CCP Issues Warning to Social Media Influencers

The Competition Commission of Pakistan (CCP) controls monopolization in the market and ensures fair competition and consumer protection. Recently, the commission issued a warning to social media influencers and endorsers against engaging in deceptive marketing practices on online platforms. Moreover, it has pledged to take stringent action against those engaged in illegal online marketing practices. The warning extends to social media influencers, content creators, and advertisers who market products or services via different platforms through false or misleading endorsements.

Therefore, consumers are advised to remain vigilant and report any deceptive marketing to the CCP. In this regard, a professional digital marketer, Mubashir Mehmood, said that marketers primarily target young audiences, such as teenagers and users in their early 20s. This is because these individuals may not fully understand the implications of the endorsements they encounter.

“This lack of understanding (of youngsters, which leads to loss in many cases) can reduce trust, a crucial element in the digital space, especially in e-commerce.”

In a statement, the commission maintained that false or misleading endorsements are in violation of Section 10 of the Competition Act, 2010, which denies deceptive marketing practices. Moreover, it has issued guidelines clarifying that endorsers must disclose any material connection with the product or service being endorsed. It also includes the disclosure of information, including whether they are genuine users, paid performers, employees, or recipients of free products or services.

It is pertinent to mention here that influencer marketing has become a significant element of modern advertising strategies. This type of marketing uses the popularity and reach of social media influencers to promote brands and products.