German Court Rules that Influencers Must Label Posts as Ads

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Social media influencers who make money from companies to promote their products were ordered by a German high court last Thursday to clearly label such posts as advertising.

These influencers are only allowed to show products without the advertising label if they are not paid for it, the Federal Court ruled, citing the case of three influencers on Facebook’s own Instagram.

Influencers with thousands of followers earn substantial income from companies that get them to promote a product on Instagram.

In addition, Instagram has reached an agreement with the U.K. Competition and Markets Authority (CMA) in 2020 to remove hidden advertising by influencers on its photo and video networks.

For more information, view the original story from Reuters.

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