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by kingvash 2121 days ago
Instagram (Facebook) updated their rules in 2016[1] demanding that off platform deals for sponsored content go through them so they get a cut. Sounds like the exact same situation; You aren't allowed to make money via Ads without paying the platform our "fair" cut. News articles suggest Some of this was FTC compliance but Facebook also wanted their cut.

[1] https://www.facebook.com/business/news/branded-content-updat... [2] https://www.theverge.com/2020/2/12/21135183/ftc-influencer-a...

2 comments

Nowhere in the linked post does it mention that Facebook explicitly receive "a cut", nor is that how it works (at least on Instagram). Sure, Facebook as an opt-in label for sponsored content that adds extra functionality (and helps with FTC compliance) but most sponsored influencer content on Instagram doesn't use these tools.
This isn't anything resembling what this FB post says, nor is there anything to indicate it is even talking about content that isn't on FB/Instagram itself.
Drat, I wish I could edit; I meant deals negotiated off platform.

My understanding is it's potentially illegal [1] to pay someone to post and not tag it as being an advertisement. Instagram added new transparency guidelines [2] that require sponsored posts to be created inside their platform [3]

[1] https://www.usatoday.com/story/money/2016/03/15/lord--taylor...

[2] https://business.instagram.com/blog/tagging-and-insights/

[3] https://adespresso.com/blog/instagram-sponsored-posts/

> My understanding is it's potentially illegal [1] to pay someone to post and not tag it as being an advertisement.

Yes, this is absolutely the FCC guideline. But this has nothing to do with FB asking for revenue for off-site advertising (which they don't do).

So this part of your comment:

> "Instagram (Facebook) updated their rules in 2016[1] demanding that off platform deals for sponsored content go through them so they get a cut."

is completely wrong.