Controversial influencer, Imvely. She is the person who prompted the Fair Trade Commission to take action to prevent disguised advertisements by SNS influencers. (Photo by Asia Economy DB)
[Asia Economy Reporter Moon Chaeseok] From now on, when SNS influencers on platforms such as YouTube and Instagram post product reviews or other content in exchange for economic compensation, they must clearly state phrases like "Sponsored" or "Advertisement."
The Fair Trade Commission announced on the 23rd that it has finalized the revised guidelines on the labeling and advertising of recommendations and endorsements, which stipulate the principles of disclosing economic interests and the disclosure methods for each SNS platform, and plans to implement them starting September 1.
The Fair Trade Commission prepared the revision to prevent consumers from being harmed by disguised advertisements in the form of product reviews created by some influencers on YouTube and Instagram who did not disclose that their content was made in exchange for economic compensation.
According to a survey conducted by the Korea Consumer Agency from October to November last year, among 582 advertising posts on the top 60 influencer accounts in Korea, only 29.9% (174 posts) clearly stated that they received economic compensation.
According to the revision, in the case of advertisements through SNS, the statement that "economic compensation was received" must be displayed in a location easily found by consumers.
It is prohibited to place such phrases so that they can only be seen by clicking "See more" or to post them in the comments.
The phrases must be written using an appropriate font size and color. They must not be written in too small font sizes or colors similar to the background that make them hard to see.
It is necessary to clearly specify what kind of economic compensation was received, such as monetary support, discounts, or sponsorships. Ambiguous phrases like "Used for a week," "Trial group," or "This post is promotional" are not allowed.
Displaying only the brand name and product name as hashtags is also prohibited.
If the content is created in Korean, the information related to economic compensation must also be displayed in Korean.
Terms such as "Thanks to," "AD," "Collaboration," or "Partnership" are not acceptable.
The Fair Trade Commission also stipulated the disclosure methods for recommendation and endorsement advertisements by media type.
When posting on blogs or internet cafes, the information about economic compensation must be written at the beginning or end of the post, separated from the main text.
It is not allowed to insert this information in the middle of the content without separation from the main text.
When posting photo-based content on Instagram and similar platforms, the information about economic compensation must be displayed within the photo.
If the photo and the main text are connected so that consumers can easily recognize it, it is also acceptable to display it at the beginning of the text or in the first hashtag.
For video content posted on YouTube and similar platforms, the statement indicating economic compensation must be included in the post title or at the beginning or end of the video.
The statement must be displayed repeatedly so that consumers who watch only part of the broadcast can also be informed.
Real-time broadcasts such as AfreecaTV should follow this method, and if it is difficult to insert real-time subtitles, the statement must be conveyed by voice.
The Fair Trade Commission requires that if there is an employment relationship between the influencer and the advertiser, it must be disclosed.
Intentional exposure of specific products and brands by celebrities on SNS or linking to product information sites is also considered a recommendation or endorsement.
Goo Seongrim, head of the Consumer Safety Information Division at the Fair Trade Commission, said, "By reflecting the changed consumption environment including the diverse characteristics of SNS and clearly disclosing the economic interests between advertisers and influencers, we revised the recommendation and endorsement guidelines to prevent consumer damage caused by deceptive advertising and support consumers' rational choices."
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