UK probes celebs endorsing goods

LONDON: When celebrities announce online where they go on holiday, what they wear, which products they use, and the books they read, it is not entirely clear if they have been paid to make endorsements.

Britain’s Competition and Markets Authority (CMA) wants celebrities to properly declare when they are paid, or otherwise rewarded, to endorse goods or services that may influence large number of their followers.

It launched a probe on Thursday, writing to celebrities and social media influencers for details on their online posts. If CMA finds practices that violate the consumer protection law, it can take enforcement action.

CMA said: “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.

But followers might not have the same opinion if it were made clear the brands featured have paid or rewarded, the celebrity in return for endorsement.

The investigation is considering the extent to which influencers are identifying any commercial relationships, and whether people are being misled.

George Lusty of CMA 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.”