Celebrities And Influencers Face Social Media Financial Ads Clampdown
Influencers have been warned about promoting financial products on social media as the City watchdog vowed to clamp down on illegal adverts.
The Financial Conduct Authority (FCA) has issued updated guidance to online payday loans no credit check content creators on how to advertise on platforms such as Instagram.
The guidance relates to financial products such as online payday loans no credit check and pensions as well as investment schemes including cryptocurrencies.
It comes after Kim Kardashian was fined £1million in the US for failing to disclose she was paid £200,000 to promote cryptocurrency Ethereum Max to her millions of followers in 2021.
Financial promotions must be clear, fair and not misleading, the UK regulator said.
Crypto fail: Kim Kardashian (pictured) was fined £1m in the US for failing to disclose she was paid £200,000 to promote cryptocurrency Ethereum Max
Adverts for risky products such as cryptocurrencies must also be labelled with clear warnings to consumers.
The watchdog reminded influencers that they could be committing a criminal offence if they promote financial products that are subject to regulation without approval.
The FCA said firms ‘are on the hook' for all their promotions and must make sure anyone they work with sticks to the rules.
Lucy Castledine, of the watch- dog, said: ‘Promotions aren't just about the likes, they're about the law. We will take action against those touting financial products illegally.'
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