Crackdown after social media influencer investigation

First published by Author on February 08, 2019 in the following categories: Incentives Investigations Latest Selling Restrictions and tagged with advertising | cma | competition law | incentives | investigations

A crackdown has been launched after a social media influencer investigation raised concerns that some product endorsements may be breaching vital competition law.

The Competition and Markets Authority (CMA) has reportedly written to a number of high-profile celebrities about their social media influencing habits. As a result of the warning letters, some social medial influencers have promised to clearly state if they’re being rewarded for endorsing products. Among those who have made the formal commitments are singers Rita Ora and Ellie Goulding.

We welcome this move and the cooperation of those involved so far.

What is the social media influencer investigation?

The social media influencer investigation has been looking into whether it’s clear enough to the consumer that some high-profile celebrities are receiving financial awards for pushing products.

One of the primary reasons I personally use twitter is because I like to see what a number of sportspersons and musicians I like have to say. It’s not uncommon to see these celebrities posting something about a product. You many think that they’re just another person who uses the same aftershave as you, but the reality is that they may be receiving money for posting about a particular product.

And this, to the consumer, may not be clear.

To resolve this, the social media influencer investigation was launched. As a result of the findings, warning letters have been sent to a number of high-profile celebrities. Some have now agreed to state clearly if they’re receiving money, gifts, rewards or loans from a company when they post about a product.

A positive outcome to this social media influencer investigation

The outcome for this social media influencer investigation is a positive one. With celebrities disclosing when they’re receiving financial awards for posting about certain products, the consumers know when they’re being marketed to. We don’t just want to blindly believe that a product is great because someone famous uses it, when the reality is that they’re being paid to push the product to you.

This crackdown should hopefully ensure that the power of social media doesn’t allow for consumers to be misled. This is greater clarity for the followers of high-profile accounts, and we welcome the move and the cooperation of all involved.