The Power And Perils Of Influencer Marketing: Recent Developments, Competition Considerations And Best Practices – Media, Telecoms, IT, Entertainment – Canada – Mondaq News Alerts

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In a move to address concerns related to misleading influencer
marketing, the Competition Bureau announced late last year that it
had sent letters to nearly 100 brands and agencies across Canada,
advising them to take a close look at their social media marketing
practices.  This followed in the wake of a similar campaign initiated by the U.S. Federal
Trade Commission in 2017.

This is the first part of a two-part series. Next week, we will
look at what actions the Bureau takes after issuing
warnings like these to market participants (spoiler alert: the
Bureau took enforcement action, so these letters should not be
taken lightly).

The Bureau’s news release highlighted the responsibility of
influencers and businesses to clearly disclose any relationship
between influencers and the brands, products or services they
promote in their digital content. In it, the Bureau emphasizes the
need for influencers to post honest reviews and testimonials that
are derived from actual experiences with the products or brands
they are promoting. The Bureau’s news release also serves as a
reminder that businesses share a responsibility with influencers
when they post advertisements on social media, and that businesses
themselves may be liable for false or misleading content posted by
the influencers