Influencer Marketing Regulations: What Brands Need To Know

By Disrupt
23 Apr 2024

To the outside world, being an influencer hasn’t always been seen as a profession. It feels as though only in recent years, people are starting to recognise the industry for what it is – a huge marketing tool with lots of career opportunities. Like any industry, there are certain rules & regs to abide by to ensure you’re doing things correctly and that is no exception for influencer marketing.

Since being an influencer involves promoting products and services, this is a form of advertising and marketing so there are influencer regulations set in place by the ASA (Advertising Standards Authority), CMA (Competition and Markets Authority) and CAP (Committee of Advertising Practice). 

At Disrupt, it’s part of our job to stay on top of these regulations, so we’re able to monitor the campaigns we put out there and ensure they are following the rules set in place. A recent report from the European Union found that a huge 80% of online creators have been guilty of failing to disclose an AD properly – this kind of thing misleads consumers and is one of the main reasons the influencer marketing industry has tight regulations in place. 

There is a lot to keep on top of but Disrupt is here to break it down for you, so you and your brand know what needs to be done when working with content creators. 

WHEN MUST INFLUENCERS DISCLOSE AN AD?

Perhaps the biggest question on everyone’s minds is just what constitutes an “ad”. People may assume it is only when a creator is being paid directly by a brand to post on social media, but ads cover a wide variety of partnership types in the influencer marketing landscape, all of which must be disclosed correctly. This includes the below:

While these rules are a blanket regulation across all industry verticals, some industries in particular including alcohol, gambling and travel & tourism come with their own regulations. This can relate to the age of the influencer and audience, certain words that can or can’t be used etc. You can find a deep dive into this here. 

SHOULD INFLUENCERS MENTION THEIR RELATIONSHIP WITH A BRAND?

Influencer marketing advertising rules state that creators also have to be transparent about the nature of a relationship with a brand. The following must be disclosed:

THE DO’S & DON’T OF ADVERTISING A PAID PROMOTION

Perhaps the biggest thing to take away from all of this is that “ad” (or some variation of the word) really is the only acceptable form of labelling content. There are lots of other ways creators try to get around labelling content which might look a bit softer to their audience, and while they do this to ease followers into ad content, it isn’t correct.

According to the ASA here are the ways an influencer should highlight paid promotion to their audience, this includes everything mentioned above.

There are lots of ways which have been seen on paid content which might look right but are not the correct way to properly disclose an advertisement. Here’s some bad ways that influencers do this:

The ASA will not recognise any of the above when it comes to labelling paid-for content. If they see it or it gets reported then the brand, creator and agency (if applicable) could get into trouble. 

So that means, if an influencer receives a gift from a brand but has not been paid to promote it – but they do, “Gifted” is not enough, “Ad” must be used. This is in order to keep it as clear as possible to the consumer that the influencer is posting in exchange for goods of some kind, and it keeps things streamlined and a lot simpler if these labels are kept to variations of “Ad”.

It’s also worth noting that the ‘paid partnership’ label, often seen on TikTok, is NOT enough – across all platforms, “Ad” must be used.  “Ad” also needs to be at the start of a caption or post, not in the middle or end – and it must be super clear when used on stories.

ASA INFLUENCER REGULATION ISSUES

It’s not just issues such as a 2020 investigation that found only 35% of sponsored posts were clearly signposted as an AD that are bothering the ASA. There are things that creators have been doing that they are starting to crack down on, these include:

Creators using stories to promote their Ad reel (and ad not being used in these stories): even story reshares of a reel must be disclosed, even if the creator has not been paid to do a story, they are still showcasing the ad content created.
Visibility of ad labels: some creators will use “Ad” but make it very small on stories and hide it in the caption somewhere, making it less visible to consumers.
Failure to label affiliate content as advertising: as mentioned earlier, all affiliate links need to be disclosed but some creators fail to do so as they feel they’re doing it organically, even when they are getting something in exchange.
Reliance on bios to inform consumers of ambassadorships and other brand relationships: it’s common for creators to include in their bio if they have a big relationship with a brand, but simply writing “brand ambassador for xx” in bios is not enough to disclose the ad, it needs to be on every post.

WHAT HAPPENS IF A COMPLAINT IS MADE TO THE ASA ABOUT YOUR AD?

This is all well and good, but what are the actual consequences of influencer marketing regulations and not following them properly? In the case that either the ASA spots an incorrectly labelled post or it gets reported by someone else, the following steps will happen: 

In the case that this happens, brands and creators can act quickly. If “Ad” is added to a post after, then the case can be resolved informally and won’t need further action, so this is the best thing to do. However, if a creator fails to label Ads consistently, the ASA releases a public name and shame list of creators who are non-compliant to ASA influencer guidelines. 

Posts will be deleted or taken down by platforms if they are seen to break regulations, affecting creator relationships with brands and their followers.

In other countries such as France, consequences can be much more severe, with influencers potentially facing jail time for not following regulations – but these are extreme cases.

In a nutshell, as long as a brand, you’re ensuring any creator you work with in any capacity includes “Ad” on social posts they post about your brand, you should be set. For more information or help on how to avoid ASA issues, get in touch with Disrupt and our influencer marketing experts will have you covered.

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