In August 2018 the Competition & Markets Authority (CMA) launched a probe into the practices of celebrities and online stars engaged in brand marketing and advertisement. The investigation focused on 16 of the UK’s top personalities and was published in the latter end of January 2019 to the reception of a lot of media buzz.
Whilst the CMA did not make a finding as to any wrongdoing under the Consumer Protection from Unfair Trading Regulations (CPRs) (which is ultimately a matter for a court of law to determine), it did cooperate with those individuals to secure assurances that they would comply with the CPRs going forward. By targeting the top 16 stars in this space, the CMA has managed to place a spotlight on the CPRs and the rules of disclosure whilst sending a clear message about compliance to the rest of the players in the game.
More importantly, the investigation has highlighted that the rules governing influencer marketing continues to be an area that many (brand and influencer alike) have not fully grasped, and not without good reason. The web work of rules, regulations and differing guidelines are patchwork at best and not very accessible to the majority involved.
And, yes, while it is incumbent on the player to know the rules of the game there has, until recently, been a distinct lack of consolidated guidance and material issued by those overseeing bodies calling the fouls. Recognising education on this subject was an issue, in September 2018 the Advertising Standards Authority (ASA) together with the CMA jointly issued guidelines on the topic. Whilst certainly welcome, some might argue these guidelines are a little late given that platforms like Instagram have been around since 2010 and the influencer marketing has been an established multi-million dollar industry for some years now.
So what’s the issue?
The ASA and CMA are concerned that influencers are using the power of their influence to impact upon what their fans decide to buy from the brands that they promote and not clearly disclosing if they receive a commercial gain in return for such activity.
In particular, their concern is that those fans are being misled as to whether the product or service in question is a real and genuine recommendation or if there is a commercial arrangement behind the scenes. The CMA consider that, in the absence of such disclosure, there is a risk that those fans might spend their hard earned money on things that they may not have spent, had they known the influencer was being paid to promote it.
What are the rules on disclosure?
The CMA are keen to promote transparency in so far that a fan looking at a post becomes immediately aware that there is some form of payment or reward involved. The CMA say that it is only fair that the consumer should know this before they decide whether something is really worth buying.
According to the ASA and the CMA the following categories are all disclosable commercial relationships:
- – Paid for content
- – Gifted and/or loaned products and services
- – Events and sponsorships
- – Previous commercial relationships/ engagements (i.e. brand ambassadors)
- – Affiliate marketing arrangements
The guidelines published by the ASA and CMA in September 2018 set out that the aforementioned can be disclosed with hashtags like #AD or #AdvertisementPromo and #AdvertisementFeature. In some instances, however, #ADVERTISMENTPROMO may not be suitable for the media format which it is published (for instance in small title spaces or thumbnails) or simply not an appealing tagline that a brand or influencer wants to plaster over carefully curated content.
To this end, the CMA have not been prescriptive about what is acceptable, only that which is not acceptable for example using vague language such as ‘brought to you by’ or simply thanking a brand when they receive an unsolicited ‘gift’ in the post. Whilst this is partially helpful, it does not provide the much needed clarity on those greyer areas such as where there hasn’t been an exchange of cash but some other non-monetary value instead.
This is one of those situations where technology and growth of opportunity fast outpace common protocol and, so, it is likely that we will see a lot of influencers rubber stamping all brand collaboration content with #AD or #AdvertisementPromo (or #AdvertisementFeature) as the default option to avoid breaching the rules.
In the future, the writer believes other social media platforms will also release the equivalent of Instagram’s ‘Paid for partnership’ button to assist influencers and brands disclose and perhaps the next generation ‘Paid for partnership’ button will have options so as to disclose the type of relationship more accurately. In the meantime and while there is much needed improvement and education to be seen in this area before these norms are properly established and adopted, a good rule of thumb is: if in doubt, you should probably disclose it.
Tahir Basheer is a partner in the Digital Media, Music, Fashion and Brands Groups at leading law firm Sheridans; visit his personal partner page on the Sheridans website. To contact him directly, email firstname.lastname@example.org or telephone 020 7079 0103.
If you want to know how to super-charge your brand’s sales via social media and to meet a leading nfluencer in the field, attend our interactive Masterclass on the morning of Tuesday 12 February 2019 at W London- Leicester Square Anna Shearer of Le Fashion Fetish and leading industry expert Natalie Hughes of The Fashion Digital will be sharing their expertise during this two-hour session. Tickets cost just £95+VAT but you can secure a 20% discount off your seat by using Promotional Code VIP20 at checkout. Book here.