Social influencers and the law – where does it stand on disclosure?
After Australia Post was found to be paying for social media endorsements which were not disclosed and with more brands looking to social media influencers in their campaigns, Stephen von Muenster looks at where the law currently stands on the issue.
It is evident from a casual gaze through social pages or comms industry commentary that brands are turning to ‘social influencers’ to promote their products through online social channels with the intent of influencing consumer purchasing decisions in favour of their products.
Brands and their agencies are identifying and building commercial relationships with individuals, events or groups such as journalists, bloggers, Instagrammers, consultants, or industry analysts (directly or via influencer networks) to leverage them and build brand credibility within their identified following or ‘tribe’. This has sometimes been referred to as the Oprah Winfrey effect.
The product is sometimes overtly or subtly promoted by the influencer and the influencer does not always disclose that they have been rewarded. This gives rise to an important consumer law question – do social influencers need to disclose rewards and commercial connections with brands and products?
An interesting debate. I wonder how this applies to ‘mainstream’ celebrity sponsorships. For example, by the disclosure rationale, would athletes need to say they are being paid by Nike or Adidas every time they see someone in the street while they are wearing the branded clothes or turn up to a corporate/promo event?