Social media stars will be investigated by the Competition and Markets Authority (CMA) after concerns were raised they are not properly declaring whether they have been paid or not.

Celebrities and social media influencers, many of whom have millions of followers, often showcase what they wear, which products they use, the books they read or where they go on holiday. Endorsements such as these can help brands boost sales and reach target audiences. However, when social media stars are paid or rewarded to promote or talk about a product, consumer protection law requires that they must declare this.

If they do not properly label posts, then the CMA claims that fans or followers may be led to believe that these product endorsements represent the star’s view – as opposed to the financially motivated reality.

The CMA suspects that many social media influencers do not follow these guidelines and are misleading followers.

Trusting Social Media Stars

As part of its investigation, the CMA has written to a number of high-profile social media figures and celebrities in order to gather information about their posts; as well as the nature of the businesses agreements they have in place with brands.

According to the authority, it will consider the extent to which some influencers are “clearly and accurately identifying any commercial relationships, and whether people are being misled.”

Social media users are more likely to place trust in a product if they believe it has been recommended by someone they admire. The CMA argues, however, that they might not do so if it was made clear that the brands featured have paid or rewarded a celebrity to broadcast a product.

Are you seeing the full picture? Posts on social media aren’t always what they seem. We’ve opened an investigation into whether social media influencers are clearly labelling paid for endorsements: https://t.co/455k1lC4S7 pic.twitter.com/22CEJEtGLP — Competition & Markets Authority (@CMAgovUK) August 16, 2018

The CMA said that if it finds practices that break consumer protection law, it will enforcement action against both brands and individuals. 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 a 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.”

Public Consultation

The CMA is asking members of the public to share their experiences of social media endorsements and said that the investigation would like to hear, in particular, from those who have purchased products that were showcased by celebrities or influencers.

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