Eat, Pay, Love!

A story of how food influencers are committing legal fraud

Editors Note: This piece was not written by me, aka, Michael Nagrant. I am not saying this to distance myself from the piece. I am publishing the work of another writer and I want that writer to have the credit they deserve.

I have often felt that I’m a minority voice fighting a losing battle in my criticism of pay-for-play food influence, so it was incredibly heartening that another person felt as strongly as I do that social media creators performing unethically was bad for our culture, bad for the consumer, bad for restaurants (long term), and ultimately as we’ll establish, often illegal.

I want to thank the writer, Earnest Graham, who had the courage to call lawyers and navigate the social marketing muck while producing such a clear-eyed well-researched reporting piece on how broken pay-for-play content creation is.

Graham is not a Gen Xer like me. It’s easy to dismiss one voice, but when a member of the generation so actively engaged in these things sees an issue, it suggests that there’s a real truth to the criticism.

Graham believed this piece should not be behind a paywall because the information is too important to hide. As a writer who has seen free content threaten the viability of a free press, I wasn’t so sure. I had planned to run this work behind a paywall and then open it up for free a few days later, because I do believe important information should ultimately be free. Graham wrote the piece and I respect his point of view which is why it’s available for everyone.

That being said, there is a cost to this work. I paid Graham. I did not pay Graham as much as I believe he deserves because I’m a one man band with limited resources. Work like this does not happen entirely out of the ideals of a person’s soul no matter how pure that person is.

If you read this for free and you believe work like this should be supported and you want to see more of it, please consider a paid subscription.

If you don’t want to subscribe, but you still want to financially support work like this, you can pledge support of The Hunger via Venmo or Paypal.

Thank You For Reading,

Michael Nagrant

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Come with me to a hidden gem in Chicago’s West Town, where executive chef and owner Joe Blanc is creating some of the city’s most innovative dishes at a new restaurant called Sagi. The menu at Sagi blends flavors and techniques from various cultures and highlights the finest ingredients their purveyors can procure. Sagi challenges its guests to think more about what is on their plate, with innovative flavor pairings. Sagi is an exciting new addition to the Chicago dining scene, except for one small issue:

Sagi isn’t real.

What is real, however, is the story of how a couple dozen influencers almost entered into a business relationship with a restaurant that never existed.

You have probably spent the last few years in the world of food seeing an increasing number of what we now know as influencers; content creators that make social media posts which promote their experiences at various restaurants and events. These influencers have amassed follower counts ranging from tens of thousands to millions, making them powerful voices unhindered by editors or oversight.

Food influencers often portray themselves as reliable sources for restaurant recommendations, their endorsement is highly sought after by local restaurants seeking to advertise their menus. This is different from when your favorite comedian’s podcast promotes stamps.com because in that case, you know immediately what the relationship is between that comedian and stamps.com.

The perception that people have is that most people that are online do have a vague understanding that many of these influencers may have not had authentic experiences. Whether that be a free meal, a red carpet treatment once they are sitting down, or actually receiving financial compensation for their posts. An honest review is one thing. An ad is another. If an influencer presents an ad as an honest review, meaning they don’t disclose the business relationship, then they have committed advertising fraud.

With the way influencers typically operate, consumers have no way of parsing which content they view represents a creator’s real-life experiences and which represents their business affiliations.

We’ve all seen an influencer take a bite of food, roll their eyes into the back of their skull, softly moan, and then declare that you need to get over here right now to try the new dish at a yet-to-be-discovered shop. The next day there’s a line down the street. But what if the influencer didn’t “discover” that dish. What if they didn’t even like it, but they said they did anyway because they were being compensated?

The FTC has created guidelines to protect consumers from this fraud, however, these guidelines have gone largely unenforced. In order for an influencer to be found guilty of fraud, it would first need to be proven that they received compensation (whether monetarily or just a free meal) from a restaurant. As the beneficiary of the influencer’s endorsement, a restaurant would never out themselves - nor the influencer - of soliciting fake reviews.

All of this legal jargon circles us back to Sagi, a completely fabricated restaurant. My goal was to find out how much these influencers were charging, if their reviews were honest, and which influencers were making authentic content. As far as I could find, there is not a single influencer that has public rates for what they charge for content and that was not information that they were willing to disclose to journalists, hence the need for Sagi.

Since many influencers have chosen to break the law by creating content without any disclaimers, they also likely wouldn’t disclose to a journalist exactly what they are willing to do and say for money. While it’s a controversial tactic, I believe the need for consumers to know how food creators really operate justified the decision to go undercover as the owner of Sagi.

I found 48 influencers in the Chicago area with over 10,000 followers that primarily focus on restaurants and sent each of them the following email:

“Hello!

I’m reaching out on behalf of Sagi, a new restaurant opening soon in Chicago’s West Town neighborhood. We’ll be serving elevated American cuisine in a stylish and welcoming setting, and we’re looking to partner with a few select local creators to help us build excitement around our opening.

We’d love to explore a potential collaboration where you visit Sagi, enjoy a curated experience, and create content to share with your audience. Could you please share your current rates for a dedicated post or story (Instagram, TikTok, or both), and let us know:

• What’s typically included in your content package?

• Do you offer any guarantees regarding tone or messaging (i.e., a positive representation of the experience)?

We’re really focused on building long-term relationships with local creatives, so if this sounds like a fit, we’d love to chat more.

Thanks in advance, we are looking forward to hearing from you!

Best regards,
Joe Blanc*
Owner”

Many influencers were reasonably skeptical of a restaurant opening with no social media, no website, and an owner that nobody had heard of (because he didn’t exist). Eventually, an Instagram page was made for Sagi, as a method for following up with influencers that didn’t respond to the email. Sagi also has a very realistic menu to go along with its poorly conceived AI logo that was put at the end of the emails and in the Google account profile picture.

A few of the influencers requested that they see the menu before telling me what their rates were. I reached out to one of the best chefs in Chicago for help and he graciously created one.

Sagi’s opening menu:

The following influencers did not respond to the initial email, follow up email, nor an Instagram message:

Siblingsthateat, chicagofoodfanatic, midwestfoodiegirl, Did_u_drool, Chitown_foodies, Hausofheidior, Chidochicago, Bestfoodalex, Chicagofoodiegirl, Lavishfoodlife, Chickpeainthecity, Chicityfoodie, Everythingchele, Coriinthecity, Chicagoismyboyfriend, Chicagofoodgirl, Lifewithashleyann, Hangry_chicago, Fabfoodchicago, 312food, and chicago.by.ren

Of the 27 influencers who responded, only three refused partnerships outright:

• Steve Dolinsky (34,800 followers): “Hi Joe, I no longer work in journalism. Best of luck.”

• The Kittchen (47,800 followers): “While I’d love more information about Sagi, I don’t take on partnerships with restaurants.”

• A Girl About Chicago (98,200 followers): “I’m not taking on new restaurant partnerships at this time.”

Here is the data for the 24 influencers that did reply saying that they would be open to partnering with Sagi in exchange for monetary compensation. There appears to be a loose correlation between follower count and cost. The influencers were also asked if they would guarantee positive messaging, even if they didn’t like the meal, but this distinction ended up being irrelevant in the eyes of the FTC.

Chicagofoodauthority overlaps with chrisdoloeats on this graph. They both quoted Sagi $1500 for a post.

This data shows the current relationship between content cost as a function of follower count, with some outliers. Please also note that Kel Eats Chicago as well as Eats With Seth did not set a price but both asked for a comped meal. Kel said explicitly that they only required a comped meal while Seth said he would accept any price that Joe thought was fair. They were placed at $0 in this data as it would be unfair to ascribe dollar values to these responses.

Please also note that every influencer has different content packages that come with these prices ranging from just an Instagram post to others offering Instagram reels, TikToks, Instagram stories, and Google reviews (we’ve published some at the end of this article). The lowest number that included an Instagram reel was used for this data set.

The influencers were also asked if they would guarantee positive messaging, even if they didn’t like the meal. While this distinction ended up being irrelevant in the eyes of the FTC for establishing whether fraud was committed, we will discuss those outcomes a little later.

Before this project began, I tried to understand what the law, and more specifically the FTC says about advertising fraud that pertains to influencers and social media. The FTC is an independent agency of the American government that focuses on civil antitrust law as well as consumer protection, the latter of which is the focus of this article.

It is easy to understand why influencers have been able to so blatantly and frequently break the FTC guidelines, as the only people that could have visibility into the fraudulent activity of influencers are the restaurants hiring them for their work. That is, unless someone decided to create a fake restaurant to reach out to the influencers individually asking them if they would put it in writing that they were breaking the law.

In recognizing that I am not a legal expert in social media and influencer law, I decided to reach out to someone who is. The law firm Hendershot Cowart P.C. in Houston, TX, which lists social media and influencer law as one of their focuses, graciously lent me some of their time to pick the brains of a lawyer about what the law actually says and what the consequences are for those who break those laws. They not only responded to the request but made available one of their attorneys, Philip D. Racusin, who agreed to sit down for a Zoom interview.

The biggest takeaway from the call with Racusin relates to a preconceived notion that it was important to make the distinction of whether or not the influencer would make the delineation of guaranteeing a positive post, even if they did not enjoy their meal. However, in the eyes of the FTC, it is actually equally as egregious to agree to only post if they enjoyed the food, granted that they have not disclosed that they have received compensation, whether it be monetary or just a free meal.

To be more explicit, if you are an influencer and have made content promoting a restaurant and were provided a free meal for doing so, you must disclose that in your content. The FTC Act requires influencers to clearly disclose any “material connection” with an advertiser — whether that’s a free meal or payment — in a way that’s hard to miss and easily understood, Racusin explained. If the influencer agrees to only post the meal if they liked it, the restaurant is not paying for their honest review, they are paying for a contingent positive post.

The overwhelming majority of the influencers that were reached out to have never made a post where they disclosed that their meal was comped or that they received some type of monetary compensation. It is possible that they have never taken a free meal or got paid in the past, but that they have detailed rate sheets would suggest otherwise.

It’s also possible that the 24 who did respond to the idea of collaborating, even if they hadn’t disclosed in the past, would have done so on a post about Sagi. However if they hadn’t disclosed properly in the past, it is a fair assumption, though not a guarantee, to assume they likely wouldn’t have in the Sagi case as well. That being said, amongst those influencers that had made some type of disclosure in the past, many of those attempts are still not sufficient in the eyes of the FTC.

For example, some influencers have begun posting “#ad” in their descriptions of their Instagram reels which can be okay if it is up front and not shrouded by a cloud of other hashtags that obfuscate the disclosure. Others have used hashtags that are more vague and not explicitly sharing what the relationship is between them as the endorser and the advertiser. Some examples of these vague hashtags include #invited, #thankyou, #sp, #spon, #collab. These examples do not satisfy the FTC legal guidelines.

Violations can carry civil penalties up to $53,088 per incident. The FTC usually issues warning letters before fines, but if influencers ignore them, they can face steep financial consequences. According to the FTC’s own FAQ, “If concerns about possible violations of the FTC Act come to our attention, we evaluate them case by case. If law enforcement becomes necessary, our focus usually will be on advertisers or their ad agencies and public relations firms.”

Action against an individual endorser might be appropriate in certain circumstances – for example, if the endorser hasn’t made required disclosures despite warnings. However, if after receiving the letter, the influencer does not remove the post or add the necessary disclosures, they could then be subjected to the fines.

There have already been two huge class action lawsuits that have gone after influencers earlier this year for not disclosing their relationships when promoting the brands of Shein and Celsius, seeking damages of nearly half a billion dollars in each case.

I am not interested in putting any influencers cited in this article into financial ruin by exposing explicit individual proof that many are committing advertising fraud, although I believe a great many of them are.

I am, however, very interested in doing what we can to protect the restaurants in our community who are already being pinched and squeezed in so many directions. We must also protect the consumers who unknowingly are relying on advertisements to make choices with their own wallets, under the belief that they are consuming authentic content.

Even though I’m not explicitly proving or identifying the actions of the individual influencers cited in the graph above (the only way to do that would have been to pay them and see what they posted) one of the most interesting takeaways from this experiment is how many of these influencers were willing to either guarantee or hedge that they would have a positive experience.

Here are the anonymized quoted responses from influencers who agreed to collaborate in return for pay or a free meal when I asked them if they could guarantee positive content. Each quote below represents a different influencer. You could debate whether these actions are fraud, selective criticism, or even overt positivity, but what’s certain is that 20 of the 24 influencers have confirmed they do not serve their followers with any real form of objectivity.

“My standard content package is $2,500 for a video that is posted across my TikTok, Instagram Reels, and YouTube Shorts channels, plus a few Instagram stories. I do not ever post any negative content about any restaurant, so the video would be focused on what makes the restaurant positive and unique. I’d especially want to focus on that final point: keying in on the differentiation tends to work the best for videos like this.”

“We can call it off if I didn’t like the experience.”

(Editors Note, this influencer did not say they would refund our money in this case)

“I can guarantee I would not post anything but a positive review - if, on the off chance, I did not like the experience/food, I would be honest with you and call it even. No payment and no video, so no one loses and no hate is posted online. This is extremely extremely rare!”

“As far as tone/messaging, I only post about positive experiences so unless something went horribly wrong you can be guaranteed a post. :)”

“While I can’t guarantee “positive” messaging in a contractual sense, I only partner with restaurants and brands I’m genuinely excited about, so the content is always thoughtfully curated to showcase what makes your space special.

If you’re looking for long-term collaborations, that’s very much aligned with how I like to work, and I’d be happy to chat about how we can tailor a bundle package for that.

Looking forward to hearing your thoughts!”

(Editors note: This person can’t guarantee it but they are also dangling a bundle of work in what feels like a sly quid pro quo)

“I won’t post anything without your review first if that works !!! I usually don’t do bad reviews but if is the case I write you my concerns and we can figure out.”

“I’m sure (redacted) and her family will love the food, but she will always share the positive aspects of her experience. She would never intentionally share anything negative -- we would always bring it to you before so we could resolve it. But transparently, that’s never happened :) (Redacted) is great to work with and local spots love her. She is always happy to send content and captions for review before sharing.”

(Editors note: some of these influencers have agents negotiating on their behalf)

“For something like this, I would post an Instagram Reel, 3-5 Instagram stories and a Tiktok and charge $200.

I never speak poorly of restaurants because even if I didn’t have the best experience, it doesn’t mean someone else will also.”

“If I didn’t like it, I would just give you your money back and/or pay for the meal. I would not go through with a positive post if I didnt like it.”

“My current rate for a dedicated post, which includes 3-5 Instagram story frames and 1 Reel crossposted to Tik Tok for $500.

I always keep a good and positive tone on my videos. I make sure to highlight the dishes that I genuinely loved, the place and ambiance. I am open to discussing a long term partnership with you…”

“I’m not in the business of tearing hard working businesses down so you do not need to worry about that.”

“Congrats on the new restaurant, would love to work with you! Our current rate is $250 for a post across all platforms including Instagram, TikTok, and YouTube (over 50k+ followers/subscribers). We always highlight the positives from our experience with the restaurants we collaborate with!”

“While I cannot guarantee the tone based on my experience beforehand, it is never my intention to disparage or harm a business with my content. Said another way, I don’t bash restaurants in my content; however, I will not use false statements that don’t align with my actual experience as I have a follower base that trusts my opinions. Happy to discuss further!”

(Editors note: arguably the most principled of the influencers we spoke to, but also still concerning that pay is being exchanged and thus there is an incentive to convince oneself they will find something positive whether it truly is or not)

“Absolutely! I’ve never posted anything negative. I’ve also never had a super terrible experience anyway to garner that. I worked in hospitality for 15+ years. Restaurant/bars all through HS and college, then worked in luxury hotels for a decade as a Director of Catering and Events. You can’t surprise me with anything bad ha!

I know things might go wrong but would never say negative things. :)”

“I really doubt I won’t love it given the menu you showed — but my philosophy is I don’t make a post if I don’t like a meal. My preference is to only post meals I like and not to hurt anyone’s small business, so in the rare occasion I don’t like something, I’ll choose not to post and will share feedback privately on why — so you have my word that’s how I’d handle it.”

“First off, congratulations on your new restaurant! Openings can be stressful, but so exciting. My rate for a restaurant promo video with 3 static stories + content posted within 7 days of visiting the restaurant is $350 plus food and gratuity for the server included for my visit. As for tone, if my visit is unpleasant (which I have never had happen!) then I would not take payment, but would also not post.”

“I have a small business rate of $600 for the content you want across all my platforms.

If something occurred that was just awful and not aligned to my standards, I just wouldn’t post it and we could null the agreement. I wouldn’t want to promote it and you wouldn’t either. However, that has never happened before in a paid collaboration.”

(Editors note: It is interesting how many of these influencers have never had a bad meal.)

I cannot guarantee that I will enjoy the experience, so I always say if I didn’t have a good time that I will just not charge for the Reel and not talk about it on my page or we can try a redo experience.

“We just wouldn’t post about it if we don’t like the meal.”

“For a visit, positive review including an Instagram Reel & Stories highlighting the experience, plus if you want a Tik Tok video as well, my rate would be $400. Please let me know if that would fit in your budget for this.”

It’s no mystery why so many restaurants, where every dollar counts, would lean first towards influencers as a marketing strategy. Why pay for PR when you can spend less money on influencers and get an even bigger return? In some cases, you might not have to spend anything beyond the food cost of giving the influencer a free meal. Not participating means being behind every other restaurant that decided to leverage paid influence. There’s no winning for the restaurants.

While we can’t guarantee that all of these influencers given free meals subsequently committed fraud according to the FTC rules I’ve outlined, in the instances I am personally aware of, the influencers did not make the proper disclosures.

If an influencer claims that they gave the rate but much of their content is authentic unpaid visits to restaurants, how could their audience ever trust them if they don’t know which content is genuine and which content is paid promotion? We should be asking influencers these questions.

Not all influencers are bad actors, and this isn’t a call for a witch hunt, which is why this article isn’t attributing each influencer to their quote above. However, many influencers are at best confirming that they are not serving any of their followers an ounce of objectivity and at worst are committing fraud. Consumers deserve to know which posts reflect genuine reviews and which are paid ads.

The current landscape gives consumers nothing to parse out which post is which but hopefully we can work towards a better future with more honest and transparent content creation, a future where the quality of the food can have a stronger impact than a restaurant’s marketing budget, a future bereft of fraud.

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*Japanese-speaking readers might have picked up that Sagi is the Japanese word for fraud. The owner of Sagi, Joe Blanc, is also an homage to Francois & Joseph Blanc, two French brothers that are notable for pioneering telecommunications fraud, in the 1830s.

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Below are the rate sheets that the influencers provided to me so that the reader can get a sense of what these look like and what the restaurants receive when they are being pitched to pay these people for content. None of the influencers solicited in this project have made these publicly available, however, I only included contact information that is publicly available. Many of the rate sheets appear to be made by the same person leveraging the same template.

Sergelato’s rate sheet below. You may remember him from this Hunger article.