The government has made it mandatory for social media influencers to disclose their “material” interest when endorsing products and services. Violations can attract strict legal action, including a ban on endorsements.
The Department of Consumer Affairs issued a set of guidelines called “Endorsements Know-hows!” for celebrities, influencers, and even virtual influencers on social media platforms.
Which disclosure words are allowed?
For paid or barter brand endorsements, influencers can use any of the following terms: “advertisement”, “ad”, “sponsored”, “collaboration”, or “partnership”. The term must be indicated as a hashtag or headline text.
The department observed that there was confusion regarding which disclosure word to use for different types of partnerships. This clarification aims to remove that confusion.
Where and how to place disclosures
The disclosure must be placed in the endorsement message in a way that is clear, prominent, and extremely hard to miss. It should not be mixed with a group of hashtags or links.
For endorsements in a picture, disclosures must be superimposed over the image enough for viewers to notice. For videos or live streams, disclosures must be made in both audio and video format and displayed continuously and prominently throughout the entire stream.
Personal use of products is mandatory
The guidelines also state that individuals must not endorse any product or service that they have not personally used or experienced. Due diligence must be done by them before endorsing.
Influencers are defined as individuals or groups who have access to an audience and the power to affect their purchasing decisions or opinions about a product, service, brand, or experience – because of their authority, knowledge, position, or relationship with their audience.
Why these rules were introduced
The government aims to ensure that individuals do not mislead their audiences when endorsing products or services. The guidelines require compliance with the Consumer Protection Act and any associated rules.
Penalties for non-compliance
Violations of these rules can attract strict legal action, including a ban on endorsements. The government has made it clear that influencers, celebrities, and virtual influencers are all covered under these rules.
The guidelines apply to all social media platforms where endorsements take place. Influencers must now review their content to ensure proper disclosures are in place before posting any paid partnership content.
