In response to emerging trends and consumer behaviors, the Competition Commission of Pakistan (CCP) has issued a strong cautionary notice to influencers, content creators, and advertisers regarding the proliferation of false and misleading endorsements across various advertising platforms. The Commission urges consumers to remain vigilant and report any instances of deceptive advertising.
Influencer marketing has become a prominent component of contemporary advertising strategies, with social media platforms serving as primary channels for brands to engage with their target audiences. Such marketing campaigns leverage the popularity, credibility, and reach of social media influencers to endorse or promote products and services. Endorsements by online personalities play a significant role in informing consumer purchasing decisions, particularly for products or services whose quality may be difficult to assess beforehand.
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While endorsements can provide valuable information to consumers and foster healthy competition among businesses, the increased prevalence of influencer-driven marketing has also led to a rise in deceptive practices. The CCP has observed instances where influencers and endorsers engage in false and misleading endorsements to attract consumers, constituting a violation of Section 10 of the Competition Act, 2010, which prohibits deceptive marketing practices.
To address this issue, the CCP has issued comprehensive guidelines on deceptive marketing practices, clarifying that false or misleading endorsements and testimonials are prohibited. It is deemed deceptive if the endorser fails to disclose any material connection with the product or service being endorsed, such as being a paid performer, employee of the brand, or recipient of free products or services.
By collaborating with stakeholders, including influencers, content creators, advertisers, and consumers, the CCP aims to ensure fair competition and protect consumer rights. The Commission is committed to taking stringent action against those engaged in deceptive marketing practices under the provisions of the Competition Act, 2010, to uphold transparency and integrity in the marketplace.
