Alexa Chung

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Zoe SuggContent ='JJ Lin'> (Zoella), singer Rita OraContent ='JJ Lin'> and model Rosie Huntington-Whiteley are among those who have agreed changes

Sixteen Social MediaContent ='JJ Lin'> stars including singers Ellie GouldingContent ='JJ Lin'> and Rita OraContent ='JJ Lin'> , models Rosie Huntington-Whiteley and Alexa ChungContent ='JJ Lin'> , 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 FollowsContent ='JJ Lin'> warnings from The CompetitionContent ='JJ Lin'> 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.

Actress Michelle KeeganContent ='JJ Lin'> , vlogger Jim ChapmanContent ='JJ Lin'> and reality TV personality Chloe SimsContent ='JJ Lin'> were also named

The celebrities named by the CMA are:

Warning letters have been sent to A NumberContent ='JJ Lin'> of other unidentified celebrities, urging them to review their Social MediaContent ='JJ Lin'> posts.

Analysis

by Chris Fox, technology reporter

Usually when celebrities post an advert without being clear they were paid to do so, it's the Advertising Standards Authority (ASA) that gives them a slap on the wrist - if a complaint is made.

But while the ASA takes action against individual advertisements or campaigns, The CompetitionContent ='JJ Lin'> and Markets Authority (CMA) can take action against People .

Alexa ChungContent ='JJ Lin'> , Binky Felstead and Iskra LawrenceContent ='JJ Lin'> were all named

Social MediaContent ='JJ Lin'> platforms including Instagram already have built-in tools, such as the paid-partnership tool, which make it clear that a post is an advertorial.

All 16 of the celebrities named by the CMA were being investigated because they may have broken The RulesContent ='JJ Lin'> repeatedly.

By agreeing to change their ways they have avoided court action, which could have led to unlimited fines or even up to two years in jail.

Officially, no ruling was made on whether The StarsContent ='JJ Lin'> broke The RulesContent ='JJ Lin'> , because they were not taken to court This TimeContent ='JJ Lin'> .

But the CMA says its investigation is not finished. It has sent warning letters to more influencers, and is going to investigate The SocialContent ='JJ Lin'> networks too.

Andrea Coscelli, chief executive of the CMA, said: "Influencers can have a huge impact on what their fans decide to buy. People could, quite rightly, feel misled if what they thought was a recommendation from someone they admired turns out to be a marketing ploy.

"You should be able to tell as soon as you look at a post if there is some form of payment or reward involved, so you can decide whether something is really worth spending your hard-earned money on. "

What are The RulesContent ='JJ Lin'> ?

But one lawyer told the BBC that the UK's rules were still complex.

"The CMA has portrayed these posts As If some celebrities are deliberately trying to pull the wool over The EyesContent ='JJ Lin'> of their fans, but often it is just that the various guidance is difficult to follow," said Geraint Lloyd-Taylor, legal director at law firm Lewis Silkin.

"I think the hashtag #ad will become the default, but it seems that the CMA intends to also look more at what the platforms are doing and it might be that we see more built-in tools and other changes from them as well. "

The PracticeContent ='JJ Lin'> of endorsing products, from clothes to cars, hotels to holidays, is widespread among so-called Social MediaContent ='JJ Lin'> influencers who can earn tens of thousands of pounds from companies for a single post on sites such as Instagram.

The RiskContent ='JJ Lin'> is that consumers will place more trust in a product that has been recommended by someone they admire on Social MediaContent ='JJ Lin'> .

Some celebrities do use hashtags such as #ad or #sponsored to indicate that they have been paid to post Content .

The Advertising Standards Authority has previously flagged several of reality star Louise ThompsonContent ='JJ Lin'> 's posts as product endorsement

The CMA will be conducting further investigations into The RoleContent ='JJ Lin'> and responsibilities of Social MediaContent ='JJ Lin'> platforms.

The Advertising Standards Authority launched its own investigation into advertising on Social MediaContent ='JJ Lin'> following complaints about The PracticeContent ='JJ Lin'> and has flagged up Content from reality TV star Louise ThompsonContent ='JJ Lin'> about product endorsement on two occasions.

social media influencers, competition and markets authority, social media

Source of news: bbc.com