, regulators and plaintiffs often view policy failures as evidence of weak controls rather than good-faith compliance efforts.
What This Signals for Businesses Beyond Financial Services
Although the SEC’s authority is limited to regulated entities, its Risk Alert reflects a broader enforcement philosophy shared across agencies.
Regulators are increasingly asking:
- Are marketing relationships transparent to consumers?
- Are disclosures easy to understand and hard to miss?
- Can the business show documentation and oversight?
Companies that rely on influencer marketing, testimonials, or promotional claims should view the SEC’s findings as a warning signal, not an isolated development.
How Businesses Should Respond to Heightened Marketing Scrutiny
The SEC’s findings point to practical steps businesses can take to reduce risk.
Align Marketing Policies with Actual Practices
Policies should reflect real-world marketing activity, including influencer campaigns, social media promotions, and third-party endorsements.
Make Disclosures Clear, Direct, and Consumer-Focused
Disclosures should appear where consumers will see them and should not require interpretation. If a disclosure can be overlooked, regulators may consider it inadequate.
Formalize Influencer and Referral Relationships
Written agreements should clearly address compensation, disclosure obligations, and content controls. Informal arrangements are increasingly difficult to defend.
Monitor Marketing After It Is Published
Oversight should continue after approval. Businesses remain responsible for how marketing content appears over time.
How Juris Law Group Advises on Marketing and Influencer Compliance
Juris Law Group advises companies across industries on:
- Advertising and marketing compliance
- Influencer and endorsement agreements
- Disclosure strategy and risk assessment
- Regulatory investigations and remediation
We help businesses align marketing strategies with evolving regulatory expectations before issues escalate into enforcement actions.
FAQ: Marketing and Influencer Compliance
Does the SEC Risk Alert apply to non-financial businesses?
While the rule applies directly to investment advisers, the compliance principles reflect broader regulatory expectations.
Are influencer disclosures required outside financial services?
Yes. Disclosure obligations arise under consumer protection and advertising laws across industries.
Is free product considered compensation?
In many cases, yes. Non-cash benefits can trigger disclosure requirements.
Do businesses need written influencer agreements?
While not always mandated, written agreements are a critical risk-management tool.
Key Takeaway
The SEC’s latest Risk Alert highlights a broader regulatory shift: marketing, influencer, and endorsement practices are now core compliance issues. Businesses that fail to clearly disclose paid promotions, document relationships, and actively supervise marketing activity face growing regulatory and reputational risk — regardless of industry.
