The Business Times

Instagram commits to fighting hidden ads amid UK probe

Published Fri, Oct 16, 2020 · 08:14 AM

[LONDON] Facebook's Instagram will change the way users post advertisements as part of a wider probe by the UK competition watchdog into combatting misleading online ads.

Facebook has committed to this "important behaviour shift" following an investigation by the Competition and Markets Authority (CMA), the regulator said in a statement Friday. The changes will make it "much harder" for users to post ads without labelling them as such.

Instagram committed to prompting users "to confirm if they have been incentivised in any way to promote a product or service and, if so, require them to disclose this fact clearly", the CMA said.

The CMA opened its investigation in 2018, seeking to have adverts clearly labelled to avoid people being misled. A group of British celebrities, such as Ellie Goulding and models including Rosie Huntington-Whiteley and Alexa Chung, agreed last year to tell shoppers upfront if they are being paid for social media posts.

Failing to label posts properly may lead followers to believe that an endorsement is a star's own view and to trust a product recommended by someone they admire, the CMA has said previously.

Facebook didn't immediately respond to an email seeking comment.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

VIEW ALL

Instagram will have to regularly update the CMA on its progress. The regulator said it will continue to investigate the practices of other social media platforms and push for changes where needed.

The changes will affect users in the UK and anyone directing posts toward Instagram users in the country. The regulator said it will continue to investigate the practices of other social media platforms and push for changes where needed.

BLOOMBERG

KEYWORDS IN THIS ARTICLE

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to  t.me/BizTimes

Technology

SUPPORT SOUTH-EAST ASIA'S LEADING FINANCIAL DAILY

Get the latest coverage and full access to all BT premium content.

SUBSCRIBE NOW

Browse corporate subscription here