Twelfth report - Influencer culture: Lights, camera, inaction?

The ASA has not received any complaints relating to virtual influencers. They are not aware of research that suggests that virtual influencers are causing advertising-related harm and do not have the basis to consider further, at this stage, the recommendation that virtual influencers should be watermarked when the account is being used to advertise to online users.

The ASA will commit to exploring how they can clarify further that payment alone invokes advertising disclosure requirements and will explore whether there is a case for reconsidering the ASA system payment and control tests as they apply to certain categories of native advertising, including influencer advertising, whilst ensuring their regulation does not restrict freedom of speech by extending unduly to areas it should not, for example, editorial and sponsorship matters.

The government welcomes the Committee’s support for the CMA to receive greater powers to enforce consumer protection law. The ASA system has submitted a response to the Government Online Advertising Programme, to which this Committee recommendation is directed, and is committed to significantly enlarging its budget to respond to the capacity, technology and expertise challenges that all digital regulators are facing.

The CMA continues to work closely with Meta Platforms Ireland Limited (Instagram) to assess compliance with consumer protection law in relation to influencer endorsements. The CMA has shared the draft Principles with several social media platforms and other key stakeholders, and expects to publish a final version in due course.