Report finds 'widespread failure' to label ads by social media influencers

Nearly half of commercial content posted by influencers is not labelled as advertising, a new review has found. 

The Competition and Consumer Protection Commission (CCPC) has published its report on social media influencers. 

The report found that 48.4% of the commercial content reviewed by the CCPC was not labelled as advertising in any way.

Poor levels of labelling relating to influencers' marketing of their own brands was an area of particular concern, according to the CCPC.

The report found that 66% of consumers who follow influencers reported purchasing a product as a result of an influencer mentioning it. However, nearly 24% of them stated that they subsequently felt misled about the product that they had purchased.

Consumers said they can be reluctant to report such issues to a regulatory authority such as the CCPC, preferring instead to unfollow such influencers.

Consumers raised specific concerns around influencers promoting cryptocurrencies and other financial products, particularly when the influencer had no experience in the area.

 The report found that just 10% of consumers trust the information provided by influencers. 

However, the research found that consumers are reluctant to use the word “influencers” in reference to people they follow on social media platforms, preferring instead to use terms such as “interactive celebrities”, “people of interest”.

People may be overconfident in their ability to recognise influencer advertising and may be vulnerable to misleading practices, the CCPC said.

Consumers and influencers interviewed for the research agreed that clear guidance would be beneficial for everyone, particularly for more vulnerable social media users - for example, children and teenagers.

“This research shows that influencer marketing is constantly evolving and as such influencers and consumers alike need clarification in relation to the labelling of social media advertisements,” Kevin O’Brien, member of the CCPC, said.

"Platforms and brands must take greater responsibility for educating and informing their users and consumers, and must support influencers in clearly and consistently labelling paid content," Mr O’Brien said. He added that the CCPC will “monitor social media platforms for progress in this area”.

"It’s crucial that platforms, brands, influencers and agents understand their responsibilities and abide by the law. We will also work with the ASAI to develop guidance which will provide greater clarity in relation to responsibilities and requirements,”" he said. 

"We will also work with the ASAI to develop guidance which will provide greater clarity in relation to responsibilities and requirements," Mr O'Brien said.