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Celebrities and influencers investigated for not labelling social media posts
Date posted on DIARY directory: Tuesday 21st August 2018
The Competition and Markets Authority (CMA), the UK’s primary competition and consumer authority, has published a press release (below) with regards to its investigation into concerns that social media stars are not properly declaring when they have been paid, or otherwise rewarded, to endorse goods or services.
Online endorsements from celebrities and influencers can help brands reach target audiences and boost sales. Where influencers are paid or rewarded to promote, review or talk about a product in their social media feeds, consumer protection law requires that this must be made clear.
If they do not label their posts properly, fans or followers may be led to believe that an endorsement represents the star’s own view, rather than a paid-for promotion.
They are then more likely to place trust in that product, as they think it has been recommended by someone they admire. They might not do so, however, if it was made clear that the brands featured have paid, or in some other way rewarded, the celebrity in return for endorsement.
The CMA has seen examples of posts which appear to:
- Promote or endorse products without clearly stating if the post has been paid for
- Offer the celebrity’s personal opinion on the benefit of a product without clearly disclosing if they are being paid by the brand.
If the CMA finds practices that break consumer protection law, it can take enforcement action.
As part of its investigation, the CMA has written to a range of celebrities and social media influencers to gather more information about their posts and the nature of the business agreements they have in place with brands.
The CMA investigation is considering the extent to which influencers are clearly and accurately identifying any commercial relationships, and whether people are being misled.
As part of the investigation, the CMA is asking the public to share their experiences. The investigation would particularly benefit from hearing from people who have bought products which were endorsed on social media.