Social Media Stars Agree To Declare When They Post Ads For Products

'Britain's Competition and Markets Authority (CMA) has threatened prominent social media stars with heavy fines or prison time if they advertise commercial products on social media without making it clear that they are doing so in exchange for financial rewards,' writes Slashdot reader dryriver. The BBC reports: Sixteen social media stars including singers Ellie Goulding and Rita Ora, models Rosie Huntington-Whiteley and Alexa Chung, and vlogger Zoella have agreed to change how they post online. They will have to clearly state if they have been paid or received any gifts or loans of products they endorse. It follows warnings from the Competition and Markets Authority that their posts could break consumer law. Online endorsements can boost brands but can also mislead, said the CMA. The CMA has not made a finding on whether the influencers named breached consumer law, but said all of them volunteered to change their practices following an investigation. However, if they fail to comply with the agreement reached with the CMA, they could be taken to court and face heavy fines or prison sentences of up to two years.

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