Influencers with thousands of followers can earn huge fees from companies for promoting a product on Instagram.
The court held that a fitness influencer should have been clear that she was advertising when she was paid to promote a brand of jam.
- Reuters
- Last Update:September 09, 2021, 17:30 IST
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Social media influencers receiving money from companies to promote products must clearly label such posts as advertisements, a top German court ruled Thursday.
If influencers are not paid, they can show products without advertising labels, the Federal Court of Justice ruled in the cases of three influencers on Facebook’s social media site Instagram.
Influencers with thousands of followers can earn huge fees from companies for promoting a product on Instagram.
The court held that a fitness influencer should have been clear that she was advertising when she was paid to promote a brand of jam.
However, it dismissed a case against television presenter and influencer Kathy Hummels, whose post about a stuffed toy had led people to the manufacturer’s site. She was not paid for the promotion so she was not obligated to label it as an advertisement, the court ruled.
Instagram last year entered into an agreement with Britain’s Competition and Markets Authority (CMA) to crack down on hidden ads by influencers on its photo and video platform.
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