UK watchdog says celebrities must disclose when they get paid for social media posts

Ellie Goulding, Rita Ora and other celebrities have agreed to
spell out in social media posts if they are being paid to promote a
brand, Britain’s Competition and Markets Authority said on
Wednesday.

The agency said it has secured formal commitments from 16
celebrities, who also include models Alexa Chung and
Rosie-Huntington-Whiteley, to change how they label social media
posts to their millions of followers.

Brands pay thousands of dollars for a single social media
post.

But European Union consumer protection law requires social media
users to disclose whether they have received gifts or cash to
endorse a brand, to avoid giving the impression the post represents
their personal view, the CMA said.

“People could, quite rightly, feel misled if what they thought
was a recommendation from someone they admired turns out to be a
marketing ploy,” CMA Chief Executive Andrea Coscelli said in a
statement.

Warning letters have also been sent to a number of other
celebrities — whom the CMA did not name — urging them to review
their practices where some concerns have been identified, the
watchdog added.

“Further investigation work will look at the role and
responsibilities of social media platforms,” the CMA said.

The CMA said last August it had begun investigating the trend of
celebrities and social media “influencers”, such as bloggers and
vloggers, endorsing brands.

(Reuters/NAN)