Last week, the Competition and Markets Authority (CMA) announced that it has launched an investigation into influencers who fail to disclose that they were compensated to post content on behalf of brands.
“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,” George Lusty, the CMA’s Senior Director for Consumer Protection, stated. “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.”