Instagram and YouTube stars investigated by UK authority over paid promotion disclosures

Millie
Mackintosh is one celebrity who has not clearly labeled adverts
on Instagram.
Getty

• The UK’s Competition and Markets Authority is
  investigating celebrities and social media stars for not
  labeling paid promotions on platforms like Instagram and
  YouTube.
• The competition authority has written to a number of
  stars it suspects of wrongdoing and could name and shame them
  before the end of the year.
• It is not, at this stage, talking to the social media
  platforms about whether they are doing enough to stamp out the
  practice.

Britain’s Competition and Markets Authority has launched an
investigation into celebrities and social media stars failing to
declare when they are being paid to promote brands on platforms
like Instagram.

The competition authority said it
has written to a range of online stars to gather information
about their posts and the nature of the deals they strike with
brands to sell everything from vacations to makeup.

Those contacted could be in breach of UK consumer laws, and if
they don’t comply, the Competition and Markets Authority
could potentially take them to court. 

The Competition and Markets Authority plans to name those
caught up in the investigation before the end of the year. They
are understood to be well-known individuals, with large online
followings.

Social media celebrities have in the past fallen afoul of
advertising rules, which require them to clearly label their
posts as adverts if they are being paid to promote goods and
services.

One case in 2015 involved Millie Mackintosh, a former
reality TV star who has 1.3 million followers on
Instagram. She was rapped by the Advertising
Standards Authority after posting a video featuring a
J20 drink that was not clearly marked as an advert.

The Competition and Markets Authority is not, at this stage,
talking to social media platforms like Instagram and YouTube
about whether they are doing enough to clamp down on poorly
labeled ads. Its investigation could broaden, however, depending
on its findings. 

“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 Competition and Markets
Authority’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.”