In the News

Theory of Demand - The Role of Influencers

Geoff Riley

26th January 2019

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How many of us have recommended a product to others - perhaps during a water cooler conversation - or have been prompted to buy after being influenced online?

The Competition and Markets Authority has decided to crack down on some of the tactics employed by so-called celebrity 'influencers'. From now on, they will be advised to make it clear to their followers if they have been offered money to endorse products in their various social media feeds such as Instagram, Facebook, Twitter and You Tube. The CMA stands ready to investigate whether the impact of influencers on social media risks being counter to consumer law.

The issue is explored further by BBC's Tech Tent - click here

Online endorsements from celebrities and influencers can help brands boost sales, as millions of fans follow their social media channels to see where they go on holiday, what they wear, which products they use and more.

CMA Report, January 2019

✔️ we secured commitments from celebs to clearly label endorsements and published a guidance to social media influencers.
✔️ we raised concerns to viagogo about their non-compliance to our court order against them.
✔️ Juliette Enser was named our new Senior Director of State Aid. pic.twitter.com/dzeyvB1SJi
— Competition & Markets Authority (@CMAgovUK) January 25, 2019

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Geoff Riley

Geoff Riley FRSA has been teaching Economics for nearly forty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD and Revision conferences in the UK and overseas.

@tutor2uGeoff

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