The British Competition and Markets Authority said on Friday: Photo and video sharing service Instagram – owned by Facebook – has agreed to take action to eliminate hidden ads from so-called influencers on its platform.
Influencers with thousands of followers can earn large fees from companies by promoting their products on Instagram.
In what the British Competition and Markets Authority described as an important shift in the behavior of the important social media platform, Facebook Ireland – which operates Instagram in Britain – has pledged to make a package of changes.
She said Britain’s Competition and Markets Authority said in a statement, “This will make it difficult for people to post an advertisement on Instagram without authorizing it.”
Facebook said it was pleased to work with the UK Competition and Markets Authority in its ongoing effort to increase transparency about when people are paid to post content on Instagram.
“We are also proud to launch a program with MediaSmart to help educate young people about branding content and how to recognize it,” Facebook added.
Britain’s Competition and Markets Authority said: It is investigating concerns that too many influencers are posting content about companies without making it clear that they got paid or other incentives to do so. Influencers will need to confirm and disclose whether they have received any incentives to promote a product or service.
The British Competition and Markets Authority said: Instagram will also use the technology to determine when users may not have clearly discovered that the post is advertising.
The agency added that 16 celebrities pledged last year to clean up their work on social media, after the British Competition and Markets Authority took action.
After Instagram launched the Reels feature last August on a large scale in order to compete with the famous TikTok service, it appeared earlier in October that it was looking to generate income through this feature.
And announced The company today that it will begin testing the Reels shopping feature later this year and will also start making IGTV videos globally shoppable starting October 5.