Celebrities and social media influencers investigated for not labelling commercial posts

Watchdog says some posts don't clearly state they are paid for by a brand

The Advertising Standards Authority has intervened in a number of cases were rules have been breached, including one post by Millie Mackintosh (Getty)

Social media stars promoting goods on Instagram, Snapchat and other social media platforms are being probed by the competition regulator over concerns that paid advertisements are not being properly declared.

The Competition and Markets Authority (CMA) launched an investigation on Tuesday into the labelling of online endorsements.

Some celebrities and influencers have a considerable amount of commercial power thanks to 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.

This makes online endorsements from celebrities and influencers valuable to brands trying to reach target audiences and boost sales.

But the watchdog fears some influencers are flouting consumer protection law which requires that any reward received for an endorsement, is made clear.

If celebrities 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 said.

They are then more likely to place trust in that product than they would otherwise have been, the watchdog said, as they think it has been recommended by someone they admire.

The CMA investigation will seek to find whether and to what extent people are being misled by social media posts.

Several stars have faced action from the Advertising Standards Authority over paid-for posts which were not properly labelled.

An ad for Britivic's J20 appearing on Made in Chelsea star Millie Mackintosh's Instagram account was banned by the ASA in 2015 while Celebrity Big Brother contestant Stephanie Davis had her post featuring a vitamin company was banned earlier this year.

George Lusty, the CMA’s Senior director for consumer protection, said: "Social media stars can have a big influence on what their followers do and buy.

"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.

The CMA has written to a range of celebrities and social media influencers to gather more information about the deals they have with brands.

If it finds practices that break consumer protection law, it can take enforcement action.