CMA updates guidance for businesses advertising on social media

The Competition and Markets Authority (CMA) has published new guidance to make it easier for consumers to identify paid advertising and endorsements on social media.

Working alongside the Advertising Standards Authority (ASA), Ofcom, social media companies and content creators, the CMA has produced a series of new resources to help brands, social media agencies, influencers, and the platforms themselves ensure paid-for content complies with consumer protection laws.

Guides set out the expectations for social media platforms, brands and influencers about being open and upfront when it comes to paid promotions, as well as explaining the roles and responsibilities of the different regulators of online advertising.

George Lusty, CMA Senior Director of Consumer Protection, said:

“Hidden adverts are illegal and harmful. They could persuade people to spend money on things they might not buy if they knew the endorsement was paid for, which is even more concerning now people’s finances are squeezed.

“Transparency is everyone’s responsibility – from social media platforms to brands and influencers. Those not already doing their part should get up to speed with the law now, to make sure people can quickly and easily identify paid-for content. Following our guides will help them with this.”

The new guidance for businesses and brands highlights their responsibility in tackling hidden advertising. Recommendations including being clear with influencers that they pay or send gifts too that they must label posts clearly, and ensuring that when that is not done, steps are taken to remove or amend misleading posts.

Guy Parker, Chief Executive of the ASA, added:

“We welcome this guidance, which adds to the existing resources the ASA and CMA have produced to help platforms, brands and influencers stick to the rules. Platforms have an important role to play in making sure advertising content is clearly recognisable. We will continue to work closely with the CMA in this key area.”