Influencer marketing has become essential in modern advertising, using social media platforms as crucial channels for brands to connect with their target audience. This strategy involves collaborating with popular social media influencers to endorse or promote a brand, product, or service, leveraging their credibility and extensive reach. Celebrities’ online endorsements significantly influence consumers’ purchasing decisions.
Influencer marketing can intensify competition among businesses by highlighting the reliability and quality of their products or services. It also facilitates the entry of small businesses and newcomers into the market, aiding in their expansion. However, the increasing prevalence of influencer-driven marketing campaigns has led to a rise in deceptive marketing practices, posing significant risks to unsuspecting consumers.
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CCP Notifies Digital Marketers
The Competition Commission of Pakistan (CCP) has observed certain influencers and endorsers making false and misleading endorsements to attract consumers. The Commission has already issued detailed “Guidelines on Section 10: Deceptive Marketing Practices,” clarifying that false or misleading ‘endorsements/testimonials’ are prohibited.
Mubashir Mehmood, a professional in digital marketing, highlighted that influencers often focus on younger audiences, including teenagers and individuals in their early 20s, who may not fully grasp the implications of the endorsements they come across.
“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.”
Furthermore, the CCP emphasized in a statement to the media that false or misleading endorsements violate Section 10 of the Competition Act, 2010, which prohibits deceptive marketing practices. In collaboration with stakeholders, the CCP aims to ensure fair competition and consumer protection. The commission is dedicated to taking strict action against deceptive marketing practices to uphold the Competition Act, 2010.
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