Uninformed influencer endorsement of products a  problem, says ad watchdog

The advertising watchdog said that 80 websites had promoted prescription-only medicines, violating the agency's code of standards.

Complaints to Ireland’s advertising watchdog about influencer endorsements are increasing, with more companies using content creators to promote their products, the chief executive of the Advertising Standards Authority has said. 

Orla Twomey warned that companies could face reputational damage by working with the wrong type of content creator.

Ms Twomey said: "Influencer marketing is growing year on year. Brands need to be careful of who they engage with. They need to ensure the influencers they use are informed and brand-safe."

The health-and-wellness sector is of increasing concern, Ms Twomey said, with the ASA preparing for trends across other European countries to come to Ireland.

"We're pretty sure it's already happening here as well. This new 'wellness area' is making health claims for products, which, for us, is a challenge. If one person chooses to take a supplement, that's fine; it might work for them, whether it's a placebo or otherwise, but that does not mean they're entitled to tell other people to take them."

Ms Twomey noted that even if an influencer isn’t telling their followers to use a certain product, offering a promotional or a discount code for it is an endorsement.

"That is a real problem, because there are really tight rules around supplements and what they can claim," Ms Twomey said.

A recent investigation by the ASA found almost 80 websites had promoted botox and other prescription-only medicines, violating the agency's code of standards.

A total of 123 advertiser websites were examined by the authority, of which only 44 did not promote prescription-only medicines.

"We do see this as an increasing area of concern, and it is definitely one that we will have to focus on a little bit more," Ms Twomey said.

Ms Twomey is also expecting a rise in the number of influencers who promote and advertise financial trading and gambling, which can cause "real-world harm", she said. Several mainstream Irish influencers have promoted betting companies registered outside of Ireland that do not have the authority to operate within the State. A smaller cohort of these influencers has also promoted unregulated financial trading platforms that lack authorisation from the Central Bank.

"This is a real challenge," Ms Twomey said. "These influencers might use these platforms, but they are not regulated to give financial advice. You have to be regulated in Ireland, and even in the broader EU.

"It is an area where complaints are going to grow, as there is a real-world harm associated with these things."

Ms Twomey was speaking at an ASA event on the rise of uninformed 'experts', which is a growing issue, both in the influencer sphere and the wider advertising landscape.

The CEO said an increasing number of influencers are also claiming to know about an area because of their own personal experience, leading them to speak with uninformed 'authority' on the broader sector.

"This does not mean that they are experts," Ms Twomey said. "It's important that people recognise that."