Bet you thought influencers are something new? Influencers are individuals who have authority, knowledge, a position or a relationship that gives them the power to affect purchase decisions of others. Using social media like YouTube, Twitter, Instagram, TikTok and others, influencers will post pictures or videos using a product or service. The goal is to encourage the influencer’s followers to use the same product or service. And if they do, the manufacturer, seller or service provider sees a boost in sales. So those companies compensate the influencer. Despite what you may think, various members of the Kardashian and Jenner families weren’t the first influencers. Actually, one of the first modern influencers was Irene Castle. She and her husband, Vernon, were popular dancers in the early Twentieth Century. They were so popular that Irene became a fashion trendsetter. She was responsible for shorter, fuller skirts and loose, elasticized corsets (goodbye whalebone stays!). She is also credited with introducing American women in 1913 or 1914 to the bob – the short, boyish hairstyle favored by flappers in the 1920s.

Given the relationship between the number of an influencer’s followers and the influencer’s value, it’s no surprise that an enterprising entrepreneur could help influencers increase the number of their followers. Enter Devumi, LLC (“Devumi”) and its owner and CEO, German Calas, Jr. Devumi and Calas used their websites Devumi.com, TwitterBoost.com, Buyview.com, and Buyplans.com to sell fake indicators of social media influence, including fake followers, subscribers, views, and likes to users of social media platforms, including LinkedIn, Twitter, YouTube, Pinterest, Vine, and SoundCloud. Devumi and Calas allegedly sold more than 58,000 Twitter followers, 4,000 YouTube subscribers, 32,000 YouTube views, and 800 LinkedIn followers. The problem, of course, is if the followers are fake, then the influencer’s value proposition is also fake. This ultimately harms the companies that pay influencers as well as consumers.

The Federal Trade Commission (“FTC”) sued Devumi and Calas. The FTC obtained a $2.5 million judgment. Devumi is now out of businesses. The FTC settled with Calas and agreed not to pursue the judgment against him as long as he pays $250,000.00 and never does this again.

WHY YOU SHOULD KNOW THIS. The Devumi and Calas FTC judgment is a cautionary tale for both influencers and the companies that use them. Influencers should carefully vet anyone who promises to increase the number of their followers. Companies using influencers should carefully vet the influencers and insure that they came by their followers in an appropriate way.