INSTAGRAM INFLUENCERS MUST LABEL PAID POSTS AS ADS, GERMAN COURT SAYS

Fri 10 September 2021:

According to Germany’s top court, social media influencers must reveal when they are paid to promote a product.

The verdict aims to stop German users on Instagram and other platforms from engaging in “hidden advertising.”

After a case involving Germany’s Association of Social Competition, which is in charge of ensuring fair trading, the decision was made.

Three female Instagram influencers had shared promotional content, according to the organisation.

The influencers were accused of “inadmissible surreptitious advertising” and failing to clearly state when their Instagram postings were promoting sponsored products, according to the complaint.

The German Federal Court of Justice agreed with the group in its decision on Thursday, ruling that online influencers who are paid to promote products or services must properly designate their posts as ads.

The court informed one of the three influencers that she should have disclosed when she was paid to promote a certain type of jam.

“Advertising must be clearly identifiable as such and clearly separated from the rest of the content of the offers,” the court said, noting German law. “No subliminal techniques may be used in advertising.”

But judges also said that if the influencers are not paid, they can promote products without an advertising label.

The case against a social media influencer and TV host was rejected since she did not get any compensation for a post about a stuffed toy that led people to the manufacturer’s website.

Companies can pay substantial sums of money to influencers with thousands of followers to promote a product on Instagram.

Instagram claims that more than 90% of its users follow a brand, indicating that the business might be lucrative.

Last October, Instagram’s parent company, Facebook, signed an agreement with the UK Competition and Markets Authority to prevent users from being exposed to disguised advertising.

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