A clear definition between posts that are advertising and those that are not is being enforced, particularly amongst notable figures in Ireland, where the hashtag #collab may no longer be adequate. This stipulation holds regardless of whether the promoters are being financially compensated for endorsing the virtues of a particular product such as hair treatments or facial creams, or are enjoying an all-expenses-paid holiday, with every cocktail captured and shared in glamorous manner.
The Competition and Consumer Protection Commission (CCPC) in Ireland sent reminders to 26 leading figures active in various sectors such as beauty, fashion, food, entertainment, and sports. They were reminded about their duties concerning customer law protection last month. Also receiving these reminders were 18 anonymous corporations which represent these figures.
These entities were urged to scrutinise their social media outlets and make the necessary corrections to any detected problems. Contents should be labelled properly. While the CCPC’s approach appears mild and is characteristically more enticing than punitive without disclosing the identities of the figures and corporations involved, it’s worth noting that prohibitions and prosecutions are within its powers if adherence is not obtained.
These reminders were sent out following a collection of evidence gathered by the European Commission and national consumer authorities which found that the posts of large-scale social media influencers were in breach of duties. The influencers examined numbered 576 and they covered Europe at large, encompassing European Economic Area nations like Norway and Iceland.
The majority of the influencers examined were seen to be active across several platforms, with 572 on Instagram, 334 on TikTok, 224 on Youtube, 202 on Facebook, 82 on X, 52 on Snapchat, and 28 on Twitch. An alarming figure of almost all (97%) of these influencers was found indulging in commercial content promotion but only a fifth confirmed their posts were advertisements.
In scrutinising the posts, there was the added discovery that over a fifth of these influencers were found guilty of endorsing hazardous or health-threatening activities without the necessary health and safety precautions. From the influencers scrutinised, 358 have been marked for further investigation, with each national authority given the responsibility of getting in touch with those in their respective jurisdictions directly. Consequently, 26 notable figures in Ireland received their letters in March.
The CCPC refrains from revealing which element of the consumer protection laws the Irish figures were found to be violating. The violation could be due to the non-existence or incorrect labelling of commercial content, the encouragement of potentially harmful goods and services, or both.
As of November past, customers hold the right to report influencers over any perceived violations of the advertising code to the Advertising Standards Authority (ASA). Influencers who presume their followers to be either unobservant or apathetic towards making formal complaints are mistaken. From November 17th to the end of March, the regulatory body received 2,959 entries, with a substantial quantity related to improper revelation of paid content on digital media.
The advertising oversight panel approached numerous influencers to demand compliance in the future. Some were subjected to formal probes and rulings, signifying that they endured identical procedures that have been executed for years for advertising on platforms like radio, TV, and print due to consumer complaints.
Two issues encountered by the ASA’s compliance panel early this year relating to relatively famous Irish influencers will surely act as a cautionary tale to the micro- and nano-influencers vying for attention in this overpopulated field. RTÉ 2FM host Laura Fox’s social media content about her experience using an orthodontic product and offering advice to potential users was found problematic. Notwithstanding the inclusion of the hashtag “#collab”, the complainant maintained it was not evident that it was promotional communication and the ASA concurred.
During the ruling process, Fox’s representatives asserted that she had received the treatment at no cost and believed it apt to label the content as #collab as is the norm within the sector. Her agency, tendering an apology on her behalf, pledged to alter the posts to incorporate “#ad” and “#sponsor”.
An additional complaint delivered to the advertising panel involved Instagram posts, stories, and reels showcasing cars and offers from Volkswagen Wexford, shared by DJ Phil Cawley, a presenter on South East radio. The complainant deemed the content misleading due to a lack of disclosure regarding Cawley’s role as a brand ambassador for the car dealership.
The complaint was upheld by the ASA, which stated that when influencers receive sponsorship from brands, any content referencing said brand should be labelled appropriately, such as #brandambassador, to eliminate any potential confusion.
Advertisers might need to exercise greater caution due to mounting regulatory attention on influencers, and a report from Europe revealing widespread disregard for consumer protection regulations amongst those questioned. Brands may need to reconsider their approach to a promotional channel which is not only hard to gauge but also heavily populated, according to Ian McGrath, COO at Dentsu Ireland. He contends that brands tend to avoid jeopardising situations by channelling their expenditure into moderated outlets, thereby safeguarding their advertising finances.
Regardless, social media influencers’ ability to directly engage with their audience in a segmented media environment is seen as an attractive prospect. Stephen Murphy of Wolfgang Digital, a Dublin-based agency, asserts that various individuals can wield influence for a brand, but the main aim is to amplify the brand’s message through genuine people-driven creativity in any social strategy. While compliance with advertising regulations might improve the clarity of influencer marketing, Murphy highlights that such transparency could potentially cast doubt on the authenticity of the content, especially if it’s marked with a large #AD.