LONDON – British regulators said Friday that Instagram will clamp down on “hidden advertising” by social media influencers.
The Competition and Markets Authority said Instagram's owner Facebook has committed to tightening policies to restrict influencers who don’t disclose they’re being paid to promote businesses on its platform.
It's part of an investigation into the influencer industry the watchdog launched two years ago. Regulators are concerned that Instagram wasn't doing enough under consumer protection laws to stop hidden advertising, which is illegal in the U.K.
They want to make it harder to mislead people with posts that aren't labeled as ads. Influencers are online personalities with thousands of followers who can earn hefty fees.