CCPC, ASA tighten regulation of social media influencers
The Competition and Consumer Protection Commission (CCPC) has signed a new data-sharing agreement with the Advertising Standards Authority (ASA), which will enhance regulatory oversight of social media platforms.
The agreement will enable the ASA to share information it receives through its online reporting portal while remaining in line with data protection laws, including names, social media images and the usernames of influencers who repeatedly fail to comply with the rules. This will give the CCPC greater access to reports from the public of potential breaches of the law.
Under consumer protection law, social media influencers must not mislead consumers through unfair practices such as hidden or mislabelled advertising, or they could breach consumer protection law. This means they must clearly label posts that are commercial in nature.
The agreement marks a significant step in enhancing regulatory oversight and ensuring greater accountability of influencer advertising across social media platforms.
ASA reviews trends from complaints about marketing communications which may be in breach of its Code and may also investigate individual influencer marketing content issues. The outcome of these investigations can include a request to remove or amend the post or result in a formal adjudication by the ASA Independent Complaints Council, the details of which are made available on the Advertising Standards Authority website and published in the media.
A social media post may still breach consumer protection law even if it is properly labelled if the content is false or misleading.
The CCPC, as a statutory body, has a range of enforcement tools to ensure that consumer protection law is adhered to, including compliance notices, fixed payment notices, undertakings, prohibition orders and prosecution.
Patrick Kenny, commission member at the CCPC, said: “Consumer law protects consumers when engaging with the commercial content posted by online influencers. Commercial content from influencers must be clearly labelled as such and must also not be misleading. With the ASA, we have produced guidance for influencers to help them follow the law. This year we issued our first compliance notices against two prominent influencers. We continue to monitor this sector closely and will act where we see breaches here.
“The new data-sharing agreement allows the ASA to share reports from the public and will support us in protecting consumers when it comes to social media advertising.”
Orla Twomey, chief executive of the ASA, said: “We are delighted to formalise this data-sharing agreement, which marks a significant step towards enhancing regulatory outcomes for consumers in Ireland, ensuring a strong, responsive and resilient framework for the future. Social media advertising has been a key area of our focus, and this agreement is a further strengthening of cooperation between ASA and CCPC.”
In October 2023, the CCPC and the Advertising Standards Authority (ASA) published fresh guidance for Irish influencers on the clear labelling of ads on social media.
The comprehensive and accessible guidance addresses paid promotion, items ‘gifted’ by brands or PR agencies, and the advertising of own-brand products and services. The joint guidance was developed following extensive research, including experiments with eye-tracking technology and a survey of 500 social media users. A number of influencers were also asked to review the new guidance and provide feedback to the CCPC.
Traders engaging in practices deemed to be unfair or misleading to consumers may face enforcement action such as compliance notices, fixed payment notices, undertakings, prohibition orders and prosecution.
The ASA code also requires that it be made clear when content is a marketing communication. The ASA reviews complaints from any person or body who considers that a marketing communication may be in breach of its Code. The ASA may also investigate issues identified through its monitoring programme. The outcome of these reviews can include a recommendation to remove or amend the post.
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