Typically, celebrities and influencers have millions of followers who watch their channels to see where they go on holiday, what they wear, which products they use, the books they read and more.

Online endorsements from celebrities and influencers can help brands reach target audiences and boost sales. Where influencers are paid or rewarded to promote, review or talk about a product in their social media feeds, consumer protection law requires that this must be made clear.

If they do not label their posts properly, fans or followers may be led to believe that an endorsement represents the star’s own view, rather than a paid-for promotion.

The CMA says consumers are then more likely to place trust in a product if they think it has been recommended by someone they admire. They might not do so, however, if it was made clear that the brands featured have paid, or in some other way rewarded, the celebrity in return for endorsement.

As part of its investigation, the CMA has written to a range of celebrities and social media influencers to gather more information about their posts and the nature of the business agreements they have in place with brands.

The CMA investigation is considering the extent to which influencers are clearly and accurately identifying any commercial relationships, and whether people are being misled.

George Lusty, the CMA’s senior director for consumer protection, said: ‘If people see clothes, cosmetics, a car, or a holiday being plugged by someone they admire, they might be swayed into buying it.

‘So, it’s really important they are clearly told whether a celebrity is promoting a product because they have bought it themselves, or because they have been paid or thanked in some way by the brand.

‘If the CMA finds practices that break consumer protection law, it can take enforcement action.’

As part of the investigation the CMA is asking the public to share their experiences.

CMA survey on social media posts is here

Report by Pat Sweet