Influencer marketing: businesses and influencers must be transparent when advertising on social media

News release

Consumers must be able to easily recognize when social media content is actually an advertisement

December 19, 2019 – GATINEAU, QC – Competition Bureau

The Competition Bureau sent letters to close to one hundred brands and marketing agencies involved in influencer marketing in Canada, advising that they review their marketing practices to ensure they comply with the law.

Influencers should clearly disclose the relationships they have with the business, product or service they promote. There is a relationship if the influencer receives money or commissions, free products or services, discounts, free trips or tickets to events, or has a business or family connection with the brand, among other things. Influencers should also be honest, and base any reviews and testimonials on actual experience.

Businesses share a responsibility with influencers when they post advertisements on social media, as they may be liable for false or misleading content.

The Bureau reached out to brands and marketing agencies following a thorough review of influencer marketing practices across various industries, including health and beauty, fashion, technology and travel.

Quotes

“When navigating the digital marketplace, consumers often rely on the opinions shared by influencers. To make informed purchasing decisions, consumers must know if these opinions are independent or an advertisement.
Ensuring truth in advertising in Canada’s digital economy is a priority for the Competition Bureau.” 

Matthew Boswell,
Commissioner of Competition

Quick facts

  • Advertisers may pay or compensate influencers to create and share content that feature their products or brands.

  • The Competition Act applies to influencer marketing just as it would to traditional forms of advertising.

  • The deceptive marketing practices provisions of the Competition Act apply to anyone who is promoting a product, service, or any business interest, and those who do not comply may face significant penalties.

Associated links

Contacts

For media enquiries, please contact:
Media Relations
Telephone: 819-994-5945
Email: ic.media-cb-bc.ic@canada.ca

For general enquiries, please contact:
Information Centre
Competition Bureau
Telephone: 819-997-4282
Toll free: 1-800-348-5358
TTY (hearing impaired): 1-800-694-8389
www.competitionbureau.gc.ca
Enquiries | Complaints

Stay connected:
Twitter | Facebook | LinkedIn | YouTube | RSS Feed | Email Distribution List

The Competition Bureau, as an independent law enforcement agency, ensures that Canadian businesses and consumers prosper in a competitive and innovative marketplace.

Report a problem or mistake on this page
Please select all that apply:

Thank you for your help!

You will not receive a reply. For enquiries, contact us.

Date modified: