Online stars who are paid to plug products
PEOPLE posting thoughts, pictures and videos on the internet have managed to turn their interests and product recommendations into big business.
Internet sensations who have flourished this way include Tanya Burr, Zoella and her younger brother Joe Sugg, who is due to appear on this year’s Strictly Come Dancing on BBC One.
Their online followers have grown so much that it has led to book deals, personal product ranges and merchandise.
Fans who appreciate the style of social media influencers watch their channels or follow their posts to see what they wear, how they apply make-up and where they travel.
There are many trying to capture the success others have had by growing their online profiles and their personal wealth.
Market regulators are now concerned that some online celebrities are not clear enough in their social media posts when a personal recommendation is sponsored rather than spontaneous. The Competition and Markets Authority recently announced that it is investigating social media stars who are not declaring their rewards or payments for public endorsements.
The worry is that members of the public will buy a product plugged by an online celebrity, without knowing they were actually paid to make the recommendation.
The authority’s George Lusty says: ‘If people see clothes, cosmetics, a car, or a holiday being plugged by someone they admire, they might be swayed into buying it. So, it is 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.’
An update on the investigation is expected at the end of the year.
The authority says it is keen to hear from people who have been convinced to buy products promoted via social media.
Email SME@cma.gov.uk.