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September 9, 20219:28 AM UTCLast Updated ago

Technology

Paid influencers must label posts as ads, German court rules

Reuters

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1 minute read
The Instagram application is seen on a phone screen August 3, 2017.
REUTERS/Thomas White

The Instagram application is seen on a phone screen August 3, 2017.
REUTERS/Thomas White

BERLIN, Sept 9 (Reuters) - Social media influencers who receive money
from companies to promote products must clearly label such posts as
advertisements, a top German court ruled on Thursday.

If the influencers are not paid, they can show products without the
advertising label, the Federal Court of Justice ruled in the cases of
three influencers on Facebook's (FB.O) social media site Instagram.

Influencers with thousands of followers can earn large fees from
companies to promotes a product on Instagram.

The court said one fitness influencer should have been clear she was
advertising when she was paid to promote a brand of jam.

However, it dismissed a case against television presenter and
influencer Cathy Hummels, whose post about a stuffed toy had led
people to the manufacturer's site. She had not been paid for the
promotion so was not obliged to label it as an ad, the court ruled.

Instagram last year reached a deal with Britain's Competition and
Markets Authority (CMA) to crack down on hidden advertising by
influencers on its photo and video platform.

Reporting by Emma Thomasson; editing by Jason Neely

Our Standards: The Thomson Reuters Trust Principles.

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