ISLAMABAD: Influencers, content producers, and advertisers have been cautioned by the Competition Commission of Pakistan (CCP) not to advocate items or services falsely or misleadingly on multiple platforms.
In a similar vein, it encouraged customers to exercise caution and notify the commission of any instances of dishonest advertising. In accordance with Section 10 of the Competition Act of 2010, the watchdog declared that it would take strong action against anyone using misleading marketing techniques.
With social media platforms acting as vital channels for brands to connect with their target audience, influencer marketing has become a crucial component of contemporary advertising tactics.
An influencer-driven marketing campaign is a type of advertising that makes use of social media influencers’ reach, popularity, and reputation to support and advertise a product, service, or brand. Celebrity online endorsements are a significant factor in influencing people’ purchasing decisions.
The recommendations are especially useful for customers who purchase products or services whose quality could be difficult to determine before using them. The data that endorsements offer may facilitate quicker and more assured decision-making on the part of customers.
It could increase rivalry amongst companies based on the dependability of their goods or the caliber of services they provide. Additionally, it may facilitate the entry or expansion of small enterprises and recent market entrants.
But as influencer-driven marketing initiatives have proliferated, so too have dishonest marketing techniques, which put unsuspecting customers at grave risk.
The CCP has observed that some influencers and endorsers are using deceptive and fake endorsements in an effort to draw in customers. As a deceptive marketing technique, it is initially a breach of Section 10 of the Competition Act of 2010.
In-depth “Guidelines on Section 10: Deceptive Marketing Practices” that the commission has already released make it clear that using false or deceptive “endorsements/testimonials” is forbidden.
If the endorser providing the testimonial has not disclosed his material relationship to the product or service being supported, then the endorsement is fraudulent or deceptive.
In exchange for providing the user testimonial or endorsement as an influencer, celebrity, or opinion leader, he must declare whether he is a true user of the product or service, a paid performer, an employee of the firm or brand, or the receipt of a free good or service.
