Berlin: Social media influencers who receive money from companies to promote their products must clearly label such posts as advertisements, a top court ruled on Thursday.
If influencers are not paid, they can show products without advertising labels, the Justice Federal Court rules in case of three influencers on the social media site Facebook Instagram.
Influencers with thousands of followers can get a big cost of the company to promote products on Instagram.
The court said one fitness influencer should clearly advertise when he was paid to promote the jam brand.
However, it rejected the case against a television presenter and influencer Cathy Hummels, which posted about toy dolls had led people to the manufacturer’s site.
He has not been paid for promotion so it is not obliged to label as an advertisement, the court ruled.
Instagram last year reached an agreement with the competition and the UK market authority (CMA) cracked down on hidden advertising by influencers on the photo and video platforms.
Paid influencers must label posts as advertisements, German court rules
