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The Competition Bureau of Canada, an independent law enforcement agency, is warning social media influencers to state when a message is advertisement. The federal agency wants consumers to be aware of influencers that use social media to praise products and services from brands in exchance for gifts or monetary compensation. Moreover, the agency sent letters to over 100 brands involved in what is known as "influencer marketing."
Transparency in Advertising
Celebrities aren't the only ones cashing in on the online phenomenon, smaller Twitter, Instagram and YouTube influencers with modest followings are also taking part in the lucrative business marketing model.
In a time when online marketing is rife with consumer fraud and deceitful practices, The Competition Bureau of Canada is seeking transparency in advertising. In other words, influencers must disclose the relationship they have with a brand and base their product reviews solely on personal experiences. The Bureau also warns that businesses that are marketing products through social media influencers could violate rules againts sales or misleading content.
Lastly, Matthew Boswell, the bureau's commissioner says consumers must be able to know if opinions expressed by social media influencers are authentic or sponsored content.
The warnings come on the heels of the US Federal Trade Commission's (FTC) (COPPA) announcement earlier last fall which seeks to take action against YouTubers in violation of anti-trust laws. Those is breach of the law could face fines upwards of $40 000 per video. The federal agency Child Online Privacy Protection Act will take effect as of January 1st 2020.
Avoid The Fine! Click here to read more about FTC's COPPA and YouTube
