Social media influencers who receive money from companies to push products must clearly label such posts as advertisements, a top German court ruled on Thursday.
If the influencers aren’t paid, they will show products without the advertising label, the judicature of Justice ruled within the cases of three influencers on Facebook’s social media site Instagram.
Influencers with thousands of followers can earn large fees from companies to promotes a product on Instagram. Therefore, ads must be shown separately so as for the viewers to know.
The court said one fitness influencer should are clear she was advertising when she was paid to market a brand of jam.
However, it dismissed a case against television presenter and influencer Cathy Hummels, whose post a couple of stuffed toy had led people to the manufacturer’s site. She had not been acquired the promotion so wasn’t obliged to label it as a poster, the court ruled.
Instagram last year reached a house Britain’s Competition and Markets Authority (CMA) to restrain on hidden advertising by influencers on its photo and video platform.
