Social media stars with millions of followers have agreed to change the way they label their posts, as a result of CMA action.
The Competition and Markets Authority (CMA) has secured formal commitments from 16 celebrities to ensure they will now say clearly if they have been paid or received any gifts or loans of products which they endorse.
The influential celebrities, with large online followings, who have acted in response to the CMA’s concerns, include singers Ellie Goulding and Rita Ora, models Alexa Chung and Rosie Huntington-Whiteley, former Coronation Street and Our Girl actress Michelle Keegan and TV reality stars Millie Mackintosh and Megan McKenna.
Online endorsements from celebrities and influencers can help brands boost sales, as millions of fans follow their social media channels to see where they go on holiday, what they wear, which products they use and more.
However, where such stars are paid or rewarded to promote a product in their social media feeds, consumer protection law requires them to disclose that they’ve been paid or incentivised to endorse a brand. Otherwise, they risk giving a misleading impression that a post represents their personal view about a product or service.
Andrea Coscelli, Chief Executive of the CMA, said:
“Influencers can have a huge impact on what their fans decide to buy. People could, quite rightly, feel misled if what they thought was a recommendation from someone they admired turns out to be a marketing ploy.
“You should be able to tell as soon as you look at a post if there is some form of payment or reward involved, so you can decide whether something is really worth spending your hard-earned money on.
“The enforcement action taken by the CMA has seen a number of social media stars pledge to be more transparent when posting online. It also sends a clear message to all influencers, brands and businesses that they must be open and clear with their followers. We will also continue our work to secure more improvement in this space.”
Warning letters have also been sent to a number of other celebrities, urging them to review their practices where some concerns have been identified.
Further investigation work will look at the role and responsibilities of social media platforms.
The CMA has also published a quick guide for social media influencers, marketing companies, agents and brands to ensure they are aware of their obligations under consumer protection law. This is in addition to the joint guidance issued with the Committee of Advertising Practice (CAP) “An Influencer’s Guide to making clear that ads are ads” published in September 2018.
More information can be found on the CMA’s social media endorsements page