There’s a global discussion taking place around whether celebrities and influencers are doing enough to make it clear that they’re being paid to promote a product on social media; and now UK watchdog the Competition and Markets Authority (CMA) is launching an investigation.
The CMA revealed today that it has written to a number of (undisclosed) high profile influencers to find out more information around their potentially sponsored posts and relationships with the brands they speak of.
Under current advertising guidelines – in Australia, too – an influencer needs to make it clear that they have received payment or product in exchange for social posts. Speaking with Cosmetics Business, CMA Consumer Protection director George Lusty said: “Social media stars can have a big influence on what their followers do and buy.
“If people see clothes, cosmetics, a car or a holiday being plugged by someone they admire, they might be swayed into buying it. So, it’s really important they are clearly told whether a celebrity is promoting a product because they have bought it themselves, or because they have been paid or thanked in some way by the brand.”
Similar action was recently taken in the US when the Federal Trade Commission investigated multiple celebrities – including Naomi Campbell and Vanessa Hudgens – around their social media posts around brands.
In Australia the guidelines are simple: advertising, paid plugs and product placement must be clearly distinguishable from other content. The full Australian Association of National Advertisers (AANA) guidelines to #SponCon can be found here.
