Home Business News Alert: Social media ads under UK watchdog scanner

Alert: Social media ads under UK watchdog scanner

by Purvai Dua
16th Aug 18 1:34 pm

UK’s competition regulator has launched an investigation into whether celebrities and influencers who endorse products are declaring paid advertisements or not.

UK Competition and Markets Authority (CMA) also said that such endorsements could mislead customers and therefore the influencers must make any commissioned posts immediately clear.

“If people see clothes, cosmetics, a car, or a holiday being plugged by someone they admire, they might be swayed into buying it,” said George Lusty, the CMA’s Senior Director for Consumer Protection.

“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.”

The CMA said it had written to a range of famous people to gather more information about their business agreements with brands, and also wanted the public to share their experiences as part of the investigation.

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