Instagram Announces Global Change for Advertising Disclosure

Following investigations last year by the UK’s Competition and Markets Authority (CMA) which led to 16 celebrities pledging to clean up their act on social media, Instagram has announced a suite of changes that are aimed at stopping hidden advertising on the platform. The global changes are likely to take effect in mid 2021 and will:

• prompt users to confirm if they have received an incentive to promote a product or service and, if so, require the user to disclose;
• extend the ‘paid partnership’ tool on the app to all users; and
• use technology and algorithms to identify hidden advertising and report such posts to the businesses being promoted.

The AANA recently announced changes to its Code of Ethics that will require influencers to disclose advertising in a way that is clear, obvious and upfront to the audience and expressed in a way that is easily understood (e.g. #ad, Advert, Advertising, Branded Content, Paid Partnership, Paid Promotion). Less clear labels such as #sp, Spon, gifted, Affiliate, Collab, thanks to… or merely mentioning the brand name may not be sufficient to clearly distinguish the post as advertising.

The Australian Competition and Consumer Commission (ACCC) recently reminded influencers that they must clearly disclose if they have been paid to promote a product or service or face possible penalties of up to $500 000 for individuals and $10m for corporations.