Celebrities face inquiry into ‘hidden’ online adverts
Hundreds of ‘influencers’ under spotlight over posts suspected of encouraging followers to buy products
THEIR photographs and videos of luxury holidays, designer gear and makeup attract not only the attention and jealousy of millions, but also bumper sales for companies.
And now hundreds of celebrities are being investigated by the competition watchdog over social media posts that it suspects are “hidden adverts” for products.
The Competition and Markets Authority (CMA) has launched an investigation into celebrities who it says are able to sway the shopping habits of millions of consumers.
It says it has found evidence that posts by so-called “influencers” may be endorsing goods or services without declaring they are being paid to do so, potentially misleading people into thinking paid posts represent their genuine opinion.
Under the Consumer Rights Act, using editorial content in the media to promote a product where a trader has paid for the promotion without making that connection clear to the public is banned.
It means that even if a celebrity is paid to be an ambassador for a brand they may still need to declare they are being paid for social media posts about products.
Failure to comply with the rules could result in a prison sentence of up to two years and an unlimited fine, the CMA said.
The investigation comes after dozens of celebrities were written to by the Federal Trade Commission, the US equivalent of the CMA. Among those contacted was Victoria Beckham, who was questioned over her social media posts about beauty products. A spokesman for Ms Beckham did not reply to requests for comment.
The CMA’S investigation will run alongside the Advertising Standards Authority’s ongoing work on celebrity endorsements.
Under its rules, an influencer’s post will be classified as an advert if they have been paid in some form and have given some control over the message to the advertiser.
A brand sponsoring an influencer to create a post but without asking for any control of the content would not have posts labelled as an advert.
A number of celebrities, including Rita Ora, Ellie Goulding and Cara Delevingne have previously made posts which might be in breach of the rules.
Singer and actress Ms Ora, 26, who has more than 13million followers on Instagram, recently posted a picture of herself on holiday in Jamaica captioned “Rockhouse Hotel”, naming accommodation in the beach resort of Negril. Another bikini shot was captioned “Thank
‘If people see clothes or a holiday plugged by someone they admire, they might be swayed into buying’
you @rockhousehotel”. It is not known whether any of these celebrities are part of the CMA’S latest investigation.
The watchdog revealed it has written to a range of celebrities to “gather more information about their posts and the nature of the business agreements they have in place with brands”.
It is also asking the public to share their experiences as part of the investigation, and said it was interested in hearing from people who had bought products endorsed on social media.
George Lusty, the CMA’S senior director for consumer protection, said: “Social media stars can have a big influence on what their followers do and buy.
“If people see clothes, cosmetics, a car, or 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.”