The Competition and Markets Authority (CMA) has recently concluded an investigation into a social media marketing company after the CMA identified concerns that the company had arranged for widely-followed social media personalities to promote businesses’ products on social media sites, without readers being informed that the content was paid-for advertising.

This follows a previous investigation in which two marketing companies arranged for endorsements in online articles and blogs on behalf of a short-term loan provider, without making it clear to readers that they were advertising.

Following the CMA call for information report, they have identified some potential misleading practices in relation to online reviews and endorsements.

This open letter to marketing departments, marketing agencies and their clients about their obligations under consumer protection law, addresses their concerns in the following 2 areas:

  • clearly labelling or identifying paid promotions
  • the writing, commissioning and publishing of fake reviews

 

CMA open letter

 

 

 

 

 

 

 

 

Open letter to marketing departments, marketing agencies and their clients (PDF)

Source: CMA website

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