The competition watchdog has launched an investigation over concerns social media personalities are not declaring when they have been paid to post about products and experiences.
The Competition and Markets Authority (CMA) said social media influencershave the power to sway the shopping habits of millions with posts endorsing goods or services, but they may not be disclosing that they have been paid to do so.
The CMA cited examples of posts that appeared to promote or endorse a product, or offered a celebrity’s personal opinion on the benefit of a product, without clearly disclosing if they were being paid by the brand.
It has written to a range of celebrities and social media influencers 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 particularly interested in hearing from people who had bought products endorsed on social media.
Typically, celebrities and influencers have millions of followers who watch their channels to see where they go on holiday, what they wear, which products they use, the books they read and more. Online endorsements from celebrities and influencers can help brands reach target audiences and boost sales.
For more read the full of article at The Guardian
