Know when to trust the #Ad vice of an influencer
Written By
Guidelines for Labelling Paid Promotions in Social Media Posts by Irish Influencers
We all know and recognise the paid promotions on social media by influencers these days. They have probably caught your eye once or twice, or perhaps they have influenced you to purchase something. Whether you are an emerging brand, an established retailer, or a regular consumer and shopper, the increased rise in influencer marketing means that you should be aware of what is permitted legally when labelling paid promotions.
The Advertising Standards Authority of Ireland (ASAI) and the Competition and Consumer Protection Commission (CCPC) have issued joint guidance on the labelling of paid promotions on the social media posts of Irish influencers (the ‘CCPC & ASAI Influencer Guidance’). While the labelling of posts with various hashtags such as #IWorkWith #Sponsored or #OwnBrand was relatively prevalent, the new CCPC & ASAI Influencer Guidance provides how all commercial communications should now be labelled. Commercial posts must contain the label #Ad or #Gifted where the influencer has received unsolicited products or services. Further labels such as #collaboration, #sponsored, #affiliate etc. are not mandatory but may be used in conjunction with the #Ad or #Gifted label. Further, if there is a personal relationship between the influencer and the brand, it is recommended that it is clearly labelled, for example, #Ad–familybusiness. These labels should appear at the beginning of any text or video and must not be obscured by any profile picture or platform features.
This Irish initiative comes against the backdrop of a coordinated regulatory sweep of influencer accounts across the EU to assess compliance with consumer regulations. The European Commission has projected that influencer marketing will reach a global value of almost €20 billion in 2023. More recently, the European Commission launched its Influencer Legal Hub on 16 October 2023. Brands, retailers and influencers will need to understand and comply with all legal requirements and guidance at national and EU level in the jurisdictions in which they are active in the EU.
The CCPC is the authority with statutory powers to enforce the Consumer Protection Act 2007 which provides that it is an offence to engage in commercial practices that are unfair or misleading to consumers. Traditionally it was retailers and brands that were the focus of enforcement actions however, the latest regulator campaign makes it clear that influencers are also a category of interest to retailers. Any retailers, brands, or influencers, who engage in such practices may face enforcement actions and subsequent prosecution.
The ASAI is an independent group, which operates a self-regulated code that applies to its members. It has no statutory standing, but increasingly we see the CCPC join forces with the ASAI on these campaigns.
What does the new CCPC & ASAI Influencer Guidance mean for your business or brand? When working with influencers, celebrities, or gifting products or services to generate interest on social media, you should ensure that all your content and those with whom you collaborate with are correctly labelled to avoid being subject to penalties or regulatory scrutiny.
For more information and specific advice, contact Deirdre Kilroy or Georgina Parkinson.
