The Irish Competition and Consumer Protection Commission (CCPC) has taken steps to ensure that social media influencers comply with legal requirements regarding content labeling. In a recent development, the CCPC has issued cautionary letters to 26 influencers, urging them to accurately label their content as required by law.
These influencers, operating across various sectors including beauty, fashion, food, entertainment, and sports, have been reminded of their obligations to provide transparent and truthful information to consumers. Additionally, the CCPC has reached out to 18 companies representing influencers, emphasizing their responsibility to uphold legal standards in content promotion.
The initiative follows a comprehensive Europe-wide investigation launched last November, covering 22 EU member states, Norway, and Iceland. As part of this effort, the CCPC conducted a thorough examination of social media posts from 576 influencers, focusing on sectors such as beauty, fashion, food, entertainment, and sports.
The findings revealed significant shortcomings in content labeling practices, with only one in five influencers consistently disclosing the commercial nature of their posts. Notably, a substantial portion of influencers (38%) failed to use platform labels that indicate commercial content, such as the “paid partnership” option on Instagram.
In response to these findings, the CCPC has taken proactive measures to address compliance issues. Following the initial investigation, 358 influencers were contacted for further scrutiny, with 26 individuals in Ireland specifically contacted by the CCPC for non-compliance.
The CCPC, stressing the ongoing nature of its work, has underscored the importance of consumer protection in influencer marketing. Influencers have been reminded of their legal obligations regarding content labeling and encouraged to rectify any issues identified on their social media channels.
Moreover, the CCPC has extended its outreach to companies representing influencers, emphasizing the need for awareness and adherence to consumer protection laws. Enforcement actions, including undertakings, compliance notices, prohibition orders, and prosecution, are available to ensure compliance with legal standards.
The investigation also shed light on the prevalence of influencers across various social media platforms, with Instagram being the most popular platform, followed by TikTok, YouTube, Facebook, and others. Additionally, concerns were raised regarding influencers promoting unhealthy or hazardous activities, such as junk food, alcoholic beverages, medical treatments, gambling, and financial services.
In light of these findings, European consumer law emphasizes transparency in commercial posts, prohibiting influencers from misleading consumers and requiring disclosure of advertising activities. Last October, the CCPC and the Advertising Standards Authority of Ireland issued new guidelines on influencer advertising and marketing to facilitate compliance with legal requirements.
As the digital landscape continues to evolve, regulatory authorities remain vigilant in safeguarding consumer interests and promoting transparency in influencer marketing practices.
