Instagram to crack down on ‘hidden advertising’

UK’s Competition and Markets Authority said it had investigated the issue of “hidden advertising” and was concerned that Instagram was not doing enough to tackle the problem

Instagram is to crack down on social media influencers and celebrities in the UK who post without telling followers they have been paid to do so, following an investigation by the Competition and Markets Authority (CMA).

The CMA said on Friday it had investigated the issue of “hidden advertising” and was concerned that the Facebook-owned platform Instagram was not doing enough to tackle the problem.

In response Facebook Ireland, which operates Instagram in the UK, said it had committed to a package of measures including prompting users to clearly disclose if a post has been paid for, and putting in place systems to spot posts for which this has not been done. Clear labelling of incentivised posts is required under UK consumer protection law, so that people are not misled.

For too long, major platforms have shied away from taking responsibility for hidden advertising on their site, said Andrea Coscelli, the chief executive of the CMA. So this commitment to tackle hidden adverts and overhaul the way people post on Instagram – making it difficult for users to ignore the law – is a welcome step forward. These changes mean there will be no excuse for businesses to overlook how their brands are being advertised either, making life a lot harder for those who are not upfront and honest with their followers.

Instagram will now make regular reports on its progress in tackling the problem to the CMA, which said the commitments apply to all Instagram users in the UK as well as anyone globally who directs their posts towards UK users. The CMA said it has not made a finding on whether Instagram’s practices have breached consumer protection law.

We’re pleased to be working with the CMA on our continued efforts to help people be transparent about when they are paid to post content on Instagram, said a spokesperson for Facebook. We are also proud to be launching a programme with Media Smart to help educate young people about branded content and how to identify it.

Social media influencers can be paid considerable amounts by charging companies to promote products with posts that can be seen by their followers. Such is the money making potential of the site, influencers who have built businesses from their profiles have been dubbed the “Insta-rich”.

Instagram, the world’s second largest social network – with an estimated 850 million regular users – is hugely popular among younger demographics whom advertisers are desperate to target, as they shift away from traditional media. Instagram’s revenues are expected to rise 47% this year to $13.9bn, and to $18.2bn in 2021, according to the research firm eMarketer.