CCP warns social media influencers against deceptive marketing practices, vows strict action

The Competition Commission of Pakistan (CCP) has warned social media influencers and endorsers against engaging in deceptive marketing practices, pledging to take strict action against those found violating regulations.

The CCP’s warning extends to influencers, content creators, and advertisers who promote products or services through various platforms using false or misleading endorsements. Consumers are urged to remain vigilant and report any deceptive advertising to the commission.

Mubashir Mehmood, a professional in digital marketing, noted that influencers often target young audiences, such as teenagers and those in their early 20s who may not fully understand the implications of the endorsements they encounter.

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“This lack of understanding (of youngsters, which leads to loss in many cases) can reduce trust, a crucial element in the digital space, especially in e-commerce.”

Influencer marketing has become a significant component of modern advertising strategies, utilising the popularity and reach of social media influencers to endorse brands and products.

These endorsements can help consumers make informed decisions, particularly for products or services with qualities that are difficult to assess before use.

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The CCP emphasised in a statement to the media that false or misleading endorsements violate Section 10 of the Competition Act, 2010, which prohibits deceptive marketing practices.

The commission has issued guidelines clarifying that endorsers must disclose any material connection with the product or service being endorsed, including whether they are genuine users, paid performers, employees, or recipients of free products or services.

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In collaboration with stakeholders, the CCP aims to ensure fair competition and consumer protection. The commission is committed to taking strict action against deceptive marketing practices to uphold the Competition Act, 2010.